Is it possible to become rich by trading?

[d08]

You see that building? I bought that building ten years ago. My first real estate deal. Sold it 2 years later, made an 800,000 dollar profit. It was better than sex. At the time, I thought that was all the money in the world; now it's a day's pay.
-- Gordon Gekko (Wall Street, 1997)

You see even Gordon Gekko was a RE trader before he was in securities.
A good trader needs to know how to trade anything! Real-Estate, Stocks, Commodities, Options, Warrants, Bonds, Fixed-Income, Currencies, Cars, Equipment, Planes, whatever. And when he can't trade and stuck with the asset, he needs to know how to generate income and sell premium for it!

Gordon Gekko isn't a real person. Getting bit by a spider doesn't give you the ability to ignore gravity either.
If good traders need to be good at trading everything, why are almost all specialized? You dramatically underestimate the work that goes into thoroughly understanding instruments. Déjà vu time as well, I said something similar before..

 

[lawrence-lugar]

You see that building -- Gordon Gekko (Wall Street, 1997)

A good trader needs to know how to trade anything!
Real-Estate, Stocks, Commodities, Options, Warrants, Bonds, Fixed-Income, Currencies, Cars, Equipment, Planes

Wall Street was a 1987 movie, not 1997.
I know, because I have literally watched that movie easily over 30 times. -- also Rogue Trader. and Trading Places.

Getting bit by a spider doesn't give you the ability to ignore
If good traders need to be good at trading everything, why are almost all specialized?

I'm definitely a firm believer in specialization. The best people and performers have a true mastery of their craft.
It's like that year in 1993-1994 ...when Michael Jordan decided to play Baseball.

It's like being referred to a different, much more focused doctor when you have an ailment of some sort;
The General Practitioner is much too vague and basic.

I, for example, only know options. -- Everything else about the market is basically alien language to me.
Nor do I have an inclination to learn or attempt to master it all.
2018, d08...High-Five`

 

[InTheMaking]

My personal returns has been
- 40 to 45% annual returns in RE for last 5 years
- 85% annual returns in Trading for last 2 years

I think I'll keep doing both and keep adding additional streams of income over the years, because I need things to do after 4pm EST and while tenants are not complaining. I don't believe in specialization, because I am very fearful that one of this will collapse! To each his own!
Cheers!

 

[ElCubano]

don't mean to be rude but are you and El Cubano philosophers or traders. If the latter then why contribute this way?
Sure rich and rich is not the same but trading is not about morals or compassion, it's about taking money off the playground. Determination is what counts and not a conscience conflict whether it's deserved or not.

lol. Sorry, was just defining my rich. I agree with you 100%, good luck.

 

[prc117f]

I am doing well, I have a couple of brokerage accounts to stay under SIPC. my trading is 100% SPY and options. I bought my neighbor out so now I have even more privacy and my own mancavehouse waterfront property My wife is happy since the original house can stay pristine and I can my own place my way. Trading office etc..

The trick is risk management, not being greedy or letting emotions have any influence. Trading for me is routine and quite boring actually but I like it that way. If I want entertainment I prefer my hobbies or watching a movie, reading a book or messing with my phantom4 drones

 

[Neuroway]

Is it possible to become rich by trading? Of course. There are many traders who have become rich.

Ditto, DaveV. Perhaps the person who asked the question should ask first: "Is it possible to become rich by being an employee?"

 

[Zodiac4u]

Ditto, DaveV. Perhaps the person who asked the question should ask first: "Is it possible to become rich by being an employee?"

Absolutely, just ask one of those Dot.com startup maintenance people. Many more examples as well.

 

[Neuroway]

Absolutely, just ask one of those Dot.com startup maintenance people. Many more examples as well.

Agree... We should then rephrase the question like this: Is it more likely to become rich by trading or by being a maintenance employee in a dot.com startup? We already know that these two former options are way more probable than winning at the lottery, which is literally a statistical miracle. After all, we are rational thinkers, not hysterical believers, aren't we?

 

[misterkel]

Kennedy Sr was running pump and dump groups which would be illegal now in stocks. Still going on in crypto though.

And, despite being illegal, it's still happening in stocks.

 

[Steve Alexander]

if it is possible so why people choose to quit it?

I believe it is possible to become rich trading. To be more specific, it is possible for SOME people to become rich trading. Trading is limited by the depth to which one understands himself. Rich traders know themselves quite well. Knowledge of themselves gives them knowledge of others, and hence, the ability to accurately predict short-term future moves by other traders.

One reason one might choose to quit trading, even though it is profitable, is that it takes time (at least a small amount of time), and given that they have amassed enough money to suit their wishes, they decide to use their time elsewhere.