Day Trading to Multimillionairedom

[traider]

I used WealthLab4 before to backtest, still do use it but rarely. I have my own Python backtester and scripts for custom data.
Execution side is just IB API (ibpythonic) with pandas, numpy and many other helper tools.
I can do away with all commercial tools with ease.

Do you trade options? What is the data you use for back testing and where did you get it from?
Currently I'm using quantconnect but data is all in the cloud

 

[W-M-A]

What comes to your mind when someone tells you that he/she is a day-trader? I immediately know that I am dealing with a clueless amateur, no offence.

Brokers love pushing the day-trading narrative to retail traders. Their goal is to transfer the money from the trader's pockets to their pocket. It is in their best interest for you to trade as often as possible, in the largest size possible. It amazes me how "elite traders" in this forum still fall for that narrative.

Very few people can actually profit long-term from day-trading net of fees. In fact, the number is so small that it is generally advisable never to day-trade. You will never meet a successful day-trader. Most trading legends with verified track records were swing and position traders.

I know that some of you have high hopes of striking it big with day-trading, so you better take my advice very seriously because it will save you time and lots of money.

DAY TRADING IS FOR DUMB MONEY

If you have a contrary view, feel free to post your day-trading PNL for the last 3 years. You're welcome.

This business is no different than any other, or the fall of the events of a large number of events is no different than any other. In a selection of 100 randomly chosen people, 99 would say they are among the top, that is statistically verifiable top performers, the extreme version of Kruger Dunning effect. However the theory would tell you that only 3 of them would be real top performer, now lets put them aside and consider the more interesting aspect, 68 of them would actually manage to get along just fine in life and whatever they are doing in whatever field. Merely 16 of them would fail miserably to the point that they would be considered failures of the system. Thing is, do your best to not be among the 16 from the get go, by doing proper risk management and position sizing and keep going, you will be part of the 68 and put in the effort and and work yourself towards the 3, it is possible .

 

[d08]

Do you trade options? What is the data you use for back testing and where did you get it from?
Currently I'm using quantconnect but data is all in the cloud

Stocks, ETFs. Previously futures and vol as well.

 

[globalarbtrader]

Check out Nav Sarao who made $40 million day trading e-mini S&P 500 futures from his bedroom at his parents house.

https://www.bbc.com/news/explainers-51265169

And that ended well.

GAT

 

[Laissez Faire]

And that ended well.

GAT

You should check out the book if you didn't already.

 

[globalarbtrader]

You should check out the book if you didn't already.

+1

Read it twice.

GAT

 

[traider]

And that ended well.

GAT

I think the movie rights will be a millions + hedge fund consultant and he should be all set for life

 

[speedo]

What is there left for a man, who chose to quit, if not a life long lasting dissatisfaction & regret.

On the other hand, what do you get by sticking to it, for 5 - 10 years, -

everything.

It teaches a lot about yourself and allows you to play to your strengths and work on your weaknesses. Those who bail out tend to learn little of themselves and little of the nature of the markets.

 

[newwurldmn]

It's not that day trading for a living is all that difficult, the difficulty lies in the substantial work both technically and personally required to become proficient in a demanding profession. Doing a root canal is not that difficult for a dentist but that dentist got a Bachelor in Science, Graduated from an accredited school of dentistry and passed exams, received certifications and licenses before he or she could do a root canal.

Yet scores of people have read a handful of books, attended a seminar or two and viewed some "guru" videos on YouTube and think they can fund an account and trade? It takes most of years before we can trade with consistent profitability. I've been asked if I knew how long it would take and how expensive it would be would I have even started. I don't know the answer but I don't believe in regrets, it is what is is and am happy to be where I am. The main difference between myself and others like me and the scores of those who have fallen by the wayside is we didn't quit.

don’t underestimate luck.

 

[virtusa]

don’t underestimate luck.

A good trader has a good (positive) expectancy. The better the expectancy, the smaller the chance that it was luck if he made money.
Luck is inversely proportional to expectancy. The higher the expectancy the lower the luck, and vice versa.