Hogwash. 90-95% of newer traders lose their money. Most of the rest breakeven or make small profits. Thos who become successful will take much longer than 6 months to 2 years. Most of the successful people here will tell you they spent many thousands of hours of screen time to become profitable. And even most/many of them never learn.
Can I continue trading for living?
- Thread starter IT-EarlyRetired
- Start date
Hogwash. 90-95% of newer traders lose their money. Most of the rest breakeven or make small profits. Thos who become successful will take much longer than 6 months to 2 years. Most of the successful people here will tell you they spent many thousands of hours of screen time to become profitable. And even most/many of them never learn.
Don't trade again until you get some professional help from someone(s) that helps you get control of you personal life.
In addition, get a job...full time or part time that starts bringing some income into your household.
After you've resolved the above issues...
You can then explore trading again.
Last of all, if your kid isn't on a full scholarship...part-time job for the kid while at college won't hurt either.
Mark
LMAO ... this is some funny shit!
... and have you guys seen the threads around here? it's very apropro.
Are you kidding me?
You have 210k in assets and 168k IRA and you are getting depressed? Because you are not making riches daytrading?
There are people in USA, let alone the world, who do not even know where there next meal will come from. Suck it up and realize that you are in a better position than 90% of the people out there.
Unbelievable. If you only had a clue of what I and some others in my group were going through during our our first 9 months of trading. You probably would have committed suicide.
It sounds like you have the same problem a lot of DIYers seem to have - you're trading alone. No one to bump ideas off of, no one to yank you back into reality when you're off on the wrong tangent, no one to take responsibility for and so you take more risks. No one to admonish you when you make a mistake (except a blank face called the 'market' and your profit/loss statement).
And you have the worries of a short working life, a kid going to college and no other equity or income to speak of.
My opinion is you're mad to be gambling at this time. My advice (although I don't know you - better to speak to someone who does) - is get a job doing something. If it doesn't work out you have the freedom and capital to look for another, maybe even in a different location. I'm guessing you speak more than one language - that's a skill in demand. Once you have a job, do some trading as a sideline. The market will always be there.
And you have the worries of a short working life, a kid going to college and no other equity or income to speak of.
My opinion is you're mad to be gambling at this time. My advice (although I don't know you - better to speak to someone who does) - is get a job doing something. If it doesn't work out you have the freedom and capital to look for another, maybe even in a different location. I'm guessing you speak more than one language - that's a skill in demand. Once you have a job, do some trading as a sideline. The market will always be there.
Thanks for all your responses. I am really touched by so many enthusiastic people in this forum. However, my question is for serious full time stock investors not for traders.
Here I want to point out is that I actually mean "Investing for living" or make stock investing as my full time job. Ideally combing investing and trading will get the best result and minimize the risk. I want to be an investor and trader in the same time. I don't want to gamble my money. I don't want to be a day trader. I try to avoid short strategy. I diversify my portfolio and only purchase quality stocks. All my stocks can be a long term investment. I follow the rule. Many of you suggest that I should start with very small account to see if it would work for me. A small account is really for a trader, not for an investor. If your capital is $200K, an yearly return of 25% would be $50K. If your capital is $50K, you need to have 100% return to make $50K. Don't you have to take more risk to get 100% return? I think 25% return is not unrealistic in the year of 2005, 2006 for an "investor and trader". Unfortunately I was not in the market at that time. I don't know if there is any investing strategy to have 25% return in the recession, except gambling in very short term trading. I post my exact asset figure is trying to get advises from a full time conservative "investor and trader", who are only doing equity, not future.
I made 15% in the period of June to October last year as I had CHL, LFC, RIO, SID, RIMM, AAPL, GOOG, MON & etc. I made mistakes of selling high flying RIO, SID, MON & etc to purchase CITIBANK and Wachovia bank at price of $35 and $40. I thought financial stocks were in the bottom. I always followed technical chart to make buy and sell. I made exception for CITIBANK and Wachovia. It is a big lesson for me. In January I sold AAPL and GOOG after they drop below 200 days moving average to avoid lose more. I used the proceed to purchase more of CITIBANK and Wachovia. I didn't know sub prime problem would be that serious. When CITIBANK hit $18 Merrill Lynch strategist suggested financial stocks were still too expensive. I lose my mind of selling partial of CITIBANK at $18. I thought I would purchased them back at $15. It bounced back in four days. I've never have chances to buy back so far. I blow out my accounts in these three months. It is really a big lesson for me.
I was optimistic last year as full time "investor and trader". While NJ home price was going down and down, I thought about selling it to avoid further housing downturn, and used the proceed to add more capital in my portfolio. I can be more focus in "investing" than "trading". After I sold it, I found the economic was in recession. I don't have any idea in investing in recession. I can only put the sale proceed in the bank saving account for a very low interest rate, not mention US dollar is still depreciating. I realized that I should be a trader, not an investor in the recession. As a trader, I only need a small amount of capital. I should learn trading technique, not picking up good stocks. I should be an active trader or even day trader. I don't need to sell my NJ home. I should rent it out for a few more year. At least I have 5% return and the anticipation of bounce back of housing price. I sold the house in the very down market for a even below market price. It was completely a wrong decision. That's bothered me and drove me to the anxiety depression.
As for getting a job to make living, that would be my last choice. When you are approaching 50, it is not a good idea to get back IT field, especially after leaving for 4 years. There are plenty of young and smart new graduates with newer technology to compete with you. The employers are not interested in your old technology experiences. Of course, if I can't make money as a full time "investor and trader" in the coming recession years, I have no choice to find a job.
..
Here I want to point out is that I actually mean "Investing for living" or make stock investing as my full time job. Ideally combing investing and trading will get the best result and minimize the risk. I want to be an investor and trader in the same time. I don't want to gamble my money. I don't want to be a day trader. I try to avoid short strategy. I diversify my portfolio and only purchase quality stocks. All my stocks can be a long term investment. I follow the rule. Many of you suggest that I should start with very small account to see if it would work for me. A small account is really for a trader, not for an investor. If your capital is $200K, an yearly return of 25% would be $50K. If your capital is $50K, you need to have 100% return to make $50K. Don't you have to take more risk to get 100% return? I think 25% return is not unrealistic in the year of 2005, 2006 for an "investor and trader". Unfortunately I was not in the market at that time. I don't know if there is any investing strategy to have 25% return in the recession, except gambling in very short term trading. I post my exact asset figure is trying to get advises from a full time conservative "investor and trader", who are only doing equity, not future.
I made 15% in the period of June to October last year as I had CHL, LFC, RIO, SID, RIMM, AAPL, GOOG, MON & etc. I made mistakes of selling high flying RIO, SID, MON & etc to purchase CITIBANK and Wachovia bank at price of $35 and $40. I thought financial stocks were in the bottom. I always followed technical chart to make buy and sell. I made exception for CITIBANK and Wachovia. It is a big lesson for me. In January I sold AAPL and GOOG after they drop below 200 days moving average to avoid lose more. I used the proceed to purchase more of CITIBANK and Wachovia. I didn't know sub prime problem would be that serious. When CITIBANK hit $18 Merrill Lynch strategist suggested financial stocks were still too expensive. I lose my mind of selling partial of CITIBANK at $18. I thought I would purchased them back at $15. It bounced back in four days. I've never have chances to buy back so far. I blow out my accounts in these three months. It is really a big lesson for me.
I was optimistic last year as full time "investor and trader". While NJ home price was going down and down, I thought about selling it to avoid further housing downturn, and used the proceed to add more capital in my portfolio. I can be more focus in "investing" than "trading". After I sold it, I found the economic was in recession. I don't have any idea in investing in recession. I can only put the sale proceed in the bank saving account for a very low interest rate, not mention US dollar is still depreciating. I realized that I should be a trader, not an investor in the recession. As a trader, I only need a small amount of capital. I should learn trading technique, not picking up good stocks. I should be an active trader or even day trader. I don't need to sell my NJ home. I should rent it out for a few more year. At least I have 5% return and the anticipation of bounce back of housing price. I sold the house in the very down market for a even below market price. It was completely a wrong decision. That's bothered me and drove me to the anxiety depression.
As for getting a job to make living, that would be my last choice. When you are approaching 50, it is not a good idea to get back IT field, especially after leaving for 4 years. There are plenty of young and smart new graduates with newer technology to compete with you. The employers are not interested in your old technology experiences. Of course, if I can't make money as a full time "investor and trader" in the coming recession years, I have no choice to find a job.
..
since you seem like a swing trader or investor, why dont you hedge your profolio instead of trying to actively trade. You lock up alot of your capital in single stocks. Use option to make extra income or hedge against a down turn. You dont need to sell the stocks you're holding even if it takes a dive. You just need option basics like covered calls or protective puts. With these simple strat with your long term holding you will easily make 10-15% a year without risking 5% of you profolio at any one time. You already have the capital, all you need is sound money management. always always preserve principle. goodluck
become a truck driver
seriously, swallow your fucking pride and become a truck driver......and considering that many of them make 100k a year, it ain't that bad
why the fuck does every guy who either hates his job or gets laid off think he will make it as a trader
when you are a trader your competing against the richest, most connected, and smartest guys on the planet..........they will knock you out and take all your money if you don't have the will, intellect, and passion to succeed
seriously, swallow your fucking pride and become a truck driver......and considering that many of them make 100k a year, it ain't that bad
why the fuck does every guy who either hates his job or gets laid off think he will make it as a trader
when you are a trader your competing against the richest, most connected, and smartest guys on the planet..........they will knock you out and take all your money if you don't have the will, intellect, and passion to succeed