Re: MC's House of Mirrors
I just did my taxes...
Net lifetime loss in the market is about -$1,300 over the last 14 months.
Commission for all trades was $1,100ish.
Tradestation net slippage was -$300.
401k shifting from my knowledge was +10% or more.
So barring commission and slippage I actually would be literally in profit. I know that's not realistic and commission is the cost of doing business but still interesting none the less. The 401k shift and capital loss tax write offs saved me some sexy money so my net experience in 14 months is green as far as I'm concerned.
This year will be my 1st profitable year, I have no doubts on this as the only past limitation was my mind. I have been on FIRE with my demo account (yes I've always said it's nothing like live). Short term scalp/daytrades on the YM this week have been $500-800 a day. I feel like I owe this change to "trading in the zone". I'm going to read it a 2nd time and then fund a futures account to try my edge again with my more solidified discipline thanks to the book.
YTD the paper account is up $3906 net, playing within reason for my equity level. All comes down to showing the same discipline and execution when live.
$4585 gross before $679 commissions.
Added------
Something just clicked even further when I re-read this back to myself. I did very well on the 401k shift, not perfect but a true profitable trader is NOT looking for perfection in relation to gains. If you're chasing perfection in gains instead of perfect execution of your system you're set for failure and are being un-realistic. You will NEVER know for certain what's next in the market, and to think you will is going to lead to mistakes and losses.
Couple the above with the fact I was "trading" (more less) with an account I have no concern over. It's 401k and since it's gone from my check I don't even look at it as my money. When I removed the fear of risk, as I do with the paper account it was effortless and quite profitable. Going forward I will fully embrace the risk of testing out the unique market moment and simply pony up the stop as a token of my willingness to try the edge which I know has net profitable expectations. It's all been clear from very early on but in typing this over and over on boards it's starting to seep into my subconscious mind. This is where traders succeed or fail, the back of the dome, NOT what you know to be true but cannot act upon. The way we were brought up conditions us to have involuntary reactions that sabotage us in a trading endeavor.
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Price is simply the 2 way auctions method of advertisement. Volume measures the willingness of market participants to transact at the advertised price (AKA perceived value).
Last edited by MC; 02-23-2008 at 10:12 AM.
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