Correct.
You should just be far better than the others in your specific domain. Because you should beat competitors only in that area. You can even be plain stupid for the rest and still be very successful.
Is active trading a viable job for an individual?
- Thread starter BYoung
- Start date
Correct.
You should just be far better than the others in your specific domain. Because you should beat competitors only in that area. You can even be plain stupid for the rest and still be very successful.
I personally know a trader who was in the S&P500 pit in Chicago, he made 2 to 4 mil a year.
He quit when he had to go screen.
I know another guy he's a market maker, in the 80s and 90s on the floor, since after 2000 on screen. When I ask him if he ever thought about quitting he says : "EVERY DAY"
He quit when he had to go screen.
I know another guy he's a market maker, in the 80s and 90s on the floor, since after 2000 on screen. When I ask him if he ever thought about quitting he says : "EVERY DAY"
I co-owned a brokerage in 90s and know a few other owners and brokerage staffers today, each bounce around these stats. There are appr 60-90k new traders in USA alone every year and many are what keep brokerage open for smaller firms. Hedge funds -larger have there own brokerage but might clear through others. Many have thought they be able to crack top ten and why so difficult is in order to get up there, you will have to hire fairly large staff and trade around the world 24 hours a day. One name might stand out like Buffet, Soros, Rogers, Trout but each have large staffs if they want more. Not easy pushing across large complicated orders during other than open/close. Trading I believe toughest way to make a buck in the world as so many put huge value upon it.
Robert Morse
Sponsor
What broker?
I agree. If they made 500%, trading O.J. they are specialing and reach a cap eventually as there are limits of contracts whereas Financials or all commodities it would offer continually income till hitting larger size as who going to take other side and do they have more clout. Every individual takes losses and sustaining those numbers, I don't see lasting forever.
His pursuits always amaze me. He’s like a chain smoking genius
https://www.newyorker.com/magazine/2017/12/18/jim-simons-the-numbers-king/amp
His pursuits always amaze me. He’s like a chain smoking genius
https://www.newyorker.com/magazine/2017/12/18/jim-simons-the-numbers-king/amp
Very interesting!
From what I have seen, the markets have a way of thoroughly destroying false hubris in a trader.
One of my early mentors was a spread trader who by most accounts was the largest spread trader ever in the CBOT 30 Year Bond Pit. We used to sit down together, review my trade cards, and rehash what I was thinking when I got into and out of a position. He graduated Yale with Honors and came from a wealthy family, so he had every right to feel "super smart and talented". He told me that every single morning without exception, as he walked on to the trading floor - he had a terribly wrenching stomach and felt very anxious.
His very first rule to me: always take your losses.
Well how about this then. I started day trading in 2004 and the year 2017 concluded 14 losing years in a row in directional trading be it as a pattern day trader, directional options, or futures trading. I have done it all.
I have had some success in long term holds, cryptos, and option selling but my passion is trading and that has eluded me.
My point is to the thread starter, that having success in the business world ( at retirement I was Assoc VP of Finance for a major University) does not in ANY way transfer to being a successful trader.
If you start trading you will be convinced that the market knows you better than you know yourself and its sole purpose of existing is to take your money.
At age 73 now, all I can say is that I am 14 years closer to being profitable than when I started. And I have the gift of resilience and perseverance as I will never give up. I remain optimistic and 2018 thus far is slightly profitable trading ES, CL, and GC, so maybe this is the year I turn the corner.
My advice is to do 4 things. (Assuming a losing trader is allowed to give advice.)
1. KEEP YOUR JOB
2. Read all the posts of Xela and Handle. You will learn a ton there.
3. Take Xela's advice to demo trade, demo trade then demo trade some more.
4. Then live trade CL and GC from the 5 AM to 8 AM period prior to going to work. ES does not move consistently until the Cash Session opens but Oil and Gold can be traded in that time frame.
Seriously? You would be 14 years closer to death. I would have given up and enjoy your last remaining years. There is nothing special about trying to figure out trading. It's not like the world is going to build a monument in your honor like they might do if you cured cancer or discover cold fusion.