Thursday, 9 December 2010

Are You A Good Trader

I just made this stuff up here on the spot after being grilled by someone who wants to know if he'd invest or if a third party would invest

1. How long did you keep your winning position
2. How long did you keep your loosing position
3. How many winners did you have
4. How many losers did you have
5. How much did you pay in commission
6. How much did you make net with trading
7. How much was the total account size
8. How much leverage did you use

My assumptions

1. Answer to Q1 should be greater than Q2
2. It doesn't matter if answer to 3 is greater than answer 4, (however if you have more winners than losers, but larger losers on average, you're in trouble!)
3. Answer to 5 should probably be at least 3x answer to 6!?
4. If 7 vs net gain (6) is less than 10%, it's probably not going to impress anyone
5. If you made 10% on an account of 100'000 but used 1'000'000 (10:1 leverage) - it's not good :D

Just some things that were floating through my mind afterwards....


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