Forex Factory (https://www.forexfactory.com/)
-   Trading Discussion (https://www.forexfactory.com/forum/11-trading-discussion)
-   -   The Wild West / independentNtrading / Little Whale Addition (https://www.forexfactory.com/thread/992226-the-wild-west-independentntrading-little-whale)

renNstimpy Apr 10, 2020 10:02pm | Post# 1

1 Attachment(s)
Currently looking for general advice, start some discussion, and/or a little mentoring from anyone else thats followed similar career paths with much more experience than I have.

Trading full time independently for 7 years now averaging 8.6% annual returns ever since online business ventures dried up years ago.

Instruments have mainly been equity, futures, and little FX [Ironically posted on an FX board]

I'm young, grew up poor, and am dealing with quite a lot of liquid given my age.

My annual goals have been from 5-10% for the past few years and while I believe that is "healthy"

I cant help but wonder considering im trading full time if I should be more aggressive in return goals when my life revolves around this market.

I know its up to me to decide what my risk tolerance is at the end of the day.

But I still ask anyone that is further down the road with much more experience in terms of self sufficient trading what they would say to someone at this stage.
Click to Enlarge

Name: 313409 (1).jpg
Size: 473 KB

Ll1979 Apr 13, 2020 6:46am | Post# 2

There is nothing wrong with some extra returns but remember you already double your money each 9 till 10 years comparing that to an mutual fund your considered good. Remember .... Nothing beats compounding interest.

Reading your story makes me believe your searching for answers (what trading style,risk, strategies etc etc). Reading your life revolves around this market and you having a business background imho you should write your goals (for the next couple of years) on paper.

The goals are a starting point for the puzzle on what approach to take to obtain those goals


For example:

You want your average returns to increase from 8,6% to 15% for the next 5 years starting with 1 million.

  1. Analise your current situation

    1. A lot can be improved including

      1. entries & exits
      2. money management
      3. personal habits
      4. trading system

After analyzing your current strategy you improved your average returns to 9,5% ... still 5,5% to go.


After analyzing current market conditions you noticed the telecom sector is undervalued due to a recent economical event. One mayor blue chip is cheap so you buy it big since market analysis indicate people still keep using their phone and the company is healthy. You exploited the current market condition and although returns aren't realized in a few days future average returns will befit from this.


Still you want some more action trading short time frames since your life revolves around this market. You start building your tradeplan aligned with your new system and after a couple of months backtesting you'll try it on one product (CL for example) which you're going to master inside out. You start to know the behavior of CL and what drives oil market.
You start with 5% of your capital (50K) and with your aggressive trading style you make 20K or 40% return.

The first year now looks:

1M start capital
95% -> proven strategy (950K * 1.095 (9,5%)-> 1040250
5% -> oil strategy 50K * 1.4 (40%) -> 70000

the above will result in 1110250 or roughly 11%


The second year:

90% -> proven strategy with some nice returns from your telecom blue chip (999K * 1.12% -> 1118880
10% -> oil strategy 111K * 1.25 (25%) -> 138781

the above will result in roughly 1,13%


The above could be an approach to solve your situation but it's based on assumptions on the stuff i am reading and some chats.


Doomseeker May 7, 2020 3:36pm | Post# 3

I don't think you should become an aggressive trader in order to increase your annual income (although it may be one of the ways to solve your problem, but it is not necessary). In fact, you can follow any of these paths:
1. You can choose other strategies to include more assets in your investment portfolio.
2. you can increase the time of your trading sessions in order to devote more time to this particular case.
3. you can connect fundamental analysis, which will give you the entry points that have the strongest movement potential.
To understand what is right for you, try to analyze your statistics, your work. It will really be useful for you.

Sajar May 7, 2020 3:52pm | Post# 4

You're worried early - you have a small but quite stable indicator, which many people do not see even after years on the market. In fact, you should understand in more detail the strategy that you use, because it seems to bring you money, but not in the amount that you need. Perhaps you are really overly cautious and you should try to use a higher percentage of capital, although it is still dangerous to give you such a recommendation if I don't understand what kind of capital you have and whether you can afford it. So for now, this is just a sketch that you might need. Try to find smaller entry points on those assets that you understand well.


© Forex Factory