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Yes You Really Can Make A Million Dollars When Trend Following- Marhedge Article

It is really possible to do this ( however it is not easy). The vast majority of people can not do this. They quit at the first inevitable period of draw downs or losses. They then look for something different than trend following. Most people do not have the correct attitude when trend following. They ask “How much money did I make last month or last year”. That is irreverent. The key is have a plan with risk management plus time and compounding to work in your favor for long periods of time. You need to try to avoid the big losses. You need to accept there will be many losses. The key is to try to keep them small. The only certainty is uncertainty. We are dealing in risk. You must accept the risks in trading and trend following is not for everyone.

I sent this piece out to the people who purchased the home study guide. One person did not believe at his age he could compound money. He believed that Trend Following is a viable way to compound money but thought he missed his chance do to his age. His account is $500,000 and he is 50 years old. I emailed him a chart showing, IF he can compound over the next 30 years at 12% his account would be worth an extreme amount. I want to reiterate, That there are never guarantees nor past performance is not necessarily indicative of future performance…but if he was fortunate and was able to generate over time on average 12% that his account possibly could reach almost $15,000,000. At 15% his account could reach $33 million dollars. You do not have to believe me. Go to a compound interest calculator and verify for yourself such as
http://www.moneychimp.com/calculator/compound_interest_calculator.htm

In Market Wizards Michael Marcus had a conversation with Bruce Kovner. Kovner told Michael that it was really possible to make a million dollars.
Page 77 This is exactly from book.

“He taught me that you could make a million dollars. He showed me that
if you applied yourself, great things could happen. It is very easy to
miss the point that you really can do it. He showed me that if you take
a position and use discipline, you can actually make it.”

You can also put yourself in this position.

I am attaching an article about an investor who took $300,000 to over $19,000,000 in 2003. If he still stayed with this manager he possibly compounded money to even greater amount.
Click on the word Marhedge to read the article especially page 3

marhedge

Most money managers do not have the results as in this article. Most money managers really are not successful and do not out preform. However there are some that have been trading for decades and have generated outstanding results. Even with the outstanding results many investors do not compound money with them as they do the wrong things. They buy when the manager does well and quit when the manager has an inevitable draw down. Every manager will have losses. Some very large. You should only invest money that you lose. Trading is risky. There are no guarantees.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
This website contains references to hypothetical trading results This website contains references to hypothetical trading results.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS
** THE MATERIAL DISPLAYED ON THIS WEBSITE IS INTENDED FOR EDUCATIONAL PURPOSES ONLY.

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