Quote:
Originally Posted by klinton
1-2 % per day is an amazing result in trading. do your math
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Quote:
Originally Posted by crucifissio
Even 1%/week is amazing...that's like 75%/year compound...1%/day is destruction...
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Now I know you guys are high - you are actually going to sit here and extrapolate 1% daily gains to an annual?
That is literally the first thing every rookie temporary trader does.
What happens is, the thing you didn't expect wipes out 20% 3 times and you have nothing soon. Day traders always lose eventually, and each one thinks they have a new "system" that is unbeatable.
You don't have the tools, the speed, the capital, or the spreads to volume trade every day and win in the long term.
It is literally the "first mistake" to extrapolate: "EWI: Could you name two mistakes frequently made by stock traders?
Wayne Gorman: (mistake 1) The
first big mistake is the flawed logic of extrapolation. Many traders and investors assume that a trend will remain in force until an "event" comes along to change it. But market trends are not like billiard balls on a pool table. This false assumption will put you on the wrong side of the market more times than not, especially at major turning points.
Your potential for loss remains, but you multiply it daily and have only a small calculated expectation (in the mathematic sense)
Generations of volatility traders have fallen before you came here. If you are really good, tell us where the next 1000% return is?