Does anyone *make a living* swing trading or long term investing?

[Don Bright]

Quote from stock_trad3r:

To make a living trading you need 200K or more of cash to begin with. Otherwise you simply wont make that much money. 10% of 50K is only 5K whoopdeedoo thats not much money.

Even 10% of $200K is not of any value. Another reason to "use" a $million or more with, maybe, $20K of risk capital. $$ use gets you into a lot of good, workable strategies. And, sounding like a broken record here again.....don't forget about all that interest our traders make on their short stock sales.

Don

 

[thriftybob]

I do, but I have a big account. When I started doing it full time I had a lot more that $100k. I think I made 25 or 30% the 1st year, and I think i did pretty good to make that. Keep in mind also that you only get to keep a little over 1/2 the profits after Fed and state taxes. Also you need to increase your account after withdrawls by at least inflation.

Honestly, I think expecting more than double what the major indexes make on a percentage basis would be setting yourself up for failure. Hey, if you beat them, great, but when you lose or don't make enough what are you going to do?

I also don't like using margin because then you're scared money and easily shaken out. There are good days/weeks/months and bad.

just my 2 cents worth

 

[Don Bright]

Quote from thriftybob:

I do, but I have a big account. When I started doing it full time I had a lot more that $100k. I think I made 25 or 30% the 1st year, and I think i did pretty good to make that. Keep in mind also that you only get to keep a little over 1/2 the profits after Fed and state taxes. Also you need to increase your account after withdrawls by at least inflation.

Honestly, I think expecting more than double what the major indexes make on a percentage basis would be setting yourself up for failure. Hey, if you beat them, great, but when you lose or don't make enough what are you going to do?

I also don't like using margin because then you're scared money and easily shaken out. There are good days/weeks/months and bad.

just my 2 cents worth

Just keep in mind that there is a gigantic difference between "margin" (scared money as you call it), and "using Firm capital" - where you're not responsible for losses in excess of your account balance (unless you break rules or something).

You can "use" 10 time your capital, make the same "return" percentage wise, and make 10 times the money. More accurately and lucrative, however, is simply the fact that you can take part in a whole different set of strategies that tend to be "lower risk, higher reward" but capital intensive.

Food for thought...

Don

 

[Joab]

Don with due respect.

I started with a 10,000 retail account in 1989 and after all living expenses and even buying 2 other business I still have a decent size account with 10% per month.

I've never really had a real job in the last 20 years, until I recently started trading OPM.

 

[Don Bright]

I may be off a decimal point or two, but if you took $10K and made 10% compounded each month, I get this number, LOL.

$ 8,726,096,153,025

Even if I'm off by a Trillion or two, why would you need to use OPM? Even if only a $ billion after taxes.

FV= PV(1+r)^n is the formula I used. Then FV= 10,000(1.1)^216

I'm just messing with you...it sounds like you did really well, and I'm always the first to congratulate success, no matter how it is derived.

But, since most newer people are starting with less than that, perhaps $20K, I just maintain that some of the easier, hedging strategies are working really well.

All the best,

Don

 

[Joab]

Quote from Don Bright:

I may be off a decimal point or two, but if you took $10K and made 10% compounded each month, I get this number, LOL.

$ 8,726,096,153,025

Even if I'm off by a Trillion or two, why would you need to use OPM?

Don

Don,

Did I mention I like to date lots of pretty American women, who like to shop.

I only wish I could have compounded it but like I said I live off most of it as it grows.

Best of Trades to you too....