There are endless posts on.
(1) Can I turn $5000 into $50000 in X years?
(2) What software do I need?
(3) How do I workout which shares to buy?
(4) I'm about to sign up for XYZ course am I doing the right thing?
(5) How does a trader with limited funds get into trading?
To name but a few.--You get the idea.
Trading is really simple and as Radge has said more than once.
(1) Find something that works
(2) Test it.
(3) Trade it.---My apologies Nick but thats the gist of it.
Once you have that there are many things you can do to turn average profits into STELLAR returns.
To this end this post is intended to demonstrate that which is not so obvious to those consumed with the initial basics of a Share Trading/Investing Business.
Ive selected a System which returns an average 15% a year.Anyone could design a system with similar returns.
Ive done this purposely to make a point. Its not a system which is available to the public but is offered here as a demonstration only.
Firstly I tested it over 10000 portfolio's.
It starts with a modest $15,000 which I have also selected for a reason which will become apparent later.
(1) Firstly the Montecarlo results which show 100% chance of profit over 10000 simulations.
(2) The second shows the Initial Drawdown and the deviation in that drawdown over the 10000 portfolio's as you can see it is small with the actual average initial drawdown being 12%.
The period of trading is 1999 to 1/9/06.
Brokerage is set at a whopping $50 each way.
12.5% of capital is chosen as the allocation to each trade.
(3) The Third shows that if we started with $15,000 in 99 today we would have $46,000.
(4) Lastly we have a Positive expectancy of over 5 a very important piece of info.
Following this post will be tables showing returns if.
Without altering this very average system we
(1) Reinvest the profits from closed trades.
(2)Then we do (1) and Trade it on Margin ($15,000 being the minimum for BT margin lending)
(3) Then we do (1 & 2) and we wait till we have $30,000 rather than $15,000
to start trading/investing.