"very high returns (>3%/day average) are being made by some traders I know"
Even if they are only using $100,000 to trade with they are making $750,000, year in and year out. Same as a 75% return on a million dollars.
--- In amibroker@xxxxxxxxxxxxxxx, Dennis Brown <see3d@xxx> wrote:
>
> No need to argue the point. Everyone is right, depending on the
> particular circumstances.
>
> As I have pointed out before, very high returns (>3%/day average) are
> being made by some traders I know using hardly more than a ruler for
> their TA --trading trend lines and support and resistance levels on
> very short timeframes (seconds to minutes) --and perhaps a couple of
> indicators like MACD or CCI. The key is leverage and that the
> winnings are not compounded, but taken off the table and used to live
> on, or put into more conservative long term positions. The market can
> not support large dollar compounding more than the average of the long
> term growth of the better performing issues. You can skim large % off
> small $ if you fly below the radar. Greed will not work to your
> advantage.
>
> Dennis
>
> On Feb 26, 2008, at 9:50 AM, dave_88_1961 wrote:
>
> >
> > 100% can be made in the early years but as the account grows returns
> > diminish.
> >
> > Dave
> >
> >
> > --- In amibroker@xxxxxxxxxxxxxxx, "brian_z111" brian_z111@ wrote:
> >>
> >>
> >>> A profit of 1% per day, every trading day, grows so fast that the
> >>> account balance is larger than all the real estate in the US in just
> >>> a few years.
> >>
> >> Hypothetical numbers can be quoted to create a desired effect e.g. if
> >> we put it this way, things look a lot different:
> >>
> >> A trader starting with $100K who returns 100%PA on average, and
> >> trades for 10 years, would be able to afford to buy a home in San
> >> Jose Calfor nia, but not the best one in the area.
> >>
> >> Do you think many traders with that kind of performance would
> >> continue to trade after 10 successful years?
> >>
> >> brian_z
> >>
> >>
> >> --- In amibroker@xxxxxxxxxxxxxxx, "brian_z111" brian_z111@ wrote:
> >>>
> >>> I draw your attention to the following article, especially item 3:
> >>>
> >>> "Who is the most unusual trader you ever interviewed"?
> >>>
> >>> http://www.moneybags.com.au/profile.asp?id=1363
> >>>
> >>> Two consecutive 300%PA plus public performances from Mark Cook.
> >>>
> >>> It is possible that he was just incredibly lucky (are we fooled by
> >>> randomness a la Taleb)?
> >>>
> >>> He was also incredibly lucky for a period spanning 6 years before
> >>> that (trading bonds and stock indexes!)
> >>>
> >>> Note that the period 1992-1993 when he publically achieved those
> >>> results was not a particularly outstanding two years for equities.
> >>>
> >>> brian_z
> >>>
> >>>
> >>>
> >>>
> >>> --- In amibroker@xxxxxxxxxxxxxxx, "brian_z111" <brian_z111@> wrote:
> >>>>
> >>>> Howard,
> >>>>
> >>>>> Any time someone suggests a growth of more than about 40% per
> >>> year,
> >>>>> take that with a very large grain of salt.
> >>>>
> >>>> I expected you to disagree with my statement.
> >>>> I'm sure a lot of traders would be aghast at the numbers I quoted
> >& gt;> as
> >>>> the theoretical potential.
> >>>>
> >>>> At his website Professor John Price posts audited returns of
> >> approx
> >>>> 20-25% PA over a 5 year period, or more, using simple Techno-
> >>>> fundamental methods (as I recall the figures).
> >>>>
> >>>> The caveat there is that the sample period is short and selective.
> >>>>
> >>>> Trading on margin that would return 30-35% PA with less than half
> >>> an
> >>>> hour a days work and no effort to use any other timing mechanisms.
> >>>>
> >>>> If your statement is true we can all give up any further efforts
> >>> and
> >>>> simple trade his method.
> >>>>
> >>>> Similarly, the ASX, which is a high dividen d paying market (due
> >> to
> >>>> franking) has total returns of in excess of 15% PA on average
> >> over
> >>>> longer time periods.
> >>>> Using simple leveraged buy&hold strategies that is 20-25% without
> >>> any
> >>>> ongoing effort required what-so-ever.
> >>>>
> >>>> In "Stock Market Wizards", Schwager, Jack.D, Harper Business 2001
> >>> the
> >>>> first page of the first chapter in the book quotes Stuart Walton,
> >>>> fund manager, who achieved "115 percent average annual compounded
> >>>> return in trading profits" un 8 consecutive years during the
> >>> nineties.
> >>>>
> >>>> As I understand it Schwager's books are well researched and based
> >>> on
> >>>> verif iable case studies?
> >>>>
> >>>> I only opened the book at the first chapter and didn't need to go
> >>> any
> >>>> further or to his other 2 books containing similar testimonies.
> >>>>
> >>>> brian_z
> >>>>
> >>>
> >>
> >
> >
> >
> >
> >
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>