Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,059 since Dec 2013
Thanks Given: 4,410
Thanks Received: 10,226
WOW. Amazed that finance students/professionals would perform that badly. Love the conclusions.
Probably good reading for most traders. Unfortunately trade sizing is really a function of probability/statistics, which is often something many are not good at.
Yes i find it more interesting that.. sometimes we trade just out of boredom..our brain seeks action and dopamine.. excitement of being right and anger of being wrong.. both🙂, so i am doing since months an experiment .. take crazy and wild trades on TV and more measured moves on NT Sim in parallel..its working so far but interesting would be when i will switch to NT Live🙂 lets see ..however excel here in the thread was an eyeopener .. u can only bet x% for saying long in game.. its about staying long .. focusing on process, results will be a side effect..( easier said than done lol)
What an opportunity trading presents to us to look inside our mind.. all spaces .. glad to have it🙂
This is a nice illustration of the importance of money management. In Ryan Jones' The Trading Game there is a similar experiment with coin flip and 1:2 risk-reward. Heads - you lose $1, tails - win $2. Depending on the percentage of capital you risk on each flip the end result is vastly different. I ran similar simulation in Excel and got the same results.
In the movie Rounders Matt Damon's character makes a point. Poker, in essence, is the game of chance. However, every year it is the same ten guys sitting around the table at the world tournament final. I think trading is similar. Everyone of us is dealt the same cards, yet only a few make it, and even fewer make it big. Food for thought.
That the dominant story, isn't it? Not that he was playing a coin throwing game with his broker. Breaking the rules that were tested brings less than optimal results. I've done it myself a couple of times.
I think position sizing is most relevant (crucial) for leveraged instruments. I am not sure if it makes any difference If you're buying stocks at nominal value.