income potential
- Thread starter Boomer
- Start date
I know a few prop traders and they are all in the $100k-1M range. I realize that is a wide range but each has different styles, risk tolerance, and holding periods.
It can be done. You'll get a ton of talk on psychology around here, but when I get together with fellow traders we only discuss methodology and specific techniques. The assumption is you of course have the discipline to trade your method.
If you can find an edge in the markets then just keep on exploiting it day-after-day-after-day while that edge exists.
My formula is this:
(market edge + execution) * leverage = profits - lack of discipline
I know others will disagree with the psychological aspect, but I've never found psychology a big deal. You find an edge and you exploit it, simple as that.
It can be done. You'll get a ton of talk on psychology around here, but when I get together with fellow traders we only discuss methodology and specific techniques. The assumption is you of course have the discipline to trade your method.
If you can find an edge in the markets then just keep on exploiting it day-after-day-after-day while that edge exists.
My formula is this:
(market edge + execution) * leverage = profits - lack of discipline
I know others will disagree with the psychological aspect, but I've never found psychology a big deal. You find an edge and you exploit it, simple as that.
Alan - I was referring more to prop firms, where you negotiate your "deal" and there is no set-in-stone rate. Retail brokers like MB I think are less flexible and I doubt will deviate from their posted commission rates.
About psychology, some (Bright seems to say this alot) propose just finding an edge and working it. If you are doing this and are confident in your strategy, psychology would not be a factor.
However, if you are arbitrarily selecting your trades, based on gut feel and what you think you know about the market, (which is what I'm sure most people do - judging by the posts on this board!), then psychology is everything. Then the odds are against you, since the human brain is wired to make poor trading decisions.. Fear/greed and all that..
About psychology, some (Bright seems to say this alot) propose just finding an edge and working it. If you are doing this and are confident in your strategy, psychology would not be a factor.
However, if you are arbitrarily selecting your trades, based on gut feel and what you think you know about the market, (which is what I'm sure most people do - judging by the posts on this board!), then psychology is everything. Then the odds are against you, since the human brain is wired to make poor trading decisions.. Fear/greed and all that..
Or, how about this one...
(market edge + execution) * leverage = profits - (lack of discipline * leverage)
You are more than welcome to contact me or visit our office. I am the Atlanta Manager for Echotrade, which is located in Buckhead. If you are interested, just pm me your number and a good time to reach you.
ps. Go Dawgs!
ps. Go Dawgs!
I am also running a business and need to show a profit. If I do not seek out the lowest costs I can find - I am not running my business very well.