Full-time trader

[JMowery1987]

To add to the last post... read books... but make sure you read Mark Douglas' books.

Don't waste money on books that try to teach you to daytrade using pointless indicators that are lagging.

Either way, good luck to you. I respect anyone that does this and is successful.

As the people at NIKE say.... "JUST DO IT" and see what happens.... just manage your money correctly. Survival is the key.

Edit:

Trade the way you want to... why ask us how YOU should trade.

I like to trade on an intra-day basis. Others like to trade on a longer timeframe. Try it yourself, see what you can do, experiment.

No one else can tell you how to trade.

"Can it be successful as a long-time individual investor (you know, someone stay at home to trade and make the living)?"

Anything is possible... asking us does you no help at all.... actually your whole post now that I think of it was pointless. Trade the way you want, experiment, see if it works for you.

And that is where the thread ends... hopefully

Bye

 

[WmWaster]

Quote from JMowery1987:

To add to the last post... read books... but make sure you read Mark Douglas' books.

What Mark Douglas' books shoud I read?

Edit:

Trade the way you want to... why ask us how YOU should trade.

If you ask me, I like to trade futures due to its leverage effect and high returns.
I think I can get more from futures than from stocks.

"Can it be successful as a long-time individual investor (you know, someone stay at home to trade and make the living)?"

Anything is possible... asking us does you no help at all.... actually your whole post now that I think of it was pointless. Trade the way you want, experiment, see if it works for you.

I know anything is possible, but it's not the main point.

If you read my prevous messages, I did say I had experimented in the market with real money already! So far so good. But success in the past doesn't guarantee success in future. And a full-time trader seems to be a great commitment.

Also if I trade full-time for a long time, it may cause difficulties when I wish to go back to the employment market (no one wish to hire people who don't work for a long time).

Asking people did help, especially if they are also full-time traders. I can hear what they think as a trader (what difficulties they may face, and so on). From their experiences, it gives me good references and can facilitate my decision.

 

[WmWaster]

Please, please try this first before you go full-time:

1. Read every book on the subject.
2. Read all the posts on this site.
3. Practice trade with a $10k account for at least one year

Best of luck either way

1) I read many books. But surely I couldn't be able to read EVERY book about investment.

2) Not yet, not to say read ALL posts!

3) Did. Already traded in market with real money.

 

[mschey]

The transition to a full time trader is a major decision that requires you to put together a business plan. Like any new business, it is very difficult to succeed. That being said, there is no better lifestyle when you trade well. You have personal freedom, you don't have to answer to a boss, and you can make a great living at it.


The number one reason for failure is lack of capital, you need to have reserve trading capital, and you need to have savings to cover expenses for several months (at least 6)in the event that the market becomes tough to make money in or your strategy just doesn't work anymore, and you are forced to recreate your trading edge. (This will happen, so you must constantly research new ideas!)

If you have a plan, and the capital, then jump into it. If you don't have the capital, then adjust your plan to work for a few years while position trading and build your capital base.

Good luck!

 

[WmWaster]

Quote from mschey:

The transition to a full time trader is a major decision that requires you to put together a business plan. Like any new business, it is very difficult to succeed. That being said, there is no better lifestyle when you trade well. You have personal freedom, you don't have to answer to a boss, and you can make a great living at it.

The number one reason for failure is lack of capital, you need to have reserve trading capital, and you need to have savings to cover expenses for several months (at least 6)in the event that the market becomes tough to make money in or your strategy just doesn't work anymore, and you are forced to recreate your trading edge. (This will happen, so you must constantly research new ideas!)

If you have a plan, and the capital, then jump into it. If you don't have the capital, then adjust your plan to work for a few years while position trading and build your capital base.

Good luck!

Hey, do you trade full-time or part-time?
If part-time, what do you do?

I don't need to be very successful or get rich quick, as long as it can sufficiently fund my living, it is success to me. The main reason I would like to be a full-time trader is personal freedom and more free time to pursue my aspirations.

So, from what you said, to be successful in full-time trader:
1) Have good sum of capital to trade
2) Have some reserved capital to pay for regular/daily expenses (at least 6 months)
3) Have good plans & EQ to win in the trading game

Other than that, anything else?

 

[WmWaster]

As you say, one's trading formula may not work anymroe in one day. But does it happen suddenly on one day, or are there some signs about that before your formula become useless (eg the risk/reward ratio becomes worse and worse)?

Based on your experience, how often will it happen (roughly)?

Finally, I think I do need to leave a "backdoor" for me, so in case if trading no longer works, I still have something to depend on.

One problem of being full-time (individual) trader is the long disconnection from the employment market. No one wishes to hire someone who have work experiences at home only!

What "backdoor" can I secure? Take a part-time or nightshift job? Or else? Any idea?

 

[Kastro_316]

Not sure if you posted this, but do you have any education? Something good to fall back on?

Why not become a CFP, CMT, (I could go on and on) and trade on the side. When you are confident, quit, and trade full time.

I find the best way to learn is to fail Once you fail, you should never, in theory, fail again.

Good luck!
-Kastro

 

[WmWaster]

Quote from Kastro_316:

Not sure if you posted this, but do you have any education? Something good to fall back on?

Degree holder-to-be.

Why not become a CFP, CMT, (I could go on and on) and trade on the side. When you are confident, quit, and trade full time.

Sorry for my ignorance.
What's CFP, CMT?

I find the best way to learn is to fail Once you fail, you should never, in theory, fail again.

I hope not.
Only fail on sim/demo/paper trade; but never on real trade.
As long as I can control my emotion, if I can win on paper trade, I think I should be able to win on real trade.

 

[mschey]

Quote from WmWaster:

Hey, do you trade full-time or part-time?
If part-time, what do you do?

I don't need to be very successful or get rich quick, as long as it can sufficiently fund my living, it is success to me. The main reason I would like to be a full-time trader is personal freedom and more free time to pursue my aspirations.

So, from what you said, to be successful in full-time trader:
1) Have good sum of capital to trade
2) Have some reserved capital to pay for regular/daily expenses (at least 6 months)
3) Have good plans & EQ to win in the trading game

Other than that, anything else?

I trade full time. I started 5 years ago with 25k in risk money, and 1 year of expenses, and no tradeable edge. It took three months, and I lost half of my trading capital, before I was able to turn things around. I put in many 18 hour days figuring out how to trade the market for income. That is an important distinction to make. I learned how to trade for income, strictly day trading.

If you are going to trade part time, you want to focus on maximizing your returns so that you can build your account. You will need to focus on swing trading to accomplish this.

Mike

 

[WmWaster]

Quote from mschey:

I trade full time. I started 5 years ago with 25k in risk money, and 1 year of expenses, and no tradeable edge. It took three months, and I lost half of my trading capital, before I was able to turn things around. I put in many 18 hour days figuring out how to trade the market for income. That is an important distinction to make. I learned how to trade for income, strictly day trading.

If you are going to trade part time, you want to focus on maximizing your returns so that you can build your account. You will need to focus on swing trading to accomplish this.

Mike

So you have traded for 5 years, right?
Did you quit your job and trade full-time, or trade is your first career?
Now can you manage to win easily or get stable income from trade?

What do you think as a full-time trader?
Any good and bad things?

To me, I'm a bit lucky. My capital has never shrank when the first date I traded. When I first traded, I didn't really learn much. I started off with blue-chip stocks. I did some research on them, and select some of them. All trades were profitable (and at that time, it was not a strong bull market, not nearly most stocks are rising).

Being more confident, I started to widen my range and start to analyse more stocks. Nearly all of my stock trades were profitable.

I realised the danger of the market. So I don't really feel too proud and forgot the history. I knew market disaster might happen on one day, so I borrowed books and learnt how to escape from market disaster/slump.

Now I have equipped myself better with technical analysis, strategies, risk/money management.

I'm still looking for ways to improve my trades. Now I would like to engage in trade system & automated trades. Hopefully this can further ensure my winnings.