Why do they do it?

This is a discussion on Why do they do it? within the General Trading Chat forums, part of the Reception category; Originally Posted by arabianights For the benefit of people like me who would never read those sorts of threads except ...

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Old Feb 3, 2011, 8:36pm   #218
 
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Re: Why do they do it?

Quote:
Originally Posted by arabianights View Post
For the benefit of people like me who would never read those sorts of threads except when alerted to lulz, I have located it here: http://www.trade2win.com/boards/fore...iscussion.html

Currently on a lulz hunt through it...
Ah, not the one I was thinking of. What do you reckon of this:
http://www.trade2win.com/boards/trad...e-journal.html

Started in Aug 2010 by a vendor with only 75 posts to his name. It now has an incredible 371,968 views. Is someone running a bot to get the view count up?
Haven't bothered to read much of it. The last few posts seem to be newbies.
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Old Feb 4, 2011, 2:09am   #219
 
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Re: Why do they do it?

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Originally Posted by trader_dante View Post
LOL, that's why we love T2W.

Make a claim of outside returns. You're a scammer with no record.

Make a claim of outside returns and back it up with a record. You're a scammer on a luck streak.

Make no claims. Show no records. Start a journal.

You're the pinnacle of veracity.

:-)
If it's not a lucky streak - what is it ? ?

You show these huge percentage returns but also tell us that good traders can still be poor. If you can make 1000%, you have no business being poor. You should be rolling in cash. People would be beating down your door asking you to manage their money.

Your pot was less than 1000 quid. Once you took out your stake - you had zero risk and you must have taken plenty of risk.

Is this unsustainable or do you just not have the mental fortitude to replicate this with larger sums? Serious question.

All we seem to have on T2W at the moment are a bunch of Holy Grail merchants and those 1000% returns are very grailish dotchathink?

Perhaps I'm just a sh1t trader with my 'tread carefully' approach. Maybe I should be going for 10% a day.
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Old Feb 4, 2011, 7:44am   #220
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Re: Why do they do it?

10% a day? You looser, I make that before breakfast.
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Old Feb 4, 2011, 8:14am   #221
 
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Re: Why do they do it?

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Originally Posted by meanreversion View Post
10% a day? You looser, I make that before breakfast.
Busted!
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Old Feb 4, 2011, 1:55pm   #222
 
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Re: Why do they do it?

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Originally Posted by DionysusToast View Post
Is this unsustainable or do you just not have the mental fortitude to replicate this with larger sums? Serious question.
Hello Dionysus Toast,

That's an excellent question.

My personal view is that this is sustainable (depending on your edge and presuming no outliers) but I personally do not have the mental fortitude to replicate it with larger sums.

The more my account grows, the less risk I take.

The funny thing is, 1,000 - 10,000 is exactly the same percentage return as 100,000 - 1,000,000.

However, I have no problem losing 10% of 10,000 in a single trade but I don't have the stomach for dropping 10,000 in one at this point in my career.

It doesn't make theoretical sense since the risk is the same in percentage. But we are human. And most people don't think in percentages, they think in terms of money.

I will have to drag Bison into this as he made an excellent post on this over here:
http://www.trade2win.com/boards/psyc...ml#post1412240

The reason I have always been able to run up small sums of money is because I find that only with a relatively small amount of money am I in the right frame of mind - that "zen like state" where the focus becomes not on the money but on beating the game.

When you have next to nothing, you play the game to get a high score.

When you have a high score, you just want to protect it.

The reason Bison, despite largely trading my calls, under my tuition, outperformed me so dramatically was that when I was taking my foot off the gas pedal at 10,000 (and withdrawing my initial stake plus profit), he was going all in on every hand the market dealt him.

I've repeated this same story with mind numbing regularity to a number of my students but when I was in prop, I sat next to a trader who was averaging $400,000 a week in the ES. He had come from nothing and had an account in the millions in just a few years.

I wanted to be just like him.

One evening when the office was quiet, he gave me an impromptu and rather informal mentoring session on what it exactly it was he did.

"I can do this!" I thought with a surge of adrenalin. "He uses S/R and the order book and he has some experience so that he remembers what the market looked like before it made major moves. There is no holy grail here. I CAN DO THIS".

Then one day, just before Non Farm Payrolls, he hit an offer of 1,200 lots in the ES, left his desk with no stop in and went to Sainsburys.

"Oh...I can't do this." I thought with despondency.

Later that day after he strolled back into the office having made an obscene amount of money, I was talking to one of the grads I had befriended.

"I'm going to be just like him one day." this grad said to me with a look of awe in his eyes.

"No, you're not..." was all I could think as he rushed back to his desk to get his stop to breakeven on the Bunds which had rallied about 5 ticks.
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Last edited by trader_dante; Feb 4, 2011 at 2:20pm.
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Old Feb 4, 2011, 1:55pm   #223
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Re: Why do they do it?

In line with the US policy of adjusting the denominator in order to make a ratio look better, I've effectively reduced the size of my trading pot and just made 1,000% over NFP just now.
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Old Feb 4, 2011, 1:59pm   #224
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Re: Why do they do it?

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Originally Posted by trader_dante View Post
However, I have no problem losing 10% of 10,000 in a single trade but I don't have the stomach for dropping 10,000 in one at this point in my career.
hmm...really?
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