How Common Are Really Large Successful Traders

[Fundlord]

The article I saw said the brokerage firm couldn't confirm the info. Yet, nothing wasn't mention about any tax returns.

Also, any trader on the Tokyo Stock Exchange that trades size like that are given a special ID as a professional trader. Simply, he's not a retail trader.

Ok maybe I shouldn't have used the term retail trader.

From now on "individual investors" guys who trade on their own behalf and take all the profits. They can have whatever qualifications/special id/seat/office etc They just have to work for themselves, trade their own money and take all the profits.

 

[wrbtrader]

Ok maybe I shouldn't have used the term retail trader.

From now on "individual investors" guys who trade on their own behalf and take all the profits. They can have whatever qualifications/special id/seat/office etc They just have to work for themselves, trade their own money and take all the profits.

Now things gets more interesting because it opens the door. Although still not common but more traders will qualify such as former hedge fund managers that walked (quit) away with big fat bonus with severance packages in the multi-million dollar range along with the fact they've already made millions...accumulating such.

Some of them then decide to trade their own capital...very successful at such while putting on some very big trades but they tend to trade markets that the typical retail trader like you and I do not trade (e.g. derivatives).

They also keep very private about their trade performance. Simply, if they're putting on trades greater than 10 million...they ain't gonna to talk about it and they have access to resources you and I do not have access to along with still using their network (contacts) to benefit financially from.

 

[DDR]

From all my contact with pro traders as limited as this is, they have all stressed as a priority to pay much attention to risk management and to never bet big.

I don't doubt that some retail or pro traders have had massive wins but have also heard they give it back due to the psychological factors that follow a large win. The exception to this would be a seasoned trader that has already gone through this and learnt that lesson.

As home traders we want to believe the big win stories because this can reinforce our own belief that we can do it. But this is not substantial enough to simply read some thing online.
With out hard evidence it's only a story. The only proof that can be relied on is if an independent tax audit has been carried out on that traders activity and only if you yourself have initiated it.

But this is never done by the reader and never offered by the trader.

The other thing the pro trader told me is to not look outward for trading success, it all has comes from you. This will only come after the years and hard work are completed.

 

[Trader22]

Most traders I know that do it for a living don't make more than $500K a year. Those turn nothing into millions stories should be ignored. They are not the standard of successful trading and delude your mind with false hope and unrealistic expectations.

There are some rags to riches stories, but they are very, very rare.

 

[Trader22]

I know of 2 retail traders that trade large positions, but not 10s of millions. One trades 250k on option swing trades and the other trades much larger than that (500k-2M)

 

[Trader22]

I would define any year with a negative draw-down as unsuccessful once a trader becomes profitable. The expenses a retail trader has a sole source of income warrant an increasing equity curve not just steady returns, as you mentioned, health insurance, high tax on gains, etc.

Trading is becoming even more futile for retail traders, I advise them to abandon this lost cause, due to the recent advancements in technology. You can say you're not competing with institutions but your stops and limit orders are filled or not filled due to their algorithms.

LOLOL

 

[Xela]

There are some rags to riches stories, but they are very, very rare.

They're also barely relevant. These are typically stories that involve a lot of luck, I think (whether the luck's apparent in the story or not).

From all my contact with pro traders as limited as this is, they have all stressed as a priority to pay much attention to risk management and to never bet big.

Absolutely. The professional's focus is invariably on risk-management. Many retail traders are chasing profit-maximization at the expense of risk-management.

 

[d08]

Why do you need a prop firm if you are in the uk you can trade CFD's with some stupid amounts of leverage if you wanted to. As for retail fees, they only play a large role if you are scalping and go for small profits.

Direct access CFD brokers don't offer leverage similar to prop shops (1 to 20 and up), the other types of CFD brokers are just bucket shops designed to eat your profits through big spreads.

 

[Q3D]

They're also barely relevant. These are typically stories that involve a lot of luck, I think (whether the luck's apparent in the story or not).





Absolutely. The professional's focus is invariably on risk-management. Many retail traders are chasing profit-maximization at the expense of risk-management.

One can understand the retail trader's apparent need to increase an equity curve. Do you believe that retail trading as a sole source of income is impossible, therefore one should just focus on managing risk?

Multi-million dollar day trader Don Miller writes books, mentors, and says on Youtube he runs an outside business away from trading for sustainable income, while also having a CME membership. Therefore if expert day trader Don Miller requires multiple sources for "sustainable income" while being an extremely profitable day trader, no one can provide a [large] sole and sustainable source of income from day trading over a multi-decade period.

 

[d08]

Just because this "Don Miller" once was a good trader doesn't mean he still is.
I've had trading as my sole income for 6 years, so it's doable. Don't expect to raise a family and live comfortably starting with $25k though but if you're extremely thrifty and can minimize expenses then it's possible to start with that. The only way is to build up equity to the point where living expenses aren't a big part of your account anymore.