Read on Twitter
I think this needs a thread. https://twitter.com/TradingComposur/status/1329153415885295617
1/x
The market doesn’t care about your need to perform.
If you trade long enough, you‘ll eventually see this pan out: sometimes you‘ll get a handful of losing months in a row, regardless of your strategy's expectancy and potential.
Mark down my words.
The market doesn’t care about your need to perform.
If you trade long enough, you‘ll eventually see this pan out: sometimes you‘ll get a handful of losing months in a row, regardless of your strategy's expectancy and potential.
Mark down my words.
2/x
In fact, the yearly measure of performance that everybody takes for granted came from a necessity for fund managers to show their clients some sort of consistency in performance.
People are shortsighted―they want to see results fast or they bring their business elsewhere.
In fact, the yearly measure of performance that everybody takes for granted came from a necessity for fund managers to show their clients some sort of consistency in performance.
People are shortsighted―they want to see results fast or they bring their business elsewhere.
3/x
But this doesn't really take into account the nature of probabilities and distribution of outcomes.
Instead, it creates an illusion of control and certainty that's inherently not there.
But this doesn't really take into account the nature of probabilities and distribution of outcomes.
Instead, it creates an illusion of control and certainty that's inherently not there.
4/x
So, personally, this is how I do things: my trading systems have an asymmetric risk-reward bent―I'm typically risking 1 to make 3, 4, or more.
I focus on trading those systems.
Over many-many trades, I generate more profits than losses―been pretty consistent at that.
So, personally, this is how I do things: my trading systems have an asymmetric risk-reward bent―I'm typically risking 1 to make 3, 4, or more.
I focus on trading those systems.
Over many-many trades, I generate more profits than losses―been pretty consistent at that.
5/x
So, to your question of how much you should be making per week to trade full time, I would say: what's your financial cushion?
How much do you have on the side in case you have 2-3 losing months―or even a full year?
Can you even stomach it?
So, to your question of how much you should be making per week to trade full time, I would say: what's your financial cushion?
How much do you have on the side in case you have 2-3 losing months―or even a full year?
Can you even stomach it?
6/6
Sorry for rambling, this is written on the go, but these are the questions you need to ask yourself.
I hope it's helpful.
Sorry for rambling, this is written on the go, but these are the questions you need to ask yourself.
I hope it's helpful.
