With all due respect to Oilman and you, let me address a couple of your statements.
Being properly capitalized is not relative to a quantity, but a position size based on a percentage of the total equity in the account. Brokers came out with the microlots with the idea that someone could enter the markets with only $25 and still start off making money.
Now, let's use some reverse logic making it relative to trading capital. Let's say someone uses 1 microlot on $1,000 (That is still not a lot of money, as we all know.). That is the same proportion at 1 lot on $100,000. My point is capital in the account should never be an issue.
The best thing at this point is use personal examples at the risk of sounding conceited. I am doing well in my trading and forecasting. I forecast on a weekly basis the 11 pairs I am most interested in trading. I track an additional 17 pairs for my trading pleasure, I forecast, almost on a daily basis, Nifty, because of the interest on this site, 3 commodities on a weekly basis because of some local interest, and any other markets someone is interested in. My forecasts are very accurate, for the most part. I'll be the first to come forth and say I miss it occasionally.
I use no paid software in making my trading decisions. I use only the ichiimoku cloud, a proprietary set of S&R's, stochastics, and TL's. That's it!
On an overall average, I have 85% winning trades (77% in March. Had a bad month.).
Most of these huge brokerage firms consider it a big deal if they are making 15% for their clients. I have a small portfolio that I left with a brokerage from a job I had 6 years ago. That portfolio is averaging 5% per year. They want to blame the economy. That little account I have is left open to simply make a point. Ichimoku, my S&R's, TL's, and stochastics have nothing to do with the economy, but the current pulse of the market.
These guys look intelligent. They talk some big talk. I appear to be a scrub peon next to those guys. I will boldly take their markets they track, apply my methodology to those markets, and then see who wins over the long run.
One of the biggest highlights in my trading career was in Oct. 2007. The DJIA was out of control. The economy, at that time, was looking very good. A broker was courting me to sell me their software, and was showing me how the DJIA was going to continue to 20,000. I told them they did not know what they were talking about (At that time it was in the 13,000's), and that it was headed to sub-10,000. They laughed me to scorn. What I told him, happened, and I never heard from him since.
All you need is a simple methodology that discerns whether the markets will go UP or DOWN. That's it! After you have mastered your own methodology, you will be wrong from time to time, but the gains will still be substantial. The markets can only go UP or DOWN. That's 50% just based on sheer probability--just like flipping a coin. Add to that a little additional discernability, do you honestly mean to tell me you can't be right 2/3 of the time?
One more point. If what we hear about these big brokerages was true (In lieu of what you said about all the elaborate software they have.), there would be no need for this web site. All of our money would be invested with them. We are all here because we know we can make more money on our own than with the help of these brokers who think they know it all.Many of us will succeed because we took the time to develop a methodology to discern the ups and down of the markets. Others will fail because they did not take their time to do the due diligence necessary to develop their trading skills.
Dear 4xpipcounter,
I am afraid Mr.oilman is correct here.
Professionals day traders go for several trades a day.
The professionals have the best in class SW's which are not affordable by the normal crowd and not even aware of the SW's or the advantages or the edge which provides them over the rest.
A professional working for a firm needs to make money out of the markets consistently since he is provided with the best in class of the sw's and he cannot blame the market conditions like much less privileged like the crowd.
He is expected to make money on any day/condition for he is equipped with enough capital/strategies/tools to trade the market conditions accordingly.
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