How to easily make 1000 % per Year !

[zupcon]

Err no, that was me ;-)

You are all interchangable.

 

[everyonerich]

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

join propboards.com, theres a chatroom

 

[oildaytrader]

join propboards.com, theres a chatroom

Above site has no track record.

It is actually better to set up automated alerts when trends breakout.This can be done on metatrader, program your set ups criteria and set variations.It will give alert sounds when signals criteria are met.

 

[Rossini]

You are all interchangable.

If you have any suggestions for best threads (in General trading chat) let me know...

 

[Black Swan]

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.

 

[bedsit]

100% a year – it's nothing special IMO.

Few months ago I made more than £6000 in less than 24 hours on £10000 account.

Must point out this was a demo account.

After that haven't heard from SB company that was hassling me to open real account with them.:clap:

 

[Splitlink]

Demos are BS. When one has real money on the table the fear factor comes into the equation. Trading with low stakes is better and it is easier to get high porcentage increases. However, IMO, a trader with £10000 in the account is unlikely to double his money within 24 hours. If he does, he'll lose the lot in the end and sooner, rather than later, because of the type of character that he has.

 

[Hoggums]

100% a year – it's nothing special IMO.

Few months ago I made more than £6000 in less than 24 hours on £10000 account.

Must point out this was a demo account.

After that haven't heard from SB company that was hassling me to open real account with them.:clap:

There's simply no point in trading this way because it only takes one day of bad trades to wipe out your account, even if you do it for 20 days in a row and make £2m, that does not make you a good trader if you blow it all the next day.

As spit says - trading demo is meaningless. It's not your money and demo systems tend to only update after 5-10 secs, smoothing out the spikes, whereas with live systems the prices are moving continuously.

Back to the original post. You cannot expect to win 50% of your trades with a 50pnt stop and 100 pnt limit by chance. This would require an extreme edge over the market. It would simply never happen by chance.

 

[DionysusToast]

There's another consideration too.

Time = Money or not if you disagree.

You oft hear that 20% a year is a great return but that's never backed up with the time invested which I think is another important parameter.

On one extreme, you could have a trader that just looks at the markets over the weekend and enters his orders for the week on a Sunday night. On the other hand, you could have a day trader that's spending 8 hours a day watching the order flow and trading accordingly.

In the 2 scenarios ? Is it fair to say that 20% return is 'great' or should the time employed also be a factor ?

I know scaling comes into it- but if you ignore scalability - how should time be considered ?

 

[bedsit]

Of course I wouldn't use that sort of leverage on my real account.

IMO Good starting point is 1% or less of the equity. Once being consistently profitable (for 6 months) one can go up to 5% of equity risk per trade (account wipe out in the case of 20 losing trades in a row)

Anyway that's theory – in practice still straggling to apply it.

 

[oildaytrader]

There's another consideration too.

Time = Money or not if you disagree.

You oft hear that 20% a year is a great return but that's never backed up with the time invested which I think is another important parameter.

On one extreme, you could have a trader that just looks at the markets over the weekend and enters his orders for the week on a Sunday night. On the other hand, you could have a day trader that's spending 8 hours a day watching the order flow and trading accordingly.

In the 2 scenarios ? Is it fair to say that 20% return is 'great' or should the time employed also be a factor ?

I know scaling comes into it- but if you ignore scalability - how should time be considered ?

Depends on how many billions $$$$$$$ traded by a single trader.

 

[thos]

The easiest way to get that sort of return is to buy a lottery ticket. You could win €5m from a €1 ticket. However, the vast majority of players will lose money - the probabilities are against you. Rather than the best case scenario it is better to focus on probable returns and drawdown.

I have noticed from this site:
Few people make money
Most people trade forex in direct competition with the big institutions and without an edge.
Any idiot could have made good returns from position/short-term investing in the stock markets in 2009.

So why are most posts about daytrading forex?

 

[Splitlink]

The easiest way to get that sort of return is to buy a lottery ticket. You could win €5m from a €1 ticket. However, the vast majority of players will lose money - the probabilities are against you. Rather than the best case scenario it is better to focus on probable returns and drawdown.

I have noticed from this site:
Few people make money
Most people trade forex in direct competition with the big institutions and without an edge.
Any idiot could have made good returns from position/short-term investing in the stock markets in 2009.

So why are most posts about daytrading forex?

I don't know from where you have got the idea that few traders on this thread make money. On one side are traders who say that 1000% is unlikely, but that does not insinuate that traders do not make anything at all.

As far as forex v.indices are concerned, that's preference.

 

[oildaytrader]

The easiest way to get that sort of return is to buy a lottery ticket. You could win €5m from a €1 ticket. However, the vast majority of players will lose money - the probabilities are against you. Rather than the best case scenario it is better to focus on probable returns and drawdown.

I have noticed from this site:
Few people make money
Most people trade forex in direct competition with the big institutions and without an edge.
Any idiot could have made good returns from position/short-term investing in the stock markets in 2009.

So why are most posts about daytrading forex?

Nobody has an edge in forex,not even the big boys.That is why crooked banksters don't speculate on currencies.

Ever hear of any investment bank speculating on forex?

 

[zupcon]

Nobody has an edge in forex,not even the big boys.

What a ridiculous thing to say.

 

[oildaytrader]

What a ridiculous thing to say.

I meant that crooked edge of inside information etc that wall street heavily relies on

 

[bedsit]

This is better from FX trader's perspective - prefer 1000% as opposed to miserly 100%

 

[zupcon]

I meant that crooked edge of inside information etc that wall street heavily relies on

Thank god for that, I thought you'd taken leave of your senses there for a moment

 

[Paul71]

It most definitely does not require rocket science, it does not take some elusive quant algorithm you need to invest lots of PhD work hours and millions into hardware on first, no, all it takes is a simple, robust system that is compoundable.

It doesn't even need a high win rate NOR a high Risk : Reward ratio.

What is perfectly sufficient to achieve the stated objective is by trading a system that - on average, as always - wins "only" 50% of the time...

offers a Risk : Reward of 1 : 2...

a system that is based on very conservative and extremely feasible assumptions in other words...

a system that gives you say 2 trades / day...

which in reality is again extremely conservative just for the sake of this argument (in reality one should be able to get lots more signals with a system that has such parameters than my example of only two)...

a system that has you risking no more than 1% of your account per trade, which again is extremely risk averse...

You now have a system with which on average you have one losing trade per day, which loses you one percent of your equity, and one winning trade, which wins you two percent of your equity, and that leaves you with a net profit of 1% for your trading day.

Make on average 1% per day, and, just to err on the conservative side again, we will not compound that, but downplay the possible results, and end the month up 20%.

Now lets enter the power of compounding, which is the short term traders by far greatest weapon in their arsenal.

Compounding 20% gains per month for a full year, translates into overall gains for your book at year's end of a mind boggling, staggering 1000% !!!

Keep that up for a few years and you are well set to achieve absolutely whatever objectives you may have for yourself, trade a system that you can compound, and there are absolutely no limits - outside of yourself and your own potential inner fears and limitations - at all to keep you from achieving whatever you may wish for.

Of course one needs to keep in mind that with growth of your assets your returns will diminish over time.

Making 1000% / year is extremely feasible with say 50K, but somewhat less so if you've managed to compound up to 100 mill, let alone if you're up to trading with 1 billion.

The very best of the hedge funds with assets of around there can therefore be very satisfied already with an average annual compound rate of return of around 30% p.a

But even there the odd superperformance is still feasible, as Taleb proved with his one billion dollar hedge fund that returned 110% last year.

Or just have a look at TraderDaily and their top earning traders list of 2008, eg top dog John Paulson, who is running 9 daughter funds of cumulatively around 29 billion - one of his funds started out at 130 million in 2007, and he turned that into 3.2 Billion within ONE single year - earning himself a total of 3 billion cash in the process.

THAT is ALL trading is about, NET PROFITS that are COMPOUNDABLE.

You do not need the Holy Grail.

You do not need to be able to predict what markets do next.

All you need is to tweak the only aspects of trading we have influence over, when we enter, and when we exit, in a way that offers us a positive expectancy.

All you need is a simple, robust and above all Compoundable System with a Winning Percentage of no more than 50%, a Risk : Reward of no more than 1 : 2, Trade Opportunities of a lonely 2 trades per day, and Position Sizing that has you risking no more than a paltry 1% that any self-respecting, gunslinging gambler would probably laugh his head off at, in order to achieve whatever you want, and be it the sky !

=================================================================================

EDIT for further clarification:

PS, we are talking ON AVERAGE here...

that means some days you may have 5 losses in a row, the next day you get 3 winners in a row, followed by another loss the day after, and then followed yet again by another 4 winners the day after that, etc etc...

OF COURSE one does not have exactly 2 trades / day, one a winner, one a loser, that is just what you on AVERAGE end up at with a system that is right only 50% of the time, and only has a risk/reward of 1:2.

BSD,

A 10k account, 2hrs per day effort at min wage (£5.80/hr), plus comms/spreads (1 trade/week), plus beat 5% bank interest.....a person would need 40% return just to break even....in the real world that is.

I would go as far to say that most people on this site haven't even got 10k to trade with.

 

[montmorencyt2w]

Any idiot could have made good returns from position/short-term investing in the stock markets in 2009.

Thanks. I must tell this to the managers of my stock-market-based ISA funds, which only did about as well as a poor building society account, if that.