Next Steps?

[Daytrading0831]

I’ve been trading (stock and options) for about 15 years with boom and bust results. After taking another beating during the meltdown this spring, I realized that overnight exposure and gambling with options were where I lost the most money. Starting in April, I committed to only day trading with shares (some overnight exposure) and I’ve had great success. Made $87k on a starting account value of $133k since April and did so consistently without a losing month so far. Also did this without really ever dipping into margin except on ETF trades.

I feel confident that my shift in style is a sustainable change given my experience and expect the results will continue. I’m also doing with this with a FT job, so I think my results could improve if I could dedicate all my attention to it. So question to the forum - what are the logical next steps to take this to the next level? I don’t want to just make a “nice” living doing this - I want to generate substantial wealth. Very interested in hearing from others who have made the leap.

Thanks I’m advance.

 

[MarkBrown]

day trading or swing trading future indexes is where it's at. if your trading stocks then your probably trying to use some logical sense to trade. throw all that crap away and focus on price action. also ask yourself do you know each day where the market will run to. do you have a thoroughly thought out daily plan. m

 

[fan27]

Made $87k on a starting account value of $133k since April and did so consistently without a losing month so far. Also did this without really ever dipping into margin except on ETF trades.

I feel confident that my shift in style is a sustainable change given my experience and expect the results will continue. I’m also doing with this with a FT job, so I think my results could improve if I could dedicate all my attention to it.

Keep the job. If you ditch the job your profits will be used for living expenses. With the job, your trading profits stay in your account and if you keep up your winning ways you will have a seven figure account in a short time. You have a had a nice run but it is short. Your focus now should be consistency and not blowing up.

 

[MrRenev]

In 1999 & 2000 daytrading was popular and many daygamblers made money.
Since march 2020 a large number of new daygamblers have joined (in particular barstool creator Dave Portnoy & his sports gambling fans), many of those daygamblers have used their stimulus checks.
If daytrolling works it is probably only for a few months and they will all get rekt soon enough.

If I knew you and did not like you I'd say go for it, quit your job and full time day trade.

I don't know you and if you did this you'd probably end up jobless and broke and hopeless and vote socialist which pulls our civilization down so... please do not quit your job.

Afaik daygamblers of the late 90s even thought they made some money got less risk adjusted returns than just holding NDX which went up thousands of percents.

If daytraders are making money atm I'm guessing it is not very hard and it does not take a whole lot of thinking.
There has to be a way to do this on the side, find some time (do the analysis in the evening and check the price in the morning then set limit orders?).
If can't... slightly higher TF...?

 

[El Trado]

I’ve been trading (stock and options) for about 15 years with boom and bust results. After taking another beating during the meltdown this spring, I realized that overnight exposure and gambling with options were where I lost the most money. Starting in April, I committed to only day trading with shares (some overnight exposure) and I’ve had great success. Made $87k on a starting account value of $133k since April and did so consistently without a losing month so far. Also did this without really ever dipping into margin except on ETF trades.

I feel confident that my shift in style is a sustainable change given my experience and expect the results will continue. I’m also doing with this with a FT job, so I think my results could improve if I could dedicate all my attention to it. So question to the forum - what are the logical next steps to take this to the next level? I don’t want to just make a “nice” living doing this - I want to generate substantial wealth. Very interested in hearing from others who have made the leap.

Well. It is easy to be excited over those results. However, you should keep in mind that the S&P 500 is up about 32 % in the same time frame. Yes, you have done better, but is that due to skill or just that the group of stocks you have been buing have done better than the market?

To be honest, I would not do anything based on these numbers. You might just have been lucky, and there is no guarantee that the better than the market numbers are going to continue.

Besides, if your income depends on your trading-success, you need to take money out every month. Hence, you need to make money every month. That means that when the market go against you, you will be "desperate" and might do trades you do not other ways want to do.

Regardless if you have been good or lucky, this has been an extraordinary time. Normally the market will do something like 3-5 % in this timeframe. Ok. Let's say you have an extraordinary talent, and beat the market with the same percentage as you have done since April. That means that you would have made approximately 7 % or so.

7 % of a portfolio of around 200k is 14 k. This divided on 7 months is $2k per month. That means that you have to take every gain you are achieving out of your portfolio to have 2k to live of every month. That's not much, unless you live in a third world country.

So, enjoy the good results and keep your job. I can almost guarantee that you will have to go back and get a job within not too long, if you take the jump now. So stick to it for another while, and consider quitting your job at a later time when it is more realistic to do so

 

[Daytrading0831]

Appreciate the dose of reality. For some context, I’ve been a good trader for a while. Just never consistent enough to feel confident in doing it FT. But let’s say I keep going at this pace for another year or so. Other than staying an independent trader, what options are available? Partner at a prop firm? Start my own? Automate the trading and start a fund? Looking for someone with experience making the jump.

I believe my strategy is scalable to a point. Automating it I’m not so sure about with lout some ML component.

 

[SanMiguel]

In 1999 & 2000 daytrading was popular and many daygamblers made money.
Since march 2020 a large number of new daygamblers have joined (in particular barstool creator Dave Portnoy & his sports gambling fans), many of those daygamblers have used their stimulus checks.
If daytrolling works it is probably only for a few months and they will all get rekt soon enough.

If I knew you and did not like you I'd say go for it, quit your job and full time day trade.

I don't know you and if you did this you'd probably end up jobless and broke and hopeless and vote socialist which pulls our civilization down so... please do not quit your job.

Afaik daygamblers of the late 90s even thought they made some money got less risk adjusted returns than just holding NDX which went up thousands of percents.

If daytraders are making money atm I'm guessing it is not very hard and it does not take a whole lot of thinking.
There has to be a way to do this on the side, find some time (do the analysis in the evening and check the price in the morning then set limit orders?).
If can't... slightly higher TF...?

Haven't heard much from them since the 2nd downtown

 

[Handle123]

Take signals on underlying and trade options 8-14 days to expiration.

 

[Fonz]

Appreciate the dose of reality. For some context, I’ve been a good trader for a while. Just never consistent enough to feel confident in doing it FT. But let’s say I keep going at this pace for another year or so. Other than staying an independent trader, what options are available? Partner at a prop firm? Start my own? Automate the trading and start a fund? Looking for someone with experience making the jump.

I believe my strategy is scalable to a point. Automating it I’m not so sure about with lout some ML component.

You make money now. It works for you, so keep it how it is. Review your trades and whatever you come up with, paper trade first and don't take the risk to undo what you accomplished.
And most of all, focus on the risks (all kind of risks). Regarding how much % of your capital you risk at 100K, you could divide it by 2 when you reach 200, and then by 2 again when you reach 500... Just an example.
The less you risk (% of capital, market exposure, direction, etc.) the less you can lose.
You could also think of your biggest drawdown and use it as a part of your risk formula.
Most traders think the more you trade the more you can make.. Sad.
Best!

 

[Laissez Faire]

So question to the forum - what are the logical next steps to take this to the next level?

I'd say only quit your job if:

1. Getting your job back or a new one isn't a big deal.

2. Your current job is a hindrance and you'd be able to make more money without full-time employment.

Nicholas Darvas was really succesful with trading as a part-time gig and had terrible results once he went full-time and monitored stock prices all day long.