Comments on: Lessons Learnt as a Trader (so far) Part 3 http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/ Wed, 08 Feb 2012 04:44:12 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: David http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/#comment-804 David Fri, 29 Oct 2010 15:41:08 +0000 http://www.bigfatpurse.com/?p=2681#comment-804 I thought you might want to add this as lesson as it really reiterates the core of holding on to your winnings to make a profit out of your losses. http://www.youtube.com/watch?v=FPJc46yo1cA Cheers I thought you might want to add this as lesson as it really reiterates the core of holding on to your winnings to make a profit out of your losses.
http://www.youtube.com/watch?v=FPJc46yo1cA
Cheers

]]> By: David http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/#comment-2272 David Fri, 29 Oct 2010 15:41:08 +0000 http://www.bigfatpurse.com/?p=2681#comment-2272 I thought you might want to add this as lesson as it really reiterates the core of holding on to your winnings to make a profit out of your losses. http://www.youtube.com/watch?v=FPJc46yo1cA Cheers I thought you might want to add this as lesson as it really reiterates the core of holding on to your winnings to make a profit out of your losses.
http://www.youtube.com/watch?v=FPJc46yo1cA
Cheers

]]> By: David http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/#comment-803 David Tue, 20 Jul 2010 16:39:06 +0000 http://www.bigfatpurse.com/?p=2681#comment-803 I sincerely thank you for accepting my comments with regards to your blog as I think I wasn't constructive. But I am glad you are a gentleman and respect my perception. Hey if you need more book review I have alot but it is all in ebook version. Cheers I sincerely thank you for accepting my comments with regards to your blog as I think I wasn’t constructive. But I am glad you are a gentleman and respect my perception. Hey if you need more book review I have alot but it is all in ebook version.

Cheers

]]> By: David http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/#comment-2271 David Tue, 20 Jul 2010 16:39:06 +0000 http://www.bigfatpurse.com/?p=2681#comment-2271 I sincerely thank you for accepting my comments with regards to your blog as I think I wasn't constructive. But I am glad you are a gentleman and respect my perception. Hey if you need more book review I have alot but it is all in ebook version. Cheers I sincerely thank you for accepting my comments with regards to your blog as I think I wasn’t constructive. But I am glad you are a gentleman and respect my perception. Hey if you need more book review I have alot but it is all in ebook version.

Cheers

]]> By: Alvin http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/#comment-802 Alvin Sat, 17 Jul 2010 01:43:51 +0000 http://www.bigfatpurse.com/?p=2681#comment-802 Thanks all for your encouraging comments and advice! Thanks all for your encouraging comments and advice!

]]> By: Alvin http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/#comment-2270 Alvin Sat, 17 Jul 2010 01:43:51 +0000 http://www.bigfatpurse.com/?p=2681#comment-2270 Thanks all for your encouraging comments and advice! Thanks all for your encouraging comments and advice!

]]> By: Daniel http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/#comment-801 Daniel Fri, 16 Jul 2010 13:48:21 +0000 http://www.bigfatpurse.com/?p=2681#comment-801 The edge can be quantified/measure statistically. In earlier posting I mentioned if you were to play a normal big/small game or say a flip coin game the chance of winning is 50/50. 50/50 holds when you place a $1 bet when you win, you win $1. When you lose, you lose the whole $1. 50/50 DO NOT hold when you win, you win only $0.90 and when you lose, you lose $1. This is not 50/50 probability any more. In trading, when you buy and sell at the same price, you already lost. Because the $1 that went in comes out $0.90, this is the house edge. The house takes commission. To have an edge above the house, the same $1 that goes in must come out >$1. If over average whatever you put in comes out with a >0% gain, you ready have an edge. Some people thinks this is naive or 0.001% is too little. Tried to think back in some of the case about a bank staff that made a program so that for every transaction made on the ATM machine $0.01 was transferred into his account. Whatever trading/investment strategies you are currently using, the results reveal its substance. Keep a good record of all the trades/investment and do an average of the profit/loss. There are ways to evaluate which strategies is better and which strategies to abandon. Now, if using probability distribution to represent your trading/investment results, it might look like a bell curve or it might not. If a normal distribution has a mean of 3 and standard deviation of 1. This distribution shows that there is a 0% chance of losing (below 0). A trading strategy/result like this I have not come across. 6 std deviation covers all probability. If you could make the trading system achieve a +ve mean and small standard deviation, you are on your way with a good system. This the edge when quantified in statistic. The edge can be quantified/measure statistically. In earlier posting I mentioned if you were to play a normal big/small game or say a flip coin game the chance of winning is 50/50. 50/50 holds when you place a $1 bet when you win, you win $1. When you lose, you lose the whole $1. 50/50 DO NOT hold when you win, you win only $0.90 and when you lose, you lose $1. This is not 50/50 probability any more. In trading, when you buy and sell at the same price, you already lost. Because the $1 that went in comes out $0.90, this is the house edge. The house takes commission. To have an edge above the house, the same $1 that goes in must come out >$1. If over average whatever you put in comes out with a >0% gain, you ready have an edge. Some people thinks this is naive or 0.001% is too little. Tried to think back in some of the case about a bank staff that made a program so that for every transaction made on the ATM machine $0.01 was transferred into his account.

Whatever trading/investment strategies you are currently using, the results reveal its substance. Keep a good record of all the trades/investment and do an average of the profit/loss. There are ways to evaluate which strategies is better and which strategies to abandon.

Now, if using probability distribution to represent your trading/investment results, it might look like a bell curve or it might not. If a normal distribution has a mean of 3 and standard deviation of 1. This distribution shows that there is a 0% chance of losing (below 0). A trading strategy/result like this I have not come across. 6 std deviation covers all probability. If you could make the trading system achieve a +ve mean and small standard deviation, you are on your way with a good system. This the edge when quantified in statistic.

]]> By: Daniel http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/#comment-2269 Daniel Fri, 16 Jul 2010 13:48:21 +0000 http://www.bigfatpurse.com/?p=2681#comment-2269 The edge can be quantified/measure statistically. In earlier posting I mentioned if you were to play a normal big/small game or say a flip coin game the chance of winning is 50/50. 50/50 holds when you place a $1 bet when you win, you win $1. When you lose, you lose the whole $1. 50/50 DO NOT hold when you win, you win only $0.90 and when you lose, you lose $1. This is not 50/50 probability any more. In trading, when you buy and sell at the same price, you already lost. Because the $1 that went in comes out $0.90, this is the house edge. The house takes commission. To have an edge above the house, the same $1 that goes in must come out >$1. If over average whatever you put in comes out with a >0% gain, you ready have an edge. Some people thinks this is naive or 0.001% is too little. Tried to think back in some of the case about a bank staff that made a program so that for every transaction made on the ATM machine $0.01 was transferred into his account. Whatever trading/investment strategies you are currently using, the results reveal its substance. Keep a good record of all the trades/investment and do an average of the profit/loss. There are ways to evaluate which strategies is better and which strategies to abandon. Now, if using probability distribution to represent your trading/investment results, it might look like a bell curve or it might not. If a normal distribution has a mean of 3 and standard deviation of 1. This distribution shows that there is a 0% chance of losing (below 0). A trading strategy/result like this I have not come across. 6 std deviation covers all probability. If you could make the trading system achieve a +ve mean and small standard deviation, you are on your way with a good system. This the edge when quantified in statistic. The edge can be quantified/measure statistically. In earlier posting I mentioned if you were to play a normal big/small game or say a flip coin game the chance of winning is 50/50. 50/50 holds when you place a $1 bet when you win, you win $1. When you lose, you lose the whole $1. 50/50 DO NOT hold when you win, you win only $0.90 and when you lose, you lose $1. This is not 50/50 probability any more. In trading, when you buy and sell at the same price, you already lost. Because the $1 that went in comes out $0.90, this is the house edge. The house takes commission. To have an edge above the house, the same $1 that goes in must come out >$1. If over average whatever you put in comes out with a >0% gain, you ready have an edge. Some people thinks this is naive or 0.001% is too little. Tried to think back in some of the case about a bank staff that made a program so that for every transaction made on the ATM machine $0.01 was transferred into his account.

Whatever trading/investment strategies you are currently using, the results reveal its substance. Keep a good record of all the trades/investment and do an average of the profit/loss. There are ways to evaluate which strategies is better and which strategies to abandon.

Now, if using probability distribution to represent your trading/investment results, it might look like a bell curve or it might not. If a normal distribution has a mean of 3 and standard deviation of 1. This distribution shows that there is a 0% chance of losing (below 0). A trading strategy/result like this I have not come across. 6 std deviation covers all probability. If you could make the trading system achieve a +ve mean and small standard deviation, you are on your way with a good system. This the edge when quantified in statistic.

]]> By: Createwealth8888 http://www.bigfatpurse.com/2010/07/lessons-learnt-as-a-trader-so-far-part-3/#comment-800 Createwealth8888 Fri, 16 Jul 2010 11:13:57 +0000 http://www.bigfatpurse.com/?p=2681#comment-800 Continue with your full time job. It is not that difficult to do part-time short-term trading and long-term investing with modern mobile technology. Continue with your full time job. It is not that difficult to do part-time short-term trading and long-term investing with modern mobile technology.

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