Is it really possible to make money in this trading lark?

[anley]

Why is this Mr Billion character sharing all his personal financial details with his friends right down to the last £1.

Does he call you round for a drink and then just drone on and on about how much he's made, how rich he is and no doubt how poor and useless you all are. Does he then get his bank/trading statements out and give you all a copy to take back home with you? Talk about insecurity.

I don't know anybody who shares these kinds of very personal details with anyone. Also you should all realise that when most people talk about money they've lying. The clever ones (who make it) will always lowball you and the stupid ones (who don't make it) will normally always tell you how much they've got etc.

Bottom line, never believe anyone for financial looks can be very deceiving.

 

[LION63]

That is obviously what you would do as you seem to be so narrow minded and petty. Get a life and think of something more constructive. Call yourself a trader? You cannot see the big picture and that is why you are filled with envy. Would you like to see his statements in order to pin it on your wall?

I wonder if you have ever had a successful month.

 

[chump]

Was there some form of specific aim where this discussion was going ?

 

[LION63]

Chump

There was, until as usual a few selfish individuals decided to go off on a tangent and get shirty about it. Why they feel there is a need to hijack threads or make silly contributions is beyond me, but they are exercising their rights.

 

[SarahM]

Is it really possible to make money in this trading lark?

Maybe it would be useful if the name-calling came to a halt and this thread got back to it's initial purpose.

Perhaps this would help to move things forward. In my experience, name-calling only serves to make those who do so feel better about themselves.

Examples of successful traders could be used to highlight the possibilities/opportunities that are out there. Of course these are open to interpretation, as has been shown. There is nothing wrong with a healthy dose of cynicism, but to know there are guys out there who are doing very well from their trading starting with what may be considered a small investment may show a beginner that it can be done.

All the best with your trading.

 

[marketgeeni]

Thanks Sarah M

Intelligent Imputs Are Always Apppreciated

 

[LION63]

Maybe, just maybe. The original post by Kazza raised a number of issues of varying importance ie.

Risk/reward
Capital requirements
Types of trades
Stops & limits

It is the way one views and applies these and other factors (not listed), that determines the amount of money one makes. It is important to bear in mind that our comfort levels (in respect of risk tolerance) are different so whilst one trader may be happy to risk 10% of his/her capital, another might feel that it is not prudent. Secondly, many traders do not believe in compounding based on the sound principle that if a few trades go wrong one is back to square one and in some cases nursing losses.

 

[anley]

Hahaha

Yes, let's get back to what this thread was really about which is 'Is it possible to make money etc'

Not, 'it is possible to turn £1 into £1million (or make 1000's%) in a few months and anyone who dares to question this ridiculous statement is a loser who has no faith and imagination - Trading afterall is not hard all you've got to do is buy things that go up'.

 

[chump]

do I hear a new career calling me ?...how to stop a thread with one sentence.... LOL

Is it possible to make money etc..? Yes

can I make money etc? ........possibly

will I make money etc ..? .....maybe

can I be guaranteed to make money ..? .....no

 

[Vorpal]

The claims made previously are not as outrageous as they first appear. Having read the thread I would like to offer an explanation as to how it can be achieved.

A distinction needs to be made between a) someone starting with no positions open and b) someone already in a leveraged position…which is going wrong.

The trader in the latter example could be in the following position:

The trader decides XYZ shares, currently trading at £1 are going to fly when their results are released in 2 weeks.

He purchases £500,000 worth of shares in XYZ, margined at 10%. This requires a deposit of £50,000. This margin can be secured using CFD’s or spread betting in the UK. (I haven’t actually spread bet so the example relates to CFD’s)

On results day XYZ announces two major news items, firstly, a six month delay in production due to supply problems and secondly, the securing of a major new contract worth £XXXX.

At the opening XYZ drops 9.9% as the public panics and sells in response to the warning of a delay. At this point the trader receives a margin call as his account now shows a credit of only £500.

At the same time the smart money is sitting and watching, waiting for this panic selling to abate, realising that the second announcement has far greater significance to XYZ in the long run.

Once the selling has exhausted the smart money enters, resulting in a percentage gain at the close of 20%. Our trader now has his initial deposit of £50,000 + £100,000, from the 20% gain. Total £150,000.

Over the next 3 weeks others digest the significance of the good news released with the results and push the share price up by another 100%. Our trader’s position is now worth £1.2m.

At this point our trader decides to close the position realising a profit of £1.15m before interest and commissions.

This entire process has taken 5 weeks to unfold. During this time the trader’s low point was reached on results day where his account, shortly after the open, showed a credit of only £500, 3 weeks later it showed £1.15m an increase of some 230,000%.

My inference from Lion63 posts is that his friend has been trading since the 1980’s so I don’t believe he turned £500 into £2m from a standing start but instead accomplished this feat by some variation of the above.

Longshot666 seems to be approaching this from the position of; £500 cash in an account, with no positions on to £2m+ in 6 months, which I agree appears incredible.

In conclusion, maybe it’s a question of semantics.

PS: SarahM’s contribution would be even more plausible if it was a variation of the above and because of the leverage involved in options.


Rgds.

 

[LION63]

Vorpal,

That was a great post and very enlightening, the explanation was concise. However, my friend's case was slightly diferent as he actually had his switch card debited by the sum of £500 when his trading account had more or less a nil balance and he did not have any running trades.

However, what one should take from your example is more important than what my friend did or did not do; you have shown how by maximising the potential upside from a trade one can reap significant profits.

 

[chump]

Vorpal,
Nice example of a contarian strategy...buy the bad news and sell the good news....but,just so we don't get carried away by the narrative why did it actually yield a profit ?

 

[anley]

Vorpal

Sorry but your example is idiotic because with hindsight it's possible to make around 100 million % over about a decade. But this doesn't mean that it's remotely possible in real life.

 

[Trader333]

marketgeeni,

Why are you even remotely interested in strategies by Juanbyte when you have already said that Mr Million is a friend of yours and you could copy his strategy ?


Paul

 

[marketgeeni]

Trader 333
I Am Trying Very Hard To Not Say Anything Negative To You
So Hence This Is My Reply
I Am Asking To Compare Strategies We Already Know To His, To See If We Can Be Even Better Traders

Wake Up Trader 333 Stop Asking Silly Questions , I Am Sure There Are Some Very Intelligent Traders Reading These Posts Who Want To Exchange Intelligent Views , So If You Have Nothing Constructive To Say Go To The Comedy Threads

 

[chump]

With respect, I don't think trader333 was asking a "silly question"...starting from the point given previously that you have access to someone who has a strategy that converts £500 to £2.36m in 6 months...I think it was a 'fair' question , what do you think can be found that would improve on the aforementioned performance ?

 

[Vorpal]

your example is idiotic because with hindsight it's possible to make around 100 million % over about a decade.

The example I gave was designed to show how it is possible to make seemingly huge percentage gains in a short time. It would not be possible over an extended period.

The facts used in the example derive from personal experience. I adjusted the figures to more closely represent the amounts offered in this thread as my own experience involved an initial purchase of £50000 on margin.

If you look carefully at the example, you will notice that from the time of the purchase the share price actually only rose 120%. I have had several shares do that and more within a 5 week period.

You may have inadvertantly misunderstood my stance on this matter.

Rgds.

 

[longshot666]

how much more absurd can it get?

Another take on the facts
-----------------------------------

1) His "friend" has been trading since the 80's (a real pro)
2) He had his own office, had a clerk and secretary, made a lot of money in the markets
3) He then loses it all in real estate during the biggest real estate bull market of all time when any moron buying real estate made money
4) Now he only has 500 in starting capital??? pi*s poor broke, doesnt know when to cut losses apparently.
5) He then gambles a 400,000% percent return in just 6 months in the most rigged scam around: spread betting. Not only that, he manages to do this without the spread betting houses shutting him down like casino's do to card counters.
6) Lion said: "For those that think my friend will possibly go broke, do not hold your breathe..." But we already know he lost it all in realestate during the huge real estate bull market??
7) The icing on the cake... he makes 400,000% percent, and what does this genius gambler do? Thats right, he buys more realestate because he hasnt learned his lesson. LOL!

Anything sound fishy here? Naaaah... its all true, trust me. This story is water tight, cant you tell? You guys just dont have any imagination and are doomed to fail.

By the way, I dont care if you dont believe me, after all, my other "friend" with a whole 5 posts showed up to collaborate my mr millionaire story.

These internet boards where people pretend to be real traders just crack me up

 

[marketgeeni]

Longshot Kindly Make One Constructive Comment Pertaining To The Original Topic

 

[anley]

Great post Longshot.

Makes perfect sense to me.