How to easily make 1000 % per Year !

[brutusdog]

LOL !





OMG, you don't say...



Where did I say anything else ?

I said we are only risking 1% per trade, NOT your example of a fixed sum.

First you look where your trade will be invalidated, distance from your entry to your stop loss then gets translated into a position size that equals 1% of your capital. NO mention ANYWHERE of a fixed sum.

Fixed fractional position sizing, you always risk 1% of your equity, ie you continuously get bigger as your account grows.

It is really pretty irrelevant how you skew your expectancy, fixed targets, trailing stops, or whatever, but if there is a trader here who has never in his life managed to come up with a system that ON AVERAGE ends up with 50% winners, and a Risk / Reward of 1 : 2, then I honestly suggest they have their heads examined while immediately ending their trading career, it ain't going nowhere anyway.

Reading stuff like the above really helps me understand why 95% of traders don't make it.

You could easily even come up with a mechanical system that ON AVERAGE has 50% winners and a risk / reward of 1 : 2.

And for the third time on this thread:

Anyone who calls themselves a trader, yet honestly believes that ON AVERAGE, - lol, did everybody finally grasp that now -, gains of 1% / day are NOT feasible, go get themselves another job, while everybody else can feel free to interview some exchange members or people trading at prop firms. Many there exceed the ON AVERAGE 20% / month as per my example, and have returns of up to 50% on a REGULAR basis there.

Of course the latter is in most cases not compoundable, but still good for several millions / year, and in the few cases where it is compoundable up to certain sums when returns will start diminishing, it is good for creating real fortunes.

Besides, what this thread and the specific example is REALLY on about is showing how simple and conservative expectancy systems are all that is needed for getting rich trading, that a perfectly feasible way to compound yourself to a positive fortune can be achieved with a win rate of around one third of your trades, and risk : rewards of 1 : 3.

ON AVERAGE again, of course.

The over complication of this subject is exactly the problem, the primary concern for any winning trader over time is risk to reward nothing else. Get this right and i doesnt matter if you lose as over time you will win, there need not be any stress attached to trading. Thats how accounts grow. This thread is another example of the reasons traders fail, or never even make it to trading live....

 

[nunrgguy]

Realised R:R and Realised Win/Loss
Even 1.2:1 and 50/50 = profit in a perfect world.....

 

[scard55]

Sorry but i think the thread starter is fantasizing. To keep your risk low on a short term trading system you'll need a stop loss and since the stop loss will be significantly closer(in this case 1/2 the distance) to your buy or sell price than the target it's probably going to get taken out 80+ percent of the time. Remember the stock you're trading will rarely go straight up or down but goes up and down before settling on a particular direction. Just look at a candlestick chart. So basically you're asking someone for a system that can guarantee the price will move 10 tick in their direction before moving against their position 5 ticks in this example 50 % of the time, and I think the author got a little confused seeing the 1:2 ratio with this and thinking 50% of the time the move (10 ticks in your direction) is automatic when in reality what should happen 1/2 of the time would be you hit a target or stop 5 ticks+ and 1/2 the time 5 ticks minus. Someone who can consistently do much better than that is pretty much going to do well regardless unless they're some sort of savant with patterns and otherwise retarded.

 

[KLNK]

I can't find any flaws in the theory, but think about how this would play out in the real world. The following are a few factors that I think would draw the net profit down considerably, but I'd be love to see somebody prove my points incorrect, because this theory of yours is undoubtably inspiring.

- Living expences: I assume that one would trade full time with this system, thereby not having another income to rely on for living expences. This would constantly drain the account of profits and make the compounding effect less pronounced.

- Taxes: Don't know how this is in other countries, but here in Norway there's a 28% tax on capital gains. Another factor that makes the net profit considerably smaller.

- Commission: This would probably also pull down the net profit as it constantly eats up parts of the profit, but perhaps it's possible to trade without commission? Isn't forex trading without commission?

Relatively new to all of this, but it's very interesting.

 

[oildaytrader]

If one keeps inflating a balloon indefinitely,it can go inflating infinitely.

Most childish theories here!

One in a lifetime example of success based on one off situations,insider information and other information publicly available could keep repeating itself?

 

[Splitlink]

It is not easy. The old saw still rings true. If it was that easy, everyone would be doing it.

I like BSD but he is wrong on this one.

It interests me when I read of these high, pie in the sky, profits. Why did BSD come out with that!
What will go up 1000% is T2W's membership, to be sure, as they all come in to read how it is done.

 

[oildaytrader]

It is not easy. The old saw still rings true. If it was that easy, everyone would be doing it.

I like BSD but he is wrong on this one.

It interests me when I read of these high, pie in the sky, profits. Why did BSD come out with that!
What will go up 1000% is T2W's membership, to be sure, as they all come in to read how it is done.

BSD is a dreamer!

http://www.trade2win.com/boards/search.php?searchid=5040642

Have you ever traded a real account?

 

[barryb]

Of course it's not easy, but it is most definitely possible.

 

[Splitlink]

BSD is a dreamer!

http://www.trade2win.com/boards/search.php?searchid=5040642

Have you ever traded a real account?

Me? I trade most mornings of the week and have done for decades.

 

[oildaytrader]

Me? I trade most mornings of the week and have done for decades.

I was asking BSD.

Some of the threads he has started are fantasy returns.Here is one 55,000 % in one month.

http://www.trade2win.com/boards/general-trading-chat/44624-55000-one-month.html

http://www.trade2win.com/boards/tra...-why-dan-zanger-richer-than-most-traders.html

 

[Splitlink]

I was asking BSD.

Some of the threads he has started are fantasy returns.Here is one 55,000 % in one month.

http://www.trade2win.com/boards/general-trading-chat/44624-55000-one-month.html

http://www.trade2win.com/boards/tra...-why-dan-zanger-richer-than-most-traders.html

He's a likeable guy but I haven't heard of him for ages. I always try to assume the best of people! However, I think he's exaggerating this time. :whistling

In any case, even if he does it, it still isn't easy, so newcomers keep your feet firmly on the ground!

 

[oildaytrader]

Of course it's not easy, but it is most definitely possible.

These championship contenders did equivalent of 6,000 % per annum on demo accounts.It is possible.

http://hubpages.com/hub/Expert-advisors-making-8-000-per-annum

 

[Black Swan]

He's a likeable guy but I haven't heard of him for ages. I always try to assume the best of people! However, I think he's exaggerating this time. :whistling

In any case, even if he does it, it still isn't easy, so newcomers keep your feet firmly on the ground!

Woah there big fella....BSD was simply pointing out guys using EAs etc. to make these profits. The first thread is recorded results...endex...

 

[DionysusToast]

I'm late to this party somewhat.

So basically, all you need is to win 50% of the time and for you winners to be twice as large as your losers AND for the method to be scalable.

It's a bit like saying that ALL I need to be Miss Universe is to be a beautiful and witty 25 year old woman.

 

[Splitlink]

Basically, you've put your finger on it, for the 1000% . Do you realise how much profit that is?

You can, however, make enough profits to make it worth the time doing it and still look sexy enough to get laid!
The witty part can be put aside for an afternoon at the vicar's tea party.

 

[oildaytrader]

I'm late to this party somewhat.

So basically, all you need is to win 50% of the time and for you winners to be twice as large as your losers AND for the method to be scalable.

It's a bit like saying that ALL I need to be Miss Universe is to be a beautiful and witty 25 year old woman.

What if Timsk was miss universe ,it would work cause she rated the 55,000 % thread as top thread.She would be the contestant,judge and jury.

 

[barryb]

These championship contenders did equivalent of 6,000 % per annum on demo accounts.It is possible.

http://hubpages.com/hub/Expert-advisors-making-8-000-per-annum

I'm not talking about demo accounts. As is often the case in life and in trading, if someone can't do it themselves, they'll tell everybody that it's simply not possible. 20% per month is achievable risking 1%, depending on how far down the road you are with your own trading, and you will obviously need the right market conditions which your strategy will excel in. Also, you have to be in a position to be able to let this capital grow through compounding, so find a way to do it, i have.

 

[oildaytrader]

When do we start?Do we set up a private chat room using skype?Maximum 5 to 10 members.No stocks , only fx,oil and indexes.

Target: 7 winning trades a week net after losses

Profit target :30 points

Account size :$10,000

Annual target :$100,000( 7trades *30 points *$10 per point *50 weeks)

Trading setup s:Only high probability set ups.

Maximum trades per week :21(14 win /7 loss)

O D T

 

[Hooya]

The over complication of this subject is exactly the problem, the primary concern for any winning trader over time is risk to reward nothing else. Get this right and i doesnt matter if you lose as over time you will win, there need not be any stress attached to trading. Thats how accounts grow. This thread is another example of the reasons traders fail, or never even make it to trading live....

pretty much agree with that.

 

[Rossini]

What if Timsk was miss universe ,it would work cause she rated the 55,000 % thread as top thread.She would be the contestant,judge and jury.

Err no, that was me ;-)