$10,000 into 18 million in 18 months!

[jersey10]

Heres a short video of an interview on how he trades.

http://video.google.com/videoplay?docid=7710736047622561973

good link thanks.

I assume most hedge fund managers use a combination of technical and fundamental analysis as Dan Zanger seems to.

 

[jersey10]

well just read the article from Timmy, and it seems Dan Zanger is more of a technical analyst than fundamentalist

 

[Stormin_Norman]

the joy of compounding returns.

 

[bowman]

I've lost the original link but I found this table online recently.

If you can return 5% a week and then compound your trades you will turn $10k into $120k in 12 months.

What the hell, I thought, I'll play.

I just completed week 7 and am ahead of the curve with a balance of $14355.

I suspect it may be quite difficult to maintain this over a year : but I'm always up for a challange.

If I haven't fallen flat on my face by week 13, I'll post a spreadsheet of my progress.

 

[Timmy]

I've lost the original link but I found this table online recently.

If you can return 5% a week and then compound your trades you will turn $10k into $120k in 12 months.

What the hell, I thought, I'll play.

I just completed week 7 and am ahead of the curve with a balance of $14355.

I suspect it may be quite difficult to maintain this over a year : but I'm always up for a challange.

If I haven't fallen flat on my face by week 13, I'll post a spreadsheet of my progress.

Goodonya Bowman - good luck. Sometimes a trader's best friend is a challenge/goal.

 

[Temjin]

I've lost the original link but I found this table online recently.

If you can return 5% a week and then compound your trades you will turn $10k into $120k in 12 months.

What the hell, I thought, I'll play.

I just completed week 7 and am ahead of the curve with a balance of $14355.

I suspect it may be quite difficult to maintain this over a year : but I'm always up for a challange.

If I haven't fallen flat on my face by week 13, I'll post a spreadsheet of my progress.

To turn $10,000 into $18 million in 18 months, you only need to generate a consistent return of 51.652% per month and compound the profit. Or 10.97% per week.

In another 18 months, you would have turned the $10,000 into $32,276,718,000.

And in another 18 months, it would be $58,097,297,000,000.

So if anyone could make this challenge, he/she would have the ability to pay for the cost of the global bailouts / stimulus packages paid so far 10 times over in just 4.5 years. (assuming $5 trillion spent already)

The joy of compounding, yep.

A bit bored right now. haha

 

[Trembling Hand]

compounding $1000 at 10% a day ........ very easy

Compounding $10,000 at 10% a week ..... easy

Compounding $100,000 at 10% a month ..... is what a trader should be able to do.

Compounding $1,000,000 at anything other than single figures per month requires a lot of skill.

doing anything with $10,000,000 needs a great deal of skill AND a very deep market OR just the right amount of luck.

 

[Sakk]

compounding $1000 at 10% a day ........ very easy

Compounding $1,000,000 at anything other than single figures per month requires a lot of skill.

doing anything with $10,000,000 needs a great deal of skill AND a very deep market OR just the right amount of luck.

TH or to FX traders,

What is the limit to the number of contracts you can trade in the EUR/USD before getting slower execution or slippage?

Assuming a trader can consistantly make an average of 50 pips per week on the eur/usd on a $10,000 account (intraday swingtrading), is the following possible with a $1,000,000 account?
- trading 100 full contracts @ 50 pips per week = $50,000 USD or 5% return = 20% return per month

or

on a $10,000,000 account, trading 1000 contracts?

At what point would this fail? I'm not assuming that we compound the account, just want to know at what point or account size or number of contracts would this fail.

 

[Timmy]

on a $10,000,000 account,

You can go to interbank dealers direct for pricing on this sort of amount (get a credit limit etc.), hardly a drop in the bucket.

 

[Trembling Hand]

TH or to FX traders,

What is the limit to the number of contracts you can trade in the EUR/USD before getting slower execution or slippage?

Assuming a trader can consistantly make an average of 50 pips per week on the eur/usd on a $10,000 account (intraday swingtrading), is the following possible with a $1,000,000 account?
- trading 100 full contracts @ 50 pips per week = $50,000 USD or 5% return = 20% return per month

or

on a $10,000,000 account, trading 1000 contracts?

At what point would this fail? I'm not assuming that we compound the account, just want to know at what point or account size or number of contracts would this fail.

The thing is when you move away from bucket shops you can't just hit the "BUY" button. Your actions actually move the market. Your stops aren't just closed out. You have to work out of positions. If your trading 250 - 500 a tick and move to the real market you will probably have to learn some new skills.

I don't know any market where you can trade 1000 contracts without working orders. Maybe the ES, Maybe.

You can go to interbank dealers direct for pricing on this sort of amount (get a credit limit etc.), hardly a drop in the bucket.

the problem is though Timmy you can leverage 1 mil no prob to end up trading 10 mil positions but leveraging up 10 to trade 100 mil positions you now have to trade in a completely different way.

The percentage gains we are talking about are because we use leverage and actually trading 10 times the account.

 

[Timmy]

the problem is though Timmy you can leverage 1 mil no prob to end up trading 10 mil positions but leveraging up 10 to trade 100 mil positions you now have to trade in a completely different way.

Absolutely agree.

 

[bowman]

Goodonya Bowman - good luck. Sometimes a trader's best friend is a challenge/goal.

Cheers Timmy

The compounding figures are quite seductive I suppose, particularly as I am a shor term trader by nature. At the moment I am mostly daytrading but I am thinking that a good way to make this system work is to try and find short term swing or turning points and then capture 2-3 day moves.

I'm playing around with various scans and indicators to find these moves within the various sectors.

I think the beauty of aiming for small gains (providing I can do it consistantly and keep losses to an absolute minimum) is that short term gains of 5-10% can be achieved right across the All Ords.

This is important because as the weekly trading capital increases I will need to expand my focus towards mid cap & blue chip stocks - as well as the small caps and speccies that I am trading now.

I just did a new table with a 6% weekly gain rather than the 5% gain and the 12 month target gain moves from $120k to $207k.
LOL