Some Simple Math
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description
Some Simple Math. 50% Annual Returns ~ 4% per Month. Some Simple Math. 50% Annual Returns ~ 4% per Month Portfolio: $50,000 $2,000 per Month. (More) Simple Math. $50,000 portfolio 25% allocation to a position (risky???) $12,500. An Example Trade. An Example Trade. - PowerPoint PPT Presentation
Transcript of Some Simple Math
Some Simple Math
50% Annual Returns
~ 4% per Month
Some Simple Math
50% Annual Returns
~ 4% per Month
Portfolio: $50,000
$2,000 per Month
(More) Simple Math
$50,000 portfolio
25% allocation to a position (risky???)$12,500
An Example Trade
An Example Trade
Capital Required: $11,565
An Example Trade
Capital Required: $11,565
Return on Risk: 21%
An Example Trade
Capital Required: $11,565
Return on Risk: 21%
Returns: $2,435
What You Think Trading Is Like
What Trading is Really Like
Realistic Results
50% per year?
Sexy.
3-5% per month?
Boring.
Realistic Outcomes
The Winning is the Easy Part
What happens when you’re wrong?
Realistic Outcomes
The Winning is the Easy Part
What happens when you’re wrong?
Capital Required: $11,565
Max Risk: $11,565
10% Overnight Drop?
Loss of $11,565???
10% Overnight Drop?
Acutal Loss -> $3,500
