I'm 21 years old, couldn't enter University, planning to trade full-time.
- Thread starter zenon12
- Start date
Smarts doesn't guarantee success but it will open the right doors.
Only exception would be sle and rally mode. Otherwise I think you are basically right.
Probably the single best predictor even if the r-squared is Low.
I agree it definitely helps getting interviews and getting looked at. Especially at hedge funds. No doubt. My point is though when it comes to being a successful trader I don't think education holds much weight in determining success. One of the biggest /most successful traders I am friends with didn't even go to college. I went to a good school, but honestly, the things I learned in school are useless in the world of trading.
Usually math is a pretty important skill in the trading world. If you think you can trade full time on an account size of just 100k, I don't think you've run the numbers and perhaps don't have the basic math skills required for this business.
Let's say you study your ass off and you really do build trading systems that return 30% a year, every single year consistently like clock work. (this would put you among some of the worlds elites)
30% on 100k is of course 30k profit right? Take out 30% taxes, so you're left with 21k. Now I don't know about you, but 21k doesn't get me and the family through March let alone the whole calendar year.
Obviously it varies based on rate of return, tax rates, how much you're looking to pull out of your fund every year to live on, but a good general rule would be if you don't have 500k at least, you can't quit your job and trade full time. A million or two is closer to realistic on a reasonable rate of return.
Even 500k making 30% annually like clockwork is just 100k after tax profit. Not terrible, of course a family can get by on that pretty easily, but it's hardly living the high life.
And of course I hope I don't have to mention why it's damn near unheard of for people to make 30% annually like clockwork for a lifetime. A few years sure, maybe even 5-10 years. But your whole life, year in, year out, come on...
Last edited:
You are viewing the basic chemistry in the wrong way imo. Its just a test to see if you can stick with it and ultimately get a qualification that increases your earnings power. We are talking about a basic pre degree level here. The smart thing to do is complete a degree education AND learn about trading on the journey.
Usually math is a pretty important skill in the trading world. If you think you can trade full time on an account size of just 100k, I don't think you've run the numbers and perhaps don't have the basic math skills required for this business.
Let's say you study your ass off and you really do build trading systems that return 30% a year, every single year consistently like clock work. (this would put you among some of the worlds elites)
30% on 100k is of course 30k profit right? Take out 30% taxes, so you're left with 21k. Now I don't know about you, but 21k doesn't get me and the family through March let alone the whole calendar year.
Obviously it varies based on rate of return, tax rates, how much you're looking to pull out of your fund every year to live on, but a good general rule would be if you don't have 500k at least, you can't quit your job and trade full time. A million or two is closer to realistic on a reasonable rate of return.
Even 500k making 30% annually like clockwork is just 100k after tax profit. Not terrible, of course a family can get by on that pretty easily, but it's hardly living the high life.
And of course I hope I don't have to mention why it's damn near unheard of for people to make 30% annually like clockwork for a lifetime. A few years sure, maybe even 5-10 years. But your whole life, year in, year out, come on...
I'm aiming for way more than just 30% yearly return.
In a typical bullish year, S&P averages about 10% annually. Do you truly think you, as an amateur trader, can beat the index by 3 fold? You need to be humble or the market will humble you in the end.
Dan Zanger managed to get 23000% return on his investment in 2 years. Why not?