'Great' traders

[wasp]

Socco is too egotistical to come back in the guise of a 'quoter'. If he were to return he'd want the world to know about it!

 

[counter_violent]

Socco is too egotistical to come back in the guise of a 'quoter'. If he were to return he'd want the world to know about it!

I thought this thread was about great traders

All that is needed to keep the black swan at bay is a rolled up copy of the F T !

 

[wasp]

I thought this thread was about great traders

All that is needed to keep the black swan at bay is a rolled up copy of the F T !

Ahhh, well, its actually about 'great' traders so Socco fits quite well I think!!

 

[trader_dante]

:idea:

You're becoming a real bore.

 

[wasp]

What really makes a 'greeat' trader?

Is a great trader one who can be judged by their bank balance at death or retirement, irrespective of the journey... Or is it those for whom the journey is the key?

Many 'greats', alive and dead, have vast sums and made a fortune in the markets. As FXSCALPER has pointed out elsewhere, we don't know the progression of each trader but taking Livermore for an example, we know his account fluctuated wildly to say the least.

So what is 'great'? An (eventual) rich man or one whose yearly statements would make your bank manager fap vigorously?

We will never know just how people like buffet got to his current status? A few lucky punts making all the difference or if he progressively, consistently made a strong growth over the years.

For me, a great trader is not one who makes the odd killing and vast sums but could lose it the next day, it is the consistency that counts. The consistency shows not only a solid grasp of money and risk management which are vital, but one who constantly, day in and day out, make a solid % return.

Anyone of us could have shorted GBPJPY at a grand a point in July last year and made £8,500,000... Does that make us a good trader? The trader then may go on to lose for the next 6 months as the market doesn't move so beautifully!

If someone was to produce a trading statement with the above, and another that made only half the amount, but they had a +60% strike rate, trading every day or couple of days, using sensible risk and money management, who would you rather invest with?

How many of the 'greats' fit in the latter category?

 

[ccclarette658]

You're becoming a real bore.

You are pointedly rude, aren't you ? What is worse is that you seem to view your failings as a virtue.

 

[trader_dante]

I discovered something else, and that is that suckers differ among themselves according to the degree of experience.

..the next, or second, grade thinks he knows a great deal and makes others feel that way too. He is the experienced sucker, who has studied - not the market itself but a few remarks made by a still higher grade of suckers.

 

[Joey25]

Is a great trader one who can be judged by their bank balance at death or retirement, irrespective of the journey... Or is it those for whom the journey is the key?

Many 'greats', alive and dead, have vast sums and made a fortune in the markets. As FXSCALPER has pointed out elsewhere, we don't know the progression of each trader but taking Livermore for an example, we know his account fluctuated wildly to say the least.

So what is 'great'? An (eventual) rich man or one whose yearly statements would make your bank manager fap vigorously?

We will never know just how people like buffet got to his current status? A few lucky punts making all the difference or if he progressively, consistently made a strong growth over the years.

For me, a great trader is not one who makes the odd killing and vast sums but could lose it the next day, it is the consistency that counts. The consistency shows not only a solid grasp of money and risk management which are vital, but one who constantly, day in and day out, make a solid % return.

Anyone of us could have shorted GBPJPY at a grand a point in July last year and made £8,500,000... Does that make us a good trader? The trader then may go on to lose for the next 6 months as the market doesn't move so beautifully!

If someone was to produce a trading statement with the above, and another that made only half the amount, but they had a +60% strike rate, trading every day or couple of days, using sensible risk and money management, who would you rather invest with?

How many of the 'greats' fit in the latter category?

How does the trader's performance compare against:

price of time + (price of risk x amount of risk taken)

or, put another way:

how does the trader's Sharpe ratio: (return - risk free rate) / volatility of returns
compare to current benchmarks?

Hedge fund vacancies typically look for track records with Sharpe ratios in the order of 2-3.

Livemore, of course, didn't have the benefits of these concepts when he was trading.

 

[Serenity]

Hi Wasp,

Nice post on the Livermore lifespan... can you share though - his achievements in the actual 1920s dollars - without adjusting for 2009 inflation ?

Best regards.
Serenity

 

[PualoP]

Hi Wasp,

Nice post on the Livermore lifespan... can you share though - his achievements in the actual 1920s dollars - without adjusting for 2009 inflation ?

Best regards.
Serenity

Those are the un-adjusted figures. He made those sums of money in the 1920s, blows the mind doesn't it, literally for Livermore!!

 

[Serenity]

Those are the un-adjusted figures. He made those sums of money in the 1920s, blows the mind doesn't it, literally for Livermore!!

at the top of the Post by WASP - he states that the earnings are inflation adjusted... I dont think livermore made $1.2 billion in the 1929 crash - was the market total value around that amount ?

From his book i recall he said he made around $100mil due to the crash...

So i wonder what are his earnings numbers in that timescale IF NOT adjusted for inflation...does anyone have those figures ?? (WASP - do you ??)

Best regards.
Serenity

 

[montmorencyt2w]

Wasp can't answer. He'll just have to get one of his multinicks or one of his support group to reply on his behalf.

 

[counter_violent]

Wasp can't answer. He'll just have to get one of his multinicks or one of his support group to reply on his behalf.

What support group
They probably all abandoned him after judgement day.

 

[Silversea]

Yeah, 121,165% in one month, that is a great trader ! :

http://tradertopgun.blogspot.com/