No leverage? Now here’s a man with potential!
Keep it up. If I can get this together well then you never know what can happen!
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I know it sounds crazey especially to the gamblers out there. But all I am looking for when I trade is consistency, not the dollar amount. I have a huge account ( not my own) and 1% goes a long way in the lifestyle I live. I know leverage brings a lot of returns but, I do not want to find myself suffocating during losing streaks. I trade under a set of risk parameters, that if violated, I could lose my account, which is my bread and butter. So why leverage the account and risk suffocating myself, if I can still make a living without leverage? That’s how risk averse I am.
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After my last post I was about to go do something but something occurred to me and that I think is worth at least mentioning.
Instead of us being at odds with each other: why not let’s rather try come up with ways of funding traders with decent amounts of capital so that they can indeed make modest (on a percentage basis that is) but sustainable and possibly livable gains (which is pretty much what the topic of this thread was before I came along losing my you-know-what). That’s been something I’ve thought about for years but, well, life happens so nothing ever came of it. There has to be a way to do it. I’ve just not figured it out yet.
My main reason for the above:
This virus has taken its toll on South Africa in a BIG way. And trading, if approached correctly in all respects, could indeed be the financial savior of many if not millions. It’s one of the very few jobs in the world that requires nothing more than an Internet connection, education, and a decent broker. Our unemployment figures are ridiculous. And don’t quote me on this but the last time I checked I think the figure was something along the lines of 80% of UNIVERSITY GRADUATES will not find jobs in spite of their qualifications and hard work. But lack of access to capital is a problem. But there has to be a way.
I do have one or two ideas that may FACILITATE this. But maybe some have thoughts on this.
Just putting this out there (as it actually does pertain to the topic of this thread).
That is pretty a good idea. I have had the same thought for a long time, but I had and still have my own financial struggles to deal with. (as opposed to what most think of traders). However, My thoughts have already been in motion ever since I got my first funded account. There are a lot of young people who could be turned into full time traders out there. All they need is proper education and funding. I say this because, I have educated one kid, who recently passed a prop trading test, and is doing pretty well for himself. So, this could be done to every other kid out there, who is struggling to get a job.
Your idea is pretty good and I for one would join you if you decide to pursue it.
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consider a trader who starts with 100$ and can earn 20% consistently. He can be a milioner after 51 months. (1.2 ^ 51) * 100 = 1,092,053
compound interest is the answer. using high leverage and low patient will make him a looser.
I think 10% to 20% is excellent.
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That’s a great Idea…
Stocks options are great tool for hedging, not sure about FX options. You can try to trade some uncorrelated FX instruments like safe heavens + risk assets if you want to achieve hedging. Basically it relies on statistics so it’s not easy to implement if you don’t have enough data for backtesting.
There is no specific answer to this. There are only 5 possibilities as outcomes in trading:
Big win
Big loss
Small win
Small loss
Breakeven
As long as I am avoiding big loss, I am good.
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This is my benchmark:
12% annualized with a max DD of 30% (so not low risk…)
This is the reality, everything else is a dream.
I would be very happy to be proven wrong with a long and verfied trackrecord better than this.
This a real pro, that makes money trading and managing other people’s money.
He charges only performance fees so when there is a losing year he doesn’t make money.
He doesn’t sell courses or books.
As long as you don’t have any unrealistic targets, it is okay to have a lower expectation. 10 percent is just fine but always be prepared for anything in forex.