I am very excited right now as I’m working with a student who has some amazing natural talent.
This came about when he listed the goals for 2014. We reviewed his goals for 2013 and found out that he did not hit one of the most important goals: being profitable.
As a converting day trader, he’s amazed how much ego had gone into his trying to determine price targets for instruments he traded.
It’s one thing to get the instrument right, another to get the direction right, and a third thing to get the position sizing right. So we did a little exercise.
We built a spreadsheet of all his trades of 2013 and created 3 columns: entries, exits, and a “Where Are They Today” column. In 97% of the cases the longs were higher than his exit price.
When we multiplied it by the position size, we can see the money left on the table in dollar and percentage terms.
This represents the opportunity cost of being a day trader.
How much is being a day trader costing you?
Watch the free Volatility Study lesson.
Watch the free Vertical Put Spread lesson on AAPL.
Here’s a recent review of Inner Voice of Trading.
Latest posts by Michael (see all)
- What you need to do to survive your first three years - May 21, 2018
- If you want to succeed in the markets, these three things must line up - May 18, 2018
- “Mike, what markets are you trading?” - May 17, 2018