2. Some Simple Math
50% Annual Returns ~ 4% per Month

3. Some Simple Math
50% Annual Returns ~ 4% per Month Portfolio: $50,000 $2,000 per Month

4. (More) Simple Math
$50,000 portfolio 25% allocation to a position (risky???) $12,500

5. An Example Trade

6. An Example Trade
Capital Required: $11,565

7. An Example Trade
Capital Required: $11,565
Return on Risk: 21%

8. An Example Trade Capital Required: $11,565 Return on Risk: 21%
Returns: $2,435

10. What You Think Trading Is Like

11. What Trading is Really Like

12. Realistic Results
50% per year? Sexy. 3-5% per month? Boring.

13. Realistic Outcomes
The Winning is the Easy Part What happens when you’re wrong?

14. Realistic Outcomes
The Winning is the Easy Part What happens when you’re wrong?

15. Capital Required: $11,565
Max Risk: $11,565

16. 10% Overnight Drop? Loss of $11,565???
9/11 gap down: 7.1%, flash crash range: 8.7%

17. 10% Overnight Drop? Acutal Loss -> $3,500
9/11 gap down: 7.1%, flash crash range: 8.7%