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  1. R

    "Overtrading" - one of many fallacies based on FURU logic

    But if you are profitable, why limit yourself to only 2 trades? If you are making money on 2 trades per day, why not do 10 trades of the same type per day and multiply your profitability 5X? And if someone is not profitable, they can do 1 trade per day for a year, or 250 trades in one week -...
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    Looking for Active Traders to gain insight on Experiences and Challenges

    Biggest challenge is not having user-friendly tools to quantitatively confirm that we aren't trading random walk. I have all reasons to believe that I am trading random walk; and all of technical analysis is just data mining and cherry-picking. Would like to see more mathematical proof of the...
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    "Overtrading" - one of many fallacies based on FURU logic

    I agree that overtrading as in having so many positions open at the same time that it violates you risk management - is bad. That's a good point. Backtesting has its time and place. It is very helpful to see what an edge is. But I agree that any over complicated technical analysis is...
  4. R

    "Overtrading" - one of many fallacies based on FURU logic

    This doesn't exist. There is no such thing as "one perfect trade". Even if your strategy produces 80%+ win rate, mathematically the next trade you take has a 50% chance of being a loser.
  5. R

    "Overtrading" - one of many fallacies based on FURU logic

    The frequency of your trading doesn't protect your capital Consider the following scenarios : 1. Trader A made 5 trades in one month. 4 winning trades netted $5000 and 1 losing trade set them back -$7000. Trader A will potentially slowly bleed their account to $0 even though they do not...
  6. R

    "Overtrading" - one of many fallacies based on FURU logic

    Among all of the cliche trading FURU (Faux Guru) jargon, "overtrading" has to be one of the worst! It is an absolute joke to anyone who passed 5th grade math. Why would you not want to "overtrade"? Suppose your stats show that over 50 trades - net wins were $10,000 and net losses were $5,000...
  7. R

    Trading is simple!

    Thank you for the response. I do try to look at charts as much as possible and I do trade stocks. It is very difficult for me to swallow the argument that "studying the market" will make one understand price movement. There has to be a way to put it into words and explain price movement. Or at...
  8. R

    Trading is simple!

    In my experience, when somebody says that there is not need to "overthink" - it is highly highly likely that the person doesn't actually trade. Trend trading stocks is a zero-sum game even with outstanding risk management. You will be fighting mean reversion and mean reversion dominates...
  9. R

    Trading is simple!

    Why would you trade stocks short below MA and long above MA? You would be fighting mean reversion. Do you have any quantitative evidence that this works over a long period of time? Trend is not your friend. There are only two patterns in directional trading - 1. volatility contraction in...
  10. R

    How much capital do you need as a new trader?

    That's not always true. You could have 50 big wins and 200 small losses which will wipe out your big wins.
  11. R

    How long did it take you to realize that you will never be profitable trading

    Did you become consistent in one to two years? And if yes, how many years have you been trading since you became consistent?
  12. R

    How long did it take you to realize that you will never be profitable trading

    If you were making 20% per month with a $100k account(for example), your account would hit 1 billion $ in about 4years or so. :lol: It's possible in theory but then you would be the absolute #1 best trader in the world
  13. R

    Trading is simple!

    My biggest frustration was when after spending years studying and trading, I finally realized that I am not even making minimum wage trading when it's all said and done with all the time I've spent.
  14. R

    Safest way to trade?

    Telling someone to "use a stop loss" means absolutely nothing. You could risk 1-2% of your capital per trade AND use stop losses religiously. And all of your trades could be losers and you bleed your account to $0. If you don't know how you will manage your winners and set your stop losses way...
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    How long did it take you to realize that you will never be profitable trading

    It's not my trading scheme. Does your approach outperform the baseline drift consistently?
  16. R

    How long did it take you to realize that you will never be profitable trading

    Buy 50, then buy 40, then buy 30. Your average is 40 at this point Then sell some around 32 and take a bunch of losses. Then buy more at 20, then buy more at 10. Your average is 27-30 at this point, at best (remember you started buying at 50) Then sell around 13 and take a bunch of losses again...
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    How long did it take you to realize that you will never be profitable trading

    Most people come into this game thinking they will make money via active trading/daytrading with a small retail account. They don't expect to be putting in hours and hours of work and never get paid for it. If they have other income, that's great! but they still aren't making money trading.
  18. R

    How long did it take you to realize that you will never be profitable trading

    Suppose that I have a belief filter that is distorting reality. That is certainly possible. However, there has to be a way to explain it (and in this case mathematically). If you are buying stock at 50, then at 40, and then at 30 - your average is $40. And if you are selling at any number...
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    How long did it take you to realize that you will never be profitable trading

    Here is something I posted on a trading community Facebook page: With a 30k retail account, you would have to average 121% yearly return just to be part of the AMERICAN LOWER CLASS and your account would never grow All of these numbers are rather optimistic (read Unrealistic) MOST retail...
  20. R

    How much capital do you need as a new trader?

    200k out of that would be for living expenses for 5-8years while you are trading/studying 25k studying materials/books/back-testing software/programming courses then expect to blow at least a couple of 30k accounts some people claim they started with $500 and then within a year started to make...