Australian (ASX) Stock Market Forum

My trading - how I trade for a living

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rmt said:
@ tech/a

I will have a look to find the figures, but like I said i am doing for 10 years and I know it works.

Please read with more attention. Without a return of over 1.2 R

My trading starts with a test position and some positions will work out and I will add up. These are the positions which makes huge R multiples but of course I dont have them every day.

Do you trade for a living? Please tell me a little bit more I am curious.

I am calculating with brokerage fees I exactly know how important it is.
Click to expand...

I'm sorry I was un aware that you had to meet your reply criteria to be involved in discussion.
No I don't trade for a living----dont have to----don't wish to----infact couldnt think of anything worse.

Successful trading is as boring as watching paint dry!!!
I use it as one of my passive income streams.

Oh and I'll be sure to " pay attention "
 
tech/a said:
I'm sorry I was un aware that you had to meet your reply criteria to be involved in discussion.
No I don't trade for a living----dont have to----don't wish to----infact couldnt think of anything worse.

Successful trading is as boring as watching paint dry!!!
I use it as one of my passive income streams.

Oh and I'll be sure to " pay attention "
Click to expand...

Spot on, that's why some write books or spend much of their time writing articles (or in my case writing blogs as no one wants to hear my views, let alone pay for them) or running tip sheets. There is a need to be ruthless, totally uncaring, absolutely disciplined, and for many 'two-faced' to boot.
 
howmanyru said:
Well, weird thread but I might join in anyways. I want to trade for a living, but have not been sucessful so far. My new approach is to follow very closley only a couple of stocks and get to know them intimately. I feel you can reasonably get to know the way a stock moves if you spend a LOT of time observing it. You don't need many stocks for trading, if you can trade one well it's all you need. So I am trading only AUT for now because I feel I know this stock very well. My plan is to take small profits often where as I used to hold for months to try and make more profit. This approach has mostly only frustrated me as the SP wandered up and down, up and down. My last trade on AUT saw a $730 profit in 5 days, in at $3.41 and out at $3.61. I was tempted to hold for more but will see how this shorter term approach goes. Been trying for 7 years to turn pro, maybe i should give up ? Nah, It's a whole lotta fun.
Click to expand...

I am a full time stock trader and I would offer you a different approach.

1. Know many stocks and know what moves them.
2. Read plenty of news, forums, stock announcements etc.
3. Understand stocks and their inter-relatedness.
4. Monitor a shortlist 15-20 for the any day. These are usually ones with announcements overnight/in the morning/the day before, or major broker upgrade/downgrades, or major moves the day before, or major news in a related stock.
5. Watch the market depths and trade with the flow.

News and movements generate flow. While you might have a view on what the flow "should" be, always trade what the flow actually is. Easier said than done but that's what separate amateurs and professionals.

Incidentally I do know one other trader who trades only one stock, but I have little idea if he's successful or not.

I do concur that, if you wish to focus your energy on just one instrument, make it a futures contract. In case you are wildly successful, AUT will probably only make you so much money.
 
tinhat said:
Hi rmt. Thanks for posting the charts. what do you mean by "moving days"?
Click to expand...

Mabye I've missed where you discuss this - but you obviously have an algorithm that identifies a "moving day". Can you explain what you mean by "moving day" a bit?
 
@tinhat

I am sorry I forgot to explain that. A moving day is a day with the reversion of demand. These days are interesting because they could be the start of a good setup. I try to explain it better with a chart at the weekend
 
baby_swallow said:
You must have a very large account to earn yourself a living on this one...;)
Click to expand...

I too am disappointed.
If youve been trading for a living youll have every conceivable
stat about your trading method at hand.

Strangley the only one quoted is 62% win rate.---which hasnt been currently supported.
Even with this we dont know if its the last years win rate or over the last 10 yrs.

To have the stats from a trader who has traded for 10 yrs made available would be very insighful to those wishing to do the same in the future.
It would be great to see if all years were winning years if drawdowns varied
If certain years out performed others.
If win rates varied year to year.
If $ return also varied year to year and Maximum strings of losses and winners not to mention average winning trade V average losing trade.

If youve got these then you can certainly have something of interest to discuss going forward with trades and method presented.

I did exactly the same with "techtrader" on Radges site for 5 yrs
I learnt massive amounts from that exercise it was the most dissected system on the net as far as I know.
There were 1000s of posts its still there if you have a few months to plough through it!

CLICK TO ENLARGE.
tt.gif

As it is I cant wait to paint my next wall so Ive got something to look at!
 
I also think that you are at the beginning of your trading journey. This journey starts when you accept full responsibility for your trading results. This means keeping detailed trading journals (or records). If you haven't got records then your trading is better described as a hobby.

rmt1.png

I've shown some very basic stats on your closed trades. I think you should have these stats over the past 10 years if you were really trading in a professional manner. I also think you should know where you make the most profit, stocks or futures, long or short. You should also keep a record of the trade setups so you know which ones work best for you. What are the best conditions for your break-out style?

I also think you need to manage the size of your trade risk and portfolio heat better. Portfolio heat is the total amount of risk you are comfortable with in the current market conditions. I see that you are starting some short trades using 0.25% of risk. Your trade risk varies from 0.25 - 1% (1.5%). This seems very arbitrary and will lead to inconsistent results. Profits from these smaller risk trades will not be worth the effort. I know you will add to these trades if proven correct, but even then you won't get proper reward for the risk. Are these stocks you've shorted the weakest stocks in the weakest sector?

Do you use an index filter to help manage your portfolio heat?
For example:
When the index is up you are totally long (with a 5% limit = 10 trades risking 0.5%/ T or 5 trades risking 1%/T)
When the index is down you are fully short and when the index trend is unclear you have a mixture of longs and shorts.

You decide how much risk is comfortable based on what you see in the charts and your own risk tolerance.

I hope you don't think of us as overly critical. We expect more from a 10 yr trading veteran.
 
peter2 said:
I also think that you are at the beginning of your trading journey. This journey starts when you accept full responsibility for your trading results. This means keeping detailed trading journals (or records). If you haven't got records then your trading is better described as a hobby.

View attachment 50043

I've shown some very basic stats on your closed trades. I think you should have these stats over the past 10 years if you were really trading in a professional manner. I also think you should know where you make the most profit, stocks or futures, long or short. You should also keep a record of the trade setups so you know which ones work best for you. What are the best conditions for your break-out style?

I also think you need to manage the size of your trade risk and portfolio heat better. Portfolio heat is the total amount of risk you are comfortable with in the current market conditions. I see that you are starting some short trades using 0.25% of risk. Your trade risk varies from 0.25 - 1% (1.5%). This seems very arbitrary and will lead to inconsistent results. Profits from these smaller risk trades will not be worth the effort. I know you will add to these trades if proven correct, but even then you won't get proper reward for the risk. Are these stocks you've shorted the weakest stocks in the weakest sector?

Do you use an index filter to help manage your portfolio heat?
For example:
When the index is up you are totally long (with a 5% limit = 10 trades risking 0.5%/ T or 5 trades risking 1%/T)
When the index is down you are fully short and when the index trend is unclear you have a mixture of longs and shorts.

You decide how much risk is comfortable based on what you see in the charts and your own risk tolerance.

I hope you don't think of us as overly critical. We expect more from a 10 yr trading veteran.
Click to expand...

Excellent Advice Peter.
 
So what does an American hope to achieve by telling Aussies how he/she trades US equities?
Are you sending microdots to US Military Intelligence?
 
rmt: It's only fair to also compliment you on your 8 open trades (7/8 are in profit totaling +1.72%).

Getting rid of the losers quickly sees you collecting winning trades. This is a winning habit.

It's been only two weeks since you started posting your spreadsheet and yet you are almost 2% in profit. We both know how a few % each month can compound up. Keep up the good work.

I am always interested to read about the efforts of other traders as I know how hard it is to work out how to earn consistent profits.
 
Thanks Peter,

I like your style of writing and critic. I wil try to post some more numbers on the weekend. @ burglar I am from the UAE and that makes me not an American. Not even close.

I only trade US equties because they are highly liquid and there are over 8000 different stocks. Furthermore the commission are really cheap
 

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