Considering day trading for a living

Quote from dasnemesis:

Just to clarify, I've been using a simulator in addition to real trading - it's just that I've been doing more long term investing with my real money than swing trades and the like.
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If you've been doing long term investing then certainly you've made $$ the past couple years. But as a trader you need to be able to make money in ANY market --- up or down. How much money have you made so far shorting stocks? If none, you need to think long and hard about how you'd generate income (i.e. profits) in a bear market.

I always think of a football analogy --- how many teams win consistently if they ONLY employ a running game (or passing) and don't use the other offensive option? Same with trading --- you need to play both ways if you hope to make money as a trader.
 
Quote from dasnemesis:

Also, would you say $25,000 is enough to start with? (Just enough for a Scottrader Elite account)
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In my limited experience (25 yrs) meeting hundreds of traders, I have not met one who did not lose their initial stake AT LEAST once. In my opinion you are asking a trick question as I don't think there is a magical amount to start with or maintain to be successful. Doesn't matter if the initial stake was $25 or 5, or 500k. In reality it is the cost of "Trading School" which is or actually should be as expensive as med or law school as the rewards can be as or many times more.

While trading really is very straightfoward (all you need is a good business plan, trading plan, strict money management and emotional control) but for all but the very very very few, good guidance and mentoring are essential.
 
Since it hasn't yet been mentioned, another option is to keep the 9-to-5 job and daytrade the Asian indices or FX at night. You can setup an account with IB for as little as $5k and get free data to Singapore, Sydney, and Hong Kong futures exchanges (disclaimer: $10 monthly activity fee if you don't trade $30 in commissions/month, and no interest on balances <$10k).

This isn't meant as a recommendation nor an endorsement, just trying to dispel the notion that it's either work OR daytrade (not both) and also that US markets are the only viable options. With futures, there's no reason to go to a prop firm/trading arcade (I would avoid them). And with the ease of access to foreign markets, there's no reason to be confined to only trading US markets/trading hours.
 
Quote from dasnemesis:

Greetings everyone. I'm one of the many people out there dissatisfied with being a 9 to 5 office peon...not that I'd enjoy being a 9 to 5 office manager either. It's just the daily routine of commuting and having to deal with so many people - rather tired of it. I actually spend a lot of my time at the office staring at stock charts and reading financial/economic news.

So then it hit me, if I enjoy doing this so much, why not try my hand at being a day trader full-time. I actually first got the idea a couple of years ago from one of my distant cousins who trades for a living, but didn't give it serious consideration until now. Of course, I don't have the illusions of a typical twentysomething bent on making a quick buck. It's risky as hell. I've had to endure some painful losses in my two and a half years of playing the market so far. Even my cousin who got me started lives a relatively modest life, staying at his family home and driving an old Honda.

That said, I'm wondering how good you have to be in order to live off day trading alone? I certainly at least have a knack for doing my research, as I spent the time after I graduated from college before I got my full-time job analyzing charts and fundamentals. I think all I'm lacking right now is time and perhaps a little more starting capital.

So how did you guys get started? Anything in particular that's a must-read if one wanted to pursue this type of career?
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I think it would be interesting if you would let us know what you finally decide.
 
Quote from InvestorTerry:

I think it would be interesting if you would let us know what you finally decide.
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I'm going to do a hell of a lot of reading over the next few years. Heh. I know that much. And I'm leaning towards being a swing trader rather than intra-day. Swing trading, as was mentioned before, would mix well with my 9-5 job and I'd learn from it over time.
 
At least you aren't like most people on this board who ask that question, that have 10k, but still with 25k it's not likely that you could make enough money to live off of.
 
Quote from dasnemesis:

I'm going to do a hell of a lot of reading over the next few years. Heh. I know that much. And I'm leaning towards being a swing trader rather than intra-day. Swing trading, as was mentioned before, would mix well with my 9-5 job and I'd learn from it over time.
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That sounds like a good idea, better to go slow then to burn your capital. Try paper trading to begin with.
 
Find a mentor, ie join a prop. Will cut down learning curve period significantly.

Quote from dasnemesis:

I really appreciate all the replies. I guess I definitely need to more closely measure my success with paper trading. I've been using a simulator at Zacks.com and done very well, but my style there has been more long term. I'll set aside a virtual portfolio for day-trading only and see how well I do.

I consider myself exceptionally disciplined and in cases of both heavy losses and great gains, I haven't let my emotions take my eye off the ball.

And just to clarify, I meant $25,000 disposable income. I'd definitely have savings aside from that amount in more secure investments.

Thanks everyone for your input. I'll be around here learning from you guys the next couple of years or so as I save up starting capital.
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HELLO, I read your initial post and a few of the responses. I will be happy to give you a bit of my time.

First off, I wish you the best in your endeavours(whatever they may be) and I hope you find all you are searching for in life.

I have been Investing and Trading Securities for 26 years. I began at this at an early age, 20 so you can guess my age. It has been my only means of income and financial growth aside from financial consulting contracts.

DO NOT QUIT your career or job that supports your income. With 25K capital can you generate enough capital growth to sustain even a modest lifestyle of $2000 a month to pay necessary bills? That's pretty damn tough to do.
IF what you are currently doing is unrewarding find something else that is rewarding.

Do you actually believe that after a month or a few months, 6 months, or a year you could become a successful Trail Attorney In Corporate/Tax Litigation Law?
Could you become a successful NeuroSurgeon? A Commercial Airline Pilot?
But after 3,6,12 months you can grasp the nuances of the financial markets and know everything about trading and investing/finance/economics and make 100%+, 200%+, 500%+, 1000%+?

No you CAN NOT MASTER ALL these areas of Trading and Finance in a few months. And let me assure you they are all very vital and important to your success..

AND You won't become a successful Investor/Trader in 3,6,12+ months despite what Internet people will tell you. These People will tell you that you can make 100%, 200%..1000% after a few months of trading and your wishful hopes and greed will buy into their BS.
You will LOSE your money to the other guy on the trade.

You need to educate yourself and go out and get yourself your OWN PHD in Finance/Trading/Economics etc. And anyone can do this IF they have the discipline to self educate themselves.
You want to be a Successful Trader?
Get a PHD in Trading.
And that takes time and self Investment, LEARNING, STUDY.

Keep your other job and trade on the side.
EDUCATE YOURSELF, strive to gain a PHD in Finance/Trading/ Markets etc.>

There is ALOT of BS on the Internet...Don't Buy into it.
That's your first successful trade.

Good Trading.
 
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