Yes he did start with $600 but you need to read this in the context of the post.Trading Leech wrote:However, I'm still confused. He is saying that he started trading futures with $600
From his post we find that he started in the early 70â€™s and at that time sufficient capital to trend trade futures was deemed to be $20K to $40K
This means he only had 1.5% to 3% of the capital deemed sufficient.
Fast forward to today.
You have $10,000 to trend trade with and at this time sufficient capital would be deemed to be $500K to $1mio (this is open to debate of course)
This means you have 1% to 2% of the capital deemed sufficient
It would seem that both you and Leonardo are in the same boat here (more or less)
Now from this website;
We find the Purchasing Power Calculator which compares the relative value of a past amount of dollars to a present amount (Note: calculator is current only to 2010).
Plugging in the values we see that that $600 in 1970 is equivalent to $8390 in 2010 (if you use the â€˜economic powerâ€™ model) and I would guess that could be closer to $10,000 today in 2012 . . . again, if you use the â€˜economic powerâ€™ model
So, once again, It would seem that both you and Leonardo are in the same boat here (more or less)
Now, what did Leonardo do?
He tells us exactly what he did in the post!!
Note also that Leonardo was working his plan for a full 9 months (experiencing â€œlosses & much frustrationâ€Leonardo wrote:I decided that to build a stake I would have to find a market which would inevitably have a large trending move. And low enough volatility to start with so I could build a relatively large position quickly with little money. I settled on one market that had a very long term upward bias but had been in a sideways range for more than 2 years. Cotton.
Things turned out better than I expected.
I was only interested in an up move, so the intent of my plan was to buy breakouts at new highs and if the breakouts didnâ€™t hold on the day of the breakout I would exit by the close and wait for a new high to enter again. I was willing to keep at this for as long as it took, even if it took 5 years.