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<FONT face=Arial
color=#0000ff size=2>First you need an accountant/lawyer familiar with the
topic.
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>After consulting with mine I have:
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>Established an LLC (sole proprietorship) so that I can
write off more expenses.
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>Declared the LLC as a "mark to market" trader on my tax
return. There are a number of "tests" that you must pass in order to do
this and even so its up to interpretation by the IRS (not by you) as to whether
you qualify. Chief among them is that your next meal must depend on your
trading, ie - you can't have a full time job. If you do qualify then you
get to write off all losses and not have to worry about the "wash
rule".
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>those are the 2 big steps you can take.
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>here is some reading material for you:
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2><A
href="">http://www.fourmilab.ch/ustax/www/t26-A-1-E-II-D-475.html
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2><A
href="">http://www.thestreet.com/basics/tradertaxes/716317.html
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>Here are a couple of tax duudes on the net (never done
bidness with them):
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2><A
href="">http://www.tedtesser.com/about.html
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2><A
href="">http://www.tradersaccounting.com/index.asp
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>HTH
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>d
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>
From: Jason Hart [mailto:jhart_1972@xxxxxxxxx]
Sent: Monday, March 08, 2004 12:19 PMTo:
amibroker@xxxxxxxxxxxxxxxSubject: RE: [amibroker] Re: Comments on
Van Tharp courses please
USdingo <dingo@xxxxxxxxxxxx> wrote:
<BLOCKQUOTE class=replbq
>
<FONT face=Arial
color=#0000ff size=2>what country are you in?
<FONT face=Arial
color=#0000ff size=2>
<FONT face=Arial
color=#0000ff size=2>d
From: Jason Hart
[mailto:jhart_1972@xxxxxxxxx] Sent: Monday, March 08, 2004
10:48 AMTo: amibroker@xxxxxxxxxxxxxxxSubject: RE:
[amibroker] Re: Comments on Van Tharp courses please
Herman -
Re embarrassed using the word "invest" heheh. One thing I never
see is managing the tax implications of ST trading. How do people
here deal with it - are certain measures, practices used to try and
minimize taxes or is this another one of those "cost of doing business"
items.
JasonHerman van den Bergen
<psytek@xxxxxxxx> wrote:
<BLOCKQUOTE class=replbq
>
<FONT face=Arial color=#0000ff
size=2>Thank you Pal,
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial color=#0000ff
size=2>interesting comments and URLs. Reading some of the text I feel
even more strongly that whatever MM you use is very much dictated by the
type of trading system you use. Some of the articles still seem to talk
about "investing", I am embarrassed to even use that word among my
friends ;-)
<FONT face=Arial color=#0000ff
size=2>However i agree that some parts of MM are universal and make
common sense. Nevertheless I think that for short term trading (0-3
days) market volatility and descretionary moves wipes out most of
the multi-digit precision/siginficance of MM; you have to
develop your own and very personal MM. There is no ready plan you can
adopt.
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial color=#0000ff
size=2>take care,
<FONT face=Arial color=#0000ff
size=2>h
<FONT
size=2><FONT face=Arial
color=#0000ff>
<SPAN
class=718051515-08032004> -----Original
Message-----From: Pal Anand
[mailto:palsanand@xxxxxxxxx]Sent: Monday, March 08, 2004 4:23
AMTo: amibroker@xxxxxxxxxxxxxxxSubject:
[amibroker] Re: Comments on Van Tharp courses
please
Hi Herman,--- In amibroker@xxxxxxxxxxxxxxx,
"Herman van den Bergen" <psytek@xxxx> wrote:> Some
time ago we had lengthy discussions on Von Tharp's theories. I
read all of your past posts regarding Money Management, your
discussions with William Wong, Al, Ara, Ken etc., Thanks for
posting the results of your tests and links for the Money
Management. I am yet to fully read them all. , particularly
<A
href="">http://keplerweb.oeh.uni-linz.ac.at/trading/moneyMan.htmIf
i> recall correctly he treats the market like a Random
phenomena and bases all> his statistical analysis on that.
This is completely contradictory to those> of us who design
mechanical trading systems that give 60-75% winning
trades,> have well distributed and defined losing and winning
streaks, and have> profit as well as stop control measures
in place.I agree. Also, Tharp says: People are
always looking for the "real" secrets of trading success, but
their mental biases always have them looking in the wrong places
and at the wrong things. Consequently, they search for
magical trading systems with 75% accuracy or better or for great
entry systems that they think will help them pick the right
stock. Picking the right stock has nothing to do with
success and neither does the accuracy of your stock
picking.I strongly disagre with the above statement.
Half of investing/trading is knowing what and when to trade. The
other half is knowing what amount to risk. His statements are due
to a strong belief in the Efficient Market Hypothesis
(EMH).<A
href="">http://www.capmag.com/article.asp?id=2623<A
href="">http://www.capmag.com/article.asp?id=2883>
> At the time of the thread i bought and read his book "Trade
your way to> finacial freedom". It was fun reading however
I proved a number of his> assumptions wrong 'for my trading
systems'; my systems are definitely not> random. Testing
several systems over 280,000 bars, with average trade>
durations from 2-10 bars his predictions for winning and losing
streaks for> example was way off. If you are interested you
may search the archives, i> posted some of my code used to
analyze systems, as well as results complete> with charts
on this list.> > Far too little time is spend on system
analysis, way too much time goes into> driving profits up
by optimization. All systems are different; analyze your>
own systems, do not believe that anybody else can tell you have
they behave> under various market conditions.>
Part of exploiting and maximizing a trading systems potential
is knowing how to risk our money. A well thought out system
should have the entry and exit point fixed before the trade is
entered. The difference is your risk. The money management
discussion "how many" is then based on your total account size,
%Risk/Trade, Entry and Exit points. MM has everything to do
with Entries and Exits (Stops), because one needs to use these
entry and exit stops your system and the market specifies in order
to determine the "how many". This is one of the great
secrets. This goes contradictory to the game's philosophy
which treats entries and setups as false control illusions.
It is true that while we are searching for a Holy grail system
spending endless time there, position sizing might offer a much
easier path because it optimizes expectancy while controls the
risk of your choice, you know you can live long enough to earn
your expectancy returns.I agree with Edward O. Thorp who
says: The central problem for gamblers is to find positive
expectation bets. But the gambler also needs to know how to manage
his money,i.e. how much to bet. In the stock market (more
inclusively, the securities markets) the problem is similar but
more complex. The gambler, who is now an investor, looks for
excess risk adjusted return. In both these settings, we explore
the use of the Kelly criterion, which is to maximize the expected
value of the logarithm of wealth (maximize expected logarithmic
utility). The criterion is known to economists and financial
theorists by names such as the geometric mean maximizing portfolio
strategy, maximizing logarithmic utility, the growth-optimal
strategy, the capital growth criterion, etc.MM is an integral
part of the basic system design and the goal of your system should
be to bet the optimum amount, where the risk/reward ratio of your
system is the best it can be, i.e., it maximizes expectancy within
levels of risk that are acceptable. If you have an edge over
this game, then you should take advantage of it, but do it with
the track's money by using a small initial bankroll, i.e, an
Anti-Martingale system unless one is day-trading. But, in
order to apply MM effectively, trader's needs to have a defined
system for entering and exiting the market with a historical and
accurate profit and loss record. Having a well tested trading
system helps insure that traders get consistent trading results
from future trades, within normal statistical boundaries. It is
understanding these statistical boundaries that represents a large
aspect of managing an account both effectively and efficiently.
The main way traders learn to understand these statistical
boundaries is to have a sufficient sample of tested
trades.> bets regards,> herman.rgds,
Pal> -----Original
Message-----> From: Pal Anand
[mailto:palsanand@xxxx]> Sent: Sunday, March 07,
2004 4:34 PM> To:
amibroker@xxxxxxxxxxxxxxx> Subject: [amibroker] Re:
Comments on Van Tharp courses please> >
> I downloaded the free "Secrets of the Masters
Game" and played with> it. The first 2
levels are a piece of cake. The 3rd level is>
difficult, but in only 3 trials out of 75 I finished it. I
think I> have unlocked the secret code for the
right combination of the Risk> ($ per Share)
and Investment level (# Shares to buy.) This is
no> mean feat. There is only one combination
which is optimum. Find> this combination and
I would acknowledge that you are a Master and>
you dont need to spend on anything else. Here are the
instructions> to download and for the
game:> > <A
href="">http://www.iitm.com./_vti_bin/shtml.dll/regform.htm>
> Position Sizing: The Secrets>
of the Masters Trading Game> Instructions for Level
Three> > This level is similar to level
one. You are given a trading system> that
goes long in the market. Your only choice is to decide
how> much to risk for each trade. That's
it! You simply decide how much> to
risk. Overall, level two is an even better system than level
one> gave you. Over many trials, your
expectancy will be 0.91 as> compared with 0.45 for
the first level.> > Now that you've reached
this level, we recommend that you begin by>
saving the game. If you should go bankrupt, you will have to
start> again at the beginning of the game if
you don't have a saved game at> this
level. However, we hope you can get through the game
without> going bankrupt.>
> Once again, you will have the opportunity to make
75 trades. Your> minimum goal is to make
a profit of 50% by the end of the 75 trades> so
that you can advance to level four. However, you
will> automatically advance to level three should
you increase your equity> by 500% from the
starting value.> > If you have not made a
profit at the end of 75 trades, you will need>
to start this level over again. However, if you have made a
profit> that's less than 50%, you will then
have another 25 trades to reach> your goal of
50% to advance to the next level.> > If you
have a loss at the end of 75 trades, you will have to
start> the level over again with a 10% penalty
(subtracted from your prior> starting
equity).> > The probabilities and payoffs
for this level are given in the> statistics section
of the game (in the View menu.) We'd suggest>
that you study them carefully and develop a strategy before
you> begin the game.> >
Level Three> > > Questions &
Answers> > Question:> Why
am I not allowed to go short? I would be right 70% of
the> time. Isn't that what it's all
about?> > Response:>
Hopefully you'll step out of the box of needing to be right
by> playing this game. You should be learning
the importance of large R-> multiples over
being right. Wait until you get a 30R or 20R
trade> in your favor and see what that does for
your account. Or would you> rather have
that against you? If being right is that important
to> you, you'll have your chance to go against
the expectancy in level> five.>
> Question:> What's a good
strategy to play this game?> >
Response:> Figuring out a good strategy and
learning from your mistakes is one> of the
skill requirements of this game. What is your
worst-case> loss? It's four percent, so
you'll risk bankruptcy by risking over> 25% on
any trade. Also think about how many losses you could
have> in a row. You're only right 30% of
the time. It's very likely that> you
might have 9 losses in a row in your 75 trades. You might
even> have a streak of losses as big as 20 or
more. You need to play to> survive that
you that you can make money on the 30R trades that>
might come up. With those two guidelines, design your own
strategy.> > IITM also sells products
designed to help you with strategy>
development. These include 1) the money management report; 2)
a> newsletter issue devoted to optimal bet size;
and 3) optimal bet> size software that will be
available for purchase in mid-2002.> >
Question:> Once again, I don't have much
information on any of these> investments or
trades. How am I to know which one's will go up?>
> Response:> You don't know what
will go up, that's true. But you do know the>
payoffs and probabilities of the system you will be trading.
That's> all you need to know to figure out to
work out bet sizing> strategies. Those
strategies are the key to success and this
game> is designed to get you away from
predicting the market and into> thinking about
those strategies.> > rgds, Pal>
> --- In amibroker@xxxxxxxxxxxxxxx,
"relentless1000" <cgmv@xxxx> wrote:> >
I purchased the "Developing a winning trading system that
fits> you"> > audio tape
course back in December 03 (got it on sale for
$699).> > Just as I've found with other
books and courses its not a>
blueprint> > for making a fortune, but I did
come away learning a handful of> > helpful
things.> >> > I found it a
little pricey since it is an audio taped seminar.>
The> > advertising for it says it's
profesionally edited. I found the> >
recording to be of less quality than I expected. Several
times> > through the 12 tapes people in the
seminar ask questions or make> > comments
that you cannot hear well, sometimes even the
instructors> > cannot be heard for short
periods until the microphone picks them> >
up. Not a major problem but for ~ $ 700+, I expect a
little> better> > job than
this.> >> > The content is
organized well and pretty informative, altough I>
think> > for much less money you could buy some
books and get pretty much>
the> > same info. I think if you studied
Van's book "Trade your way to> > Financial
Freedom" and Charles LeBeau's book "Computer Analysis
of> > the Futures Market" (Charles was a major
part of the audio taped> > course, I found
his input very helpful) you'd get a majority of>
the> > technical content.>
>> > Good Luck>
>> > GV>
>> >>
>> >> > --- In
amibroker@xxxxxxxxxxxxxxx, "Al Venosa"
<advenosa@xxxx>> wrote:>
> > All of his stuff is pricey. I never took his peak
performance> > course, but I know someone who
did. He learned a lot about himself> > when
he went through it, but I don't think he is using much of
it> > today. Just like anything else. I
don't think you are using much>
of> > the stuff you learned in college today,
either, but it was good> > training. You pays
your money and you takes your chances, so goes>
the> > cliche. Why don't you call Van and ask
him about his course> >
offerings?> > >> > >
Al V.> > > ----- Original Message
-----> > > From:
Greg> > > To:
amibroker@xxxxxxxxxxxxxxx> > >
Sent: Saturday, March 06, 2004 10:56 AM> >
> Subject: Re: [amibroker] Comments on Van Tharp
courses please> > >>
> >> > > Al and
Phil,> > >> >
> Thanks for your comments on Van Tharps' courses. I
was> wondering> > if you know
anything about his Peak Performance Course for>
Investors> > and Traders. It looks interesting,
although a little pricey. I>
know> > of people paying much more for a
personal adviser that works with> > them on
some of the areas that Tharp deals with, such as making
a> > business plan. Seems like Tharp goes into
areas that will> > psychologically prepare you
for trading. I guess I'll have to read> >
through the description of the course more thoroughly and
then> decide> > if I it would
be worthwhile for me.> >
>> > > Thanks again for your
comments,> > >> >
> Greg> >
> ----- Original Message
-----> > > From: Al
Venosa> > > To:
amibroker@xxxxxxxxxxxxxxx> >
> Sent: Saturday, March 06, 2004 11:41
AM> > > Subject: Re:
[amibroker] Comments on Van Tharp courses
please> > >> >
>> > > Hi,
Greg:> > >> >
> I took Van's Advanced Stock Market course
about 2.5 years> ago.> >
Don't even know if he still offers it. Although I enjoyed
it> > immensely, especially all the money
management material, the main> > lecturer,
Dennis Ullom, was a CANSLIM trader of sorts. Since
I'm> more> > of a
mechanical trading system type of person, I didn't get
that> much> > out of his
presentations because a lot of that sort of
trading> > philosophy is discretionary, or at
least subjective judgment. If> > that's your
thing, then you will likely get a lot more out of
it> than> > I did. But I
thought the money management stuff was very>
worthwhile.> > For about $80, you could buy
Van's Report on Money Management plus> > his
book "Trade Your Way to Financial Freedom" and learn all
you> need> > about money
management for a fraction of the price of his
course,> > IMO.> >
>> > >
Regards,> > >> >
> Al Venosa> >
> ----- Original Message
-----> >
> From:
Greg> > >
To: AmiBroker@xxxxxxxxxxx> >
> Sent: Saturday, March 06,
2004 10:18 AM> >
> Subject: [amibroker] Comments
on Van Tharp courses please> >
>> > >> >
> Hi,> >
>> > >
I was wondering if anyone here has taken any of
the> courses> > offered by
Van Tharp. If so could you please comment on there>
> helpfulness.> > >>
> >
Thanks,> >
>
Greg> > >> >
>> > >
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