How Professional Traders Make Money - Grand Forex Systems


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How Professional Traders Make Money


So how do you make money, which is the whole um theme of this whole interview? Um? The only thing that you can do at night. I really. I really want to encourage people to forget about making money. Honestly, it sounds crazy but focuses on your sharp ratios and your kelly ratios. They should be the number one thing: if you don't know what they are, you can google them.

They should be the number one things that you're paying attention to, and why is that? Because, even if you have a five thousand dollar account and you can show proper risk management, meaning that over an enormous sample size, you will not draw down more than you are making, so um. I like Kelly, ratios more than sharp ratios. I personally like them, and my Kelly ratio is somewhere around 1.75 to 1.85.

So what that means is that over a substantial sample of trades, I am never drawing down too much. It means that for every dollar I'm risking, I'm making a dollar 75 or a dollar 85 pound. What do your listeners do to make a living put a solid track record for one to two years and the shorter? Your background might even take three years now if you can show solid kelly or sharp ratio for one to three years, depending on who you are your experience, your background money will start to come to you like, you would not believe. Okay, I'll give you an example: um, I've been able to take an audited spreadsheet right, walk down the block to a local um, Edward Jones. You know who they are, they're, as a wealth management company. You know on in every city, there's always some um, uh, financial planners right. I've been able to walk down the block to an Edward Jones office, go and talk to four or five of their agents and say: hey, look at. I got this track record right here.

Do you think you can find some clients that might want to put up money to trade with me, and if it's audited. You can show it, and they're going to be tripping over themselves right, I mean, that's just an example of what you can Do when you have an audited statement, right. Still, I think the problem is that everybody's out there trying to make money they're not trying to produce; become good traders, right so anyway?

It's a very, very long answer to a straightforward question, but it requires a lot of explanation because stop trying to make money, guys: Okay, that's not how you're going to become rich. The richest people in this industry manage other people's money, and those that make commissions, there's no individual trader that is rich per see.

When you manage other people's money, you become extremely successful in the service, focusing on it. Not the results in your 5 000 account focus on. How can I take my 5 000 account results to produce enough of a verifiable track record that other people want to give me their money? That's the short answer right now.