Australian (ASX) Stock Market Forum

Takashi Kotegawa (BNF) - Super Day Trader

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Trembling Hand said:
That's not compounding thats fantasy :(
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thats compounding. Used some formula thingo on the net. Unless i put in the wrong variables. Plus this guy made $183 million from $16,000 in 8 years and if maths is right thats a frigen ridiculous amount of trading with very very high returns....unless its fantasy
 
Well if you make $20 million in 10 minutes from a market anomaly then its completely different.
 
andy87 said:
id never even thought of the beneifts of compunding till i read this. I did some calcs to see how much i could potentially earn by the time im 30 (now 21) and this is what i came up with;


Capital base - $10,000
Return - 5% (hardly unachievable)
Trades per year - 365
no. of years - 9


TOTAL= $1,363,833.24

now thats an impressive figure by any means considering the start up, which isnt a lot.
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Interesting the different ways people will view your stats. The impressive part for me is averaging a 5% return per trade, trade hundreds of times per year, and compound it into infinity.

The number at the end is rather pointless unless you can figure out how to do the things before it:2twocents
 
professor_frink said:
Interesting the different ways people will view your stats. The impressive part for me is averaging a 5% return per trade, trade hundreds of times per year, and compound it into infinity.

The number at the end is rather pointless unless you can figure out how to do the things before it:2twocents
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yeh i know, but its still fun to let your mind wonder
 
andy87 said:
yeh i know, but its still fun to let your mind wonder
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Returning 5% per day would require something spectacular IMO.

And remember that is based on full position sizing etc etc, so its not really realistic, but does still show the power of compounding
 
andy87 said:
thats compounding. Used some formula thingo on the net. Unless i put in the wrong variables. Plus this guy made $183 million from $16,000 in 8 years and if maths is right thats a frigen ridiculous amount of trading with very very high returns....unless its fantasy
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No I'm talking about the ability to make 5% per trade on $10,000 compared to $50 mil. You obviously need to trade a completely different way. And therefore a simple compounding equation isn't going to cut it. I'm certainly not dismissing the ability to do it. I try it every day ;)
 
prawn_86 said:
Returning 5% per day would require something spectacular IMO.

And remember that is based on full position sizing etc etc, so its not really realistic, but does still show the power of compounding
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5% a day isnt realistic? Well that puts my newbiness into perspective. Thanks prawn_86 :p. What is realistic then?
 
andy87 said:
5% a day isnt realistic? Well that puts my newbiness into perspective. Thanks prawn_86 :p. What is realistic then?
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The question should be what percentage of return is possible on Capitial not per trade. You could get a 10% if you use return on margin but if that is also 10% on capital you are going to blow up. Thats my point about simple compounding being fantasy.
 
Trembling Hand said:
The question should be what percentage of return is possible on Capitial not per trade. You could get a 10% if you use return on margin but if that is also 10% on capital you are going to blow up. Thats my point about simple compounding being fantasy.
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i thought the 10% on capital and per trade would go hand in hand. I wouldnt have thought it mattered considering your using 100% of your capital in every trade. No doubt im wrong about that

Furthermore, i dont know what japan's brokerage and all other fees are but Takashi must have been getting more than a 1% return/day, because after all taxes and fees you would have ended up worse off and if you repeat it your going to have nothing
 
andy87 said:
What is realistic then?
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One thing that is realistic is ..... a profit from every trade is not possible!!

There are Olympic athletes and there are around the block joggers (me :D ).As T.H. says ... the more you practice the better you could get.
 
andy87 said:
5% a day isnt realistic? Well that puts my newbiness into perspective. Thanks prawn_86 :p. What is realistic then?
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IMO you should be looking at your return relative to what % of your account you are risking on the trade.

Assuming that you are risking 1% per trade, a 50:50 win loss ratio and an average win twice your average loss, you are going to have to make at least 5 trades a day on average(or something along those lines) to get the 5% per day you are talking about.
 
Wysiwyg said:
One thing that is realistic is ..... a profit from every trade is not possible!!

There are Olympic athletes and there are around the block joggers (me :D ).As T.H. says ... the more you practice the better you could get.
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lol thats a great anology. And one thing thats carved into my mindset....nothing is impossible, simply not probabile.
 
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