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Originally Posted by davidtst
Hello 7thSignal
Thanks for your sharing.
I wonder how old are you...You wise smart confident in trading with 93% accuracy.
Hmmm trading in forex is must more difficult than doing PHD.
Thanks.
David
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Trading is only as difficult as the level of accuracy that you desire the speed at which you desire to grow your equity.
What’s the point of trading anyway?
I could have remained in either of the two previous careers that I had going for me at the time I began taking trading seriously. I made $150k a year in the software business thought I was very happy. But was it really all about the “money”? what is “money” good for anyway? I don’t view money in the same way that I used to several years ago for good reason. It is no longer an obstacle to any thing I could ever want or need in life. I’m fortunate to have all that I will ever need the ability to generate more at the click of a mouse. That’s real financial independence but what good is having that kind of power control over one’s financial life truly?
What’s the point of money? Why do we spend so much time trying to get it then more time worrying about how to protect it once we have it? What good is the almighty dollar?
Well it goes a little bit like this: Money is not what I want. It is dirty (filthy) as it passes through the hs of people who cough sneeze all over it all over the world. People stick it into places that might make you puke if you were told while eating dinner. It smells terrible. It is physically pointless very fragile it piles up on the floor if you don’t go out spend it. So really – what’s the point of money anyway why do we go after it with such vigor? One word:
[b]Options.[b]
That’s why we go after money so hard. Not because money itself is all that great for it has no real redeeming value intrinsic to itself. Instead what I am concerned about is being able to have as many
options in life as I possible can. The options buy a cookie cutter home in a sub-division or several hundred acres away the chatter build a 20000 square foot mansion. The options to take the bus or another form of public transportation wherever I needed to go each day or to drive a 206 MPH Porsche Carerra GT super car (watching the speed limit whenever possible - lol) wherever I needed to go each day. The option to buy a commercial lines ticket to take me to my long range destination or the option to either fly myself there in my own craft or use a Netjets account have a limo pick me up to take me to the port. To each peanut butter jelly swiches each night for dinner or filet minion with fresh vegetables a fine sip of wine. To harbor all my cash to myself until the day I die or to become the founder of several non-profit organizations dedicated to helping people who cannot help themselves in life. To build another golf course or to build a much needed Children’s Hospital to see that the children of this world have dedicated proper medical/health special concerns care when they need it.
No matter what the goals are we all want options in life not money. Options offer flexibility we all want to live flexible lives. Options enable you to do for others what they otherwise cannot do for themselves. Options allow you to help people reach their true potential in life to be an example to them to never give up on their dreams to have yes – more options in life.
So before you run off start building that “magical” “holy grail” (Traders Grail) of a trading system. Stop. Think about exactly the way you want your options to look 1 year 5 years 10 years 40 years down the road. Then Stop. think about what you want your own community state country planet to look like some 75 to 100 years down the road when you are long gone the scene. Decide what your long range goals look like the kind of
funding that will be necessary to
get them off the ground. Decide on what kind of time-table you have for building your future then determine how many
pips per day it will take to get you there. What kind of leverage will you need on each trade. How much will you need to reinvest back into each subsequent trade how much will you need to pull out to live off of until you can hit larger lot sizes per trade. Plan plan plan your revenue growth build a Revenue Model that shows you when things
should happen how long it will take you to get there so that your plans
can be MEASURED.
No good plan goes
UN-MEASURED. The Revenue Model will help you establish your metrics refine them so that you will know at a glance at the end of each week of trading whether or not you are actually
on plan or not even close to your designated targets. Like a laser guided missile once you find yourself your trading progress off course make fine tuning adjustments to your trading system Revenue Model until you start guiding in on your stated objective long range. Above all else execute execute execute
daily with relentless persistence with a psychological core that is unflappable even during the worst of trading weeks.
Eventually you will find yourself among the top 1% in the business that do this thing as naturally as most people breathe drink water. Until this business becomes a “natural” everyday “boring” occurrence without each trade being a cidate for st-in on TNT’s Drama schedule then you have not reached the stard required for long term consistent success. Each trade needs to be utterly boring without Academy Award Winning type extensions associated with it or something is definitely wrong with what you are doing. Getting to that level takes time patience a belief that it can be done.
If you want to sweat-out every single trade drink bottles of Pepto Bismal like you were slamming back shots of Whiskey then that
option is available to you as well.
I’m old enough to know how to do this thing the right way yet young enough to be able to work on my “options” to finally answer your question.
To get to the boring stage accuracy to specified targets or at least break even will be required. Trades cannot be boring when you are losing money all the time. Accuracy solves problems. Money Management only matters when you actually have
money to manage. LOL! No accuracy - there will be no money to manage over the long term. The higher the accuracy the more difficult it will be to build "that" type of trading system. Low accuracy = low expectations which translates into low slow capital growth far less consistency over long hauls. I prefer geometric growth of capital. That means non-linear equity growth. That is rapid high speed high-performance growth. Can’t get there on 2 lots per day at 2% cost basis or with low trading accuracy to a specified target low break even performance.
You don’t need all the pips that exist between here the next observable supernova. Just a few pips per day with increased lot sizing increased accuracy increased reinvestment per trade coupled to high signal availability will help to grow capital at an alarming rate. But it cannot be done the same way with 50% to 65% trading accuracy.
Setting the right long range goals (options) will lead one down the correct path to a custom trading system that nets the number of pips required each day to meet the qualifications of the goals (options) desired. Then work that plan day after day until your goals (options) become physical manifestations of your thought process.
I think it was the founder of Starbucks who once said something like: your dreams can’t become a reality if you don’t dream big enough. Or something like that. The point is this: don’t just “dream”. Anybody can do that. But when you dream – dream BIG. Then have the guts be crazy enough to actually believe that you can pull it off.
Did you know the Einstein used to take naps almost everyday just so that he could “dream”? Did you know that it was inside a “dream” where he actually discovered the concepts that would allow him to complete E~MC2 in all of its glorious simplicity? Lee Iacocca had a dream. Martin Luther King Jr. had a dream. Many giants of the 18th 19th 20th 21st centuries all had dreams. The Wright Brothers had a dream.
Nothing wrong with dreaming as long as the dream is BIG (Huge) one is willing to get out of bed work their butt off to bring it to fruition.
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