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ducati916, thank you for your kind words..
William Shakespeare once said
"The Eyes are the window to your soul"
From my experience
"The words people use are a window to their soul"
Skate.
While Skate, I'm sure is quite capable of defending himself if he so chose, I will do so as in my short time of reading his posts I have found him to be exceptionally polite and patient.
Also there are some rather obvious lessons to be learned.
So:
"I was not expecting a diatribe from you just a simple response. "
I suggest you look up the meaning of the underlined word.
"Addressing me by name once is sufficient, twice is permissible any more than that sounds condescending. Avoid over using someone's name, it is rude and sounds manipulative."
I would disagree.
"My father owned an engineering company. It convinced me it is a fool's path."
As a 'trader' you are self-employed. You are a 'business', unless you are employed to trade for someone [bank/hedge fund/etc].
On a bigger picture basis: without those who engage in business, we are back to hunting/gathering. Only through specialisation/diversification of production can we continue to consume: which by definition means someone has to create and run businesses. If you are an 'employee' you are employed by a business owner.
"I learnt from my father running your own business was totally rdiculous and not worth the effort."
Such a generalisation is both ill-informed and disrespectful to those that do.
"Loans are poison, you dance to another man and the economies tune.
When the relationship breaks down, often your family have no where else to go and no means to leave because all your assets are 'in the business'."
A 'loan' is a tool like any other. It can be prudent, it can be dangerous. Again, simply a generalisation without merit.
"Bingo, that is my #1 FA indicator for a strong business. See FA isn't so hard if you think about it Skate!"
As has been demonstrated on another thread, recognising legitimate cash-flow from simply cash-flow, is not as straightforward as one might imagine.
"There are some emotions I can't feel. Fear is one of them, it just converts to the feeling of power. I quite welcome failure, it is a great teacher."
Possibly you are unique in the human race.
"If you have fear, you clearly don't have confidence you know what you are doing. If you don't know what you are doing, don't trade."
Skate is referring to a 'business', not to trading. Even if it were 'trading' as a business, if you have quit your job, have taken your savings/loan/whatever and undertaken the business of trading, if your trade expectancy is below that initially contemplated and the rent/mortgage/bills/etc are due [as they always are], I would argue it is only natural to feel stress/fear.
I would seriously consider tendering an apology to Skate.
jog on
duc
This thread is a thread of wisdom and learning. My takeaway lesson from all this is: don't pi$$ off Ann!
Discretionary
6/10 at 3R wins
4/10 at .7R losses
Systematic
4/10 at 5.6 R wins and
6/10 at 1 R losses
Skate have you had much exposure to Nick Radge?
I have read every article, listened to every podcasts & viewed all his video's I have found on the internet & what was on his old website.
I hold Nick in highest esteem as most. I really enjoy his plain speaking approach to trading. (I have never met Nick Radge but I have spoken to him)
Skate.
Failed heaps of times
No fear of failure it’s expected
This is profound and once one understands it, the fear is no longer. Thanks for saying as it is, appreciated
How many trades a month/year on average for each?
There is minor failure and catastrophic failure... minor failure is expected ...not many take on so much risk to risk catastrophic failure.
A lot of what you have posted, or beliefs adopted about trading sounded familiar
Why would you expose yourself to catastrophic risk.
All good.
Discretionary
6/10 at 3R wins
4/10 at .7R losses
Systematic
4/10 at 5.6 R wins and
6/10 a5 1 R losses
Varies I trade discretionary spasmodically as time and conditions look ripe
I’d say around 10 a month
Systematic
50 ish a year
I wouldn't knowingly...my point was that expecting failure needs to be put into context.
**** happens
willy1111, I'm with you, no one knowingly puts themselves in harms way but no matter how smart we are, or how hard we work, we will regularly be hit by news, circumstances, and developments that are unforeseen and the stock market gods will periodically use us for their entertainment, and there is nothing we can do to prevent it, so we have to be ready and mentally prepared to realise drawdowns and losses are part of the trading process, so take it on the chin & be the ‘best loser’ you can possible be.
Skate.
Rationally you wouldn't but avoiding catastrophic risk first requires that you understand the risk exists.Why would you expose yourself to catastrophic risk.
But all in all I have come to a similar conclusion as Skates to my approach to the markets...mechanical coded trend following strategy.
willy1111, do you trade a weekly or Daily strategy ?
So help me understand this in some context, if the average risk R is 2% of capital (often widely touted in trading circles as acceptable risk per trade).
Per 10 trades Discretionary would be (6 wins x 3 x 2% risk = 36%) less (4 losses x 0.7 x 2% risk = 5.6%) = net of 30.4% return on capital per 10 trades which you say you might do per month. Just 3 months a year of this would produce 90% return on capital per year.
And
Per 10 trades Systematic would be (4 wins x 5.6 x 2% risk = 44.8%) less (6 losses x 1 x 2% risk = 12%) = net of 32.8% return on capital per 10 trades which you say you might do 50 ish a year which would produce 164% return on capital per year.
Have I got that right? or am I missing something?
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