Can I continue trading for living?

Quote from IT-EarlyRetired:

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 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 made 15% in the period of June to October last year... 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 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"... I don't have any idea in investing in recession.

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 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.

.. [/B]

Let me explain in simple terms how the market works, contrary to the opinion of some here. The big traders use two terms to describe ALL investors and traders... Smart Money & Dumb Money. They love it when you don't know/think you are trading against them and every failed move you have described above is exactly as they set it up. You statements add up to Dumb Money thinking.

You made 15% in a short period so 25% in a year should be a breeze; only problem was you blew up. Here's a reality check: if you can be a trader/investor making 25% a year, quit what you are doing and start managing other peoples money - they will throw it at you gladly. You'll be among the very best performers who have decades of experience trading various market scenarios. And you will do it with an exceptionally short learning curve after making a bundle of naive mistakes. Then you can write a book on how you did it.

While being around the top of the investor performance tables is one thing and 25% PA will put you up there, at the same time being able to cut it as a trader is quite another. But some here will tell you are not trading against the most ruthless, cunning competition… just yourself. Friend, when it to comes to money, you are in the lion’s den and you are dinner.

Just keep thinking as you do, doing as you have done and watch what happens when the market does it's next, "Well I didn't expect that!" move. No harm in dreaming so long as you don't think it's real... you have not paid you dues but one way or another if you continue you sure will.
 
IT-EarlyRetired:

you appear to invest in the word 'investing' irrational meanings
investing gurantees profit
investing excludes gambling
investing means correct thinking
investing equals success

but your investing has returned
" I've been suffered major anxiety depression these two months.
I have all the symptoms of post traumatic stress disorder.
I can't even manage my daily life well.
I've never had this horrible experiences ever.
Now I can only pray that I won't have physical problems coming soon."

IT-EarlyRetired + investing = disaster failure crisis . . . what don't you understand ?
 
Quote from IT-EarlyRetired:

I am about 50. I got laid off from a giant telecom R&D in NJ four year ago in a major corporate downsize. I took home equity loan, rented out my house and moved out of state. I started full-time trading in June last year with my 190K of IRA and 50K of my own saving. I trade individual stocks only. I made 15% total in the peak of last October. However, I made some big mistakes during market downturn in the past three months. I become 9% loss total so far. Above all, I emotionally made a mistake of selling my NJ home at a much below market price in January.--- contracted on last December and closed middle Jan. These two months major fed cuts made me realized that I should have hold it as a long term investment. I've been suffered major anxiety depression these two months. I have all the symptoms of post traumatic stress disorder. I can't even manage my daily life well. I've never had this horrible experiences ever. Now I can only pray that I won't have physical problems coming soon.

US and global market is going recession. Can I continue full-time trading at home for living? So far I have total only $210K assets (which include cash out from the sale of my NJ home) and $168K IRA. I have a child going to college this fall. I don't expect to become rich in stock trading, but I need to make living. I tend mentally disturbed and sell when the stock falls below technical stand point. IRA account is difficult to trade and perform in this market. I need to some serious advises how to do next about my cash and my IRA account.


IF this is not a troll here are my 2 cents:

I feel what you are going through. Depression and Anxieties are twin demons that need to be addressed first. Try to trade only when you feel confident and well. If you must do very carefully and keep your trading to minimum and learn as much as you can.

Feeling right is more important than trading. If your mind is upset your will not be able to trade well. With the months of spring hopefully you will feel better soon.
 
Seriously, what have you been doing for the past four years?

"I got laid off from a giant telecom R&D in NJ four year ago in a major corporate downsize."
 
Quote from trapstar:

My advice is to quit trading ASAP, find a job and follow the markets in your spare time, If you're forced to have to make a living trading with your very limited skills you will blow up like I have 3 times. Your 50 and can't have a blow up, I am a lot younger and I'm able to come back. I got BS in Accounting and took a job for less than market value just to get back in the swing of things. Your mindset will comeback, but in all honesty you have zero experience trading.
Bottom Line get a real job, and put your IRA in some ETFS and relax.
Good Luck

Right-Always listen to a newbie for that kind of advice. LMAO! Trapstar--listen son, go and spend about 8-10 years in these markets before coming around and trying to be someone. You only look foolish.
 
Quote from lindq:

You need to take a cold shower and wake up to reality.

50 is not old. It is only old if you think it is. For God's sake you're 15 years away from average retirement age.

So change your attitude. If you must, change careers or take some of your assets and invest them in getting retrained. NOW. Get off your ass and get working or studying. If you need help, get to a career counselor. (This doesn't include trading gurus.)

You will not make a living from your assets by trading stocks, because you are attempting to do so under the worst possible circumstances. The money you made last fall was due to the volatility and the bull market top, and will not easily repeat.

You will continue to draw down your accounts, which is a damn stupid thing to do. You've worked hard for that money. Wisely and conservatively invested, it can be worth a lot in 10 years when you really need it. You are still an an age where you should be working and earning, and you need to do that.

You want to end up in your 60's and running a cash register at Costco? Great. That's the path you're on. But you can change it. Up to you.

I'd go with this one.... your best odds with least amount of risk....but then again it's your choice...peace and good luck
 
Get a job after the market closes,study the markets for a few years and protect your capital at all cost while you learn. You can either be broke at 55 or have 5 years of market experience and a nice sized stake to get going with, your choice.
 
College? My daughter is in college and doing well w loans!

I kick her a few dollars here +there when I FEEL like it.. no OBLIGATION!! She is in India now, just came back from the Himalayas and doesn't screw around w drinking or drugs!!

Guess what.. focus on yourself FIRST! Get your own act together or you will not be well enough to see your grandchildren. BELIEVE me when I say .. your children will respect you MORE when you respect yourself and let them grow up!

That said.. I would not attempt trading now.. find some work to do where you see others who are MUCH worse off than you are.. you will appreciate your BLESSINGS.

Take care, be well +may God Bless You on your journey!

Mh
 
Back
Top