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re: $500 a day keeps the day job away
Posted on 8/29/20 at 3:52 pm to Tigers4life
Posted on 8/29/20 at 3:52 pm to Tigers4life
quote:If by traders, you mean the most secretive and successful hedge fund of all time, Renaissance Technologies, founded by a mathematician using some advanced quantitative models (what I expected technical analysis to be) with over $100 billion assets under management.
There are traders beating the market average 5x or better on a consistent basis.
But it’s laughable to think getting over 50% returns even once in a while (or even once) is common, let alone on a consistent basis, even with entire teams of traders and investors with PhDs in statistics, mathematics, economics, finance, etc. with newly unlimited resources to research all forms of data and apply advanced models.
But whomever is consistently outperforming the market (even if just marginally), they’re definitely not relying on the nonsense on those indicators to do it, since the limited studies available using systematic and objective applications have shown that they don’t really outperform, especially considering the tax implications and over any extended period of time. And since most seemed to not even do it systematically or objectively (lots of bias creeps in), what usefulness they have, is not even applied in a useful manner.
quote:
Warren Buffett's 20% a year isn't that impressive anymore.
What? 20% isn’t impressive, despite doubling the market performance, which outperforms the failing hedge fund and daily trading markets by a considerable margin since most fail and those that don’t rarely beat the market.quote:The failure rate is not random though.
Guess I'm another random statistic.
1
Posted on 8/29/20 at 4:18 pm to buckeye_vol
Ok so what is more consistent? A day trader trading short and long averaging 7-8% a month portfolio growth ytd with no losing months or a buy and hold investor making 100% gains during a historic bull run? And Phd's don't mean squat. They cloud there minds with so much old school economics and yield curve type bs...they can't see the daily price action. Ask the ones that program the algos if you want to learn.
Posted on 8/29/20 at 4:25 pm to natsoundup
quote:
You will get killed in a down market
Just playing with this on paper, but that's why it is advisable to keep one eye on SPA and keep working the limits and stop triggers.
It seems the gotcha is how long it takes to get settlements if you have limited cash in play. I don't see any way around that without adding a good bit of risk.
Posted on 8/29/20 at 4:32 pm to jangalang
Flat markets are worse than bears for trading
Posted on 8/29/20 at 5:02 pm to Tigers4life
quote:
Times have changed and Warren Buffett's 20% a year isn't that impressive anymore.
Maybe 20% isn’t impressive when you’re trading 100, 1k, or even 10k a pop, but once you start talking large sums (250k and more) it becomes extremely difficult to maintain large returns due to shallow market liquidity. You have to get a lot more imaginative and take longer positions to deploy all of your capital and not get bitten.
Posted on 8/29/20 at 5:27 pm to Decisions
quote:
Maybe 20% isn’t impressive when you’re trading 100, 1k, or even 10k a pop, but once you start talking large sums (250k and more) it becomes extremely difficult to maintain large returns due to shallow market liquidity. You have to get a lot more imaginative and take longer positions to deploy all of your capital and not get bitten
Agree 100%...really large portfolios are a totally different animal so I may have understated his accomplishments managing so much money.
Posted on 8/29/20 at 6:22 pm to Decisions
quote:
but once you start talking large sums (250k and more) it becomes extremely difficult to maintain large returns due to shallow market liquidity.
I have 250K in individual stocks right now, that ain’t shite.
I buy and hold not trade but still I’m only making 10-15K bets at a time.
of all the ways to make 500 bucks a day I’m thinking trading 250 large at a time is the worst way to do it
Posted on 8/29/20 at 7:47 pm to cgrand
quote:
I have 250K in individual stocks right now, that ain’t shite.
I was talking individual trades. I would agree, 250k as an account isn’t massive, but you should only be trading that much a pop if you have an account in excess of.....likely 10 million imo.
It’s definitely not the easiest way to get 500 a day. I’d just plop that money down on some managed investment property and watch the cash roll in.
Posted on 8/30/20 at 6:47 am to buckeye_vol
(no message)
This post was edited on 9/4/20 at 2:08 am
Posted on 8/30/20 at 4:38 pm to el Gaucho
quote:
What are you some kind of gay bear hiding your gains in your cave? I showed my Etrade to a group of girls at the bar last Saturday unfortunately it was stuck on -4K from Friday because you retards sold me on grwg
You belong here.
Posted on 8/30/20 at 4:45 pm to tokenBoiler
Well shite he could’ve easily gotten -4000 with Tesla. Entries and exits still matter. Not all stocks are like FSLY and run from 22 to 102.
Posted on 8/31/20 at 8:32 am to LSURN98
quote:
Curious what the options master Jag_warrior has to say.
Thanks for the shout out.
I’d say, based on people who truly are experts (like Tom Sosnoff), that it’s best to focus on percentage gains (or losses) rather than raw $ amounts. And although the overwhelming majority of what I do is based on being a net seller of premium in high IV percentile environments, putting a small percentage of a portfolio into speculative long option positions isn’t a bad strategy. Losses are limited and gains are infinite, with the leverage providing crazy percentage returns. That’s what you’ve seen, right?
In the post before yours, thatguy777 mentioned money management being key. And I totally agree with that. IMO, no one should be using the anomaly that 2020 is to gauge the success (or failure) of any trading strategy. But over time, backtesting various strategies can show what typical returns *should* look like. For what I do, 20% is about average. But I’ve had 40%+ years and I’ve had losing years. Part of money management is seeing what a strategy looks like from peak to trough over time.
I invest in stocks, but don’t really trade them. But if I did, I’d work to develop a long/short strategy, and probably one(s) that also included options for hedging purposes. A few months ago, I mentioned a guy that was on Chat With Traders awhile back. His interview is a good and entertaining listen. His name is Bao. He’s a little spastic, but he’s worth paying attention to - he went from a six figure engineering job to making over a million a year with not that much money starting out (upper five figure account as best I recall). But he was gaming less experienced Robinhood type traders in micro caps and the OTC markets. He grew to be a shark feeding on naive fish, as he put it. So that was his edge. My edge is selling high IV and waiting for a reversion to the mean, or IV crush after earnings announcements. Finding an edge over time is key too.
Good luck to all.
Posted on 8/31/20 at 8:50 am to cgrand
So, $350 a day net give or take?
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