Positive Outlook

K

kcmike

Hello all.

This is my first post on ET. I've been lurking around for the last few months reading posts, taking notes..basically keeping my ears(eyes) open and my mouth shut..until tonight.

Here's my story (names and places changed to protect:) )

I've got a good job with a good company paying good money. I've been in the same industry for 10+ years. I've managed to put some money away and have been investing over the last few years. Nothing intense, just your usual...open an etrade account, pick a few stocks, keep your eye on the headlines and closing prices, sell for profit, sell for loss in Dec, etc, etc.

Recently I've been contemplating a new career as a self employed trader. Day, trend, swing...whatever. Just something that I can do to make money and not put up with corporate politics, long hours, airport security, budget cuts, fanatical bosses etc.

As stated earlier I've been reading alot of posts on these forums and there is a serious underlying negativity. Every time a newbie like myself pipes up, everyone writes that day trading is "tough", "it sucks", "it's only for the strong, disciplined", "you can't make it without an iron will and a calculating brain", "it will take years to make a profit and even then it will be pennies".

My question(s): Is there any positive outlook? Is anyone having fun? Does anyone support their family and feel that they are a little more "free" then the rest of the cube dwellers? The success rate is low, but how bad can it be?

I'm not worried if I'm smart enough. I do worry if I can take the pressure of making a living not working for someone else. I just wanted to see if anyone enjoys this field. Everyone talks about the psychology of day trading being the most important part. What about the psychology of being stuck working for a company that you don't care about and definitely does not care about you.

I'm sorry for the long post. I guess I needed to put a few things down in writing. I guess I'll skip this weeks therapy session:).

I look forward to your positive responses. If they're negative...bring 'em on. Everyone has a right (most have a left too :) )

Cya soon on the trading floor!

kcmike
 
Indeed, Metoox is correct. All one has to do is to obtain the proper education and experience. After that, simply find enough money to fund a trading account and put in the time to research and test an approach that provides a measurable edge in at least one market. Then have the discipline to prepare, and execute your plan every trading day, keep records, analyze and evaluate results, adapt to changes, and sit through periods of boredom followed by frenetic activity. Leaving the infrastructure issues aside, and depending upon your emotional makeup, operating in the financial markets can be quite rewarding. Now that I think about it, it is really quite simple? Best Regards, Steve46
 
Welcome,

I’m not an old time trader so my perspective is that of a not quite so new newbie.

First of all, understand that not everyone who posts here actually trade. Of those who do,
the general impression I get is that they are more than a little ticked off with companies
etc. who give the impression that trading is a piece of cake. And rightfully so. I think
thats behind a lot of the negativity.

Trading IS fun, thats why so many trade instead of having a J.O.B

How bad can it be? Well how important is money to you. How much do you need it.
How willing are you to loose every dime? Before you step off the ledge, understand its a
long way to the bottom.

There are plenty of people who support their families with trading. Most of them you’ll
never hear from.

I would strongly suggest that you have cashflow BEFORE you start trading. A source of
income unrelated to your trading business will relieve untold layers of stress.

There is a learning curve to trading. Everyday is a new picture on the charts. Some things
you’ll see over and over, but its those oddities that will bite you. All the fancy charts and
indicators will never replace time and experience.

“What about the psychology of being stuck working for a company that you don't care
about and definitely does not care about you.”

That sense of urgency might work against you. Be careful. Don’t give up on the idea, just understand there are no shortcuts.

Probably the most humane thing these old traders can do is slam dunk you at the get go.
Not that they want to scare you away, they just want to wipe away the stars in your eyes.
 
I have been Day Trading for just about 1 year now. I have been hovering right around breakeven for the past couple months.

There is no other place I rather be on Monday mornings than sitting in front of my 2 19' flat panel Dells waiting for the opening bell to ring. I find trading fun, yet, at times it has been the most torturous activity I have ever engaged in.

good luck
 
Quote from steve46:

Indeed, Metoox is correct. All one has to do is to obtain the proper education and experience. After that, simply find enough money to fund a trading account and put in the time to research and test an approach that provides a measurable edge in at least one market. Then have the discipline to prepare, and execute your plan every trading day, keep records, analyze and evaluate results, adapt to changes, and sit through periods of boredom followed by frenetic activity. Leaving the infrastructure issues aside, and depending upon your emotional makeup, operating in the financial markets can be quite rewarding. Now that I think about it, it is really quite simple? Best Regards, Steve46
More...

This sounds almost perfect ....... one thing I would add is "Not to lose faith in yourself" when the rough patches come.

Best of luck!
 
The reason trading is hard at first is that there are a lot of mental skills and disciplines that need to be learned that aren't natural to you at first. What makes it even harder is the only way to develop these skills is to get actual on the job training and experience for yourself how being a consistently profitable trader is achieved. While getting this trading experience you won't yet have the skills to be successful and you will inevitably lose money in the process. This is the point that some people just give up or aren't able to continue on. However, if you do continue, the correct mental skill set can be developed from experience and you can then become consistent and it will seem like the easiest thing you have ever done.

But you'll want to not carry the same mindset into other parts of your life because the trading mindset is very unemotional and feelingless and can be present even when you're not trading and this is not good. You will get so hardened emotionally after learning how to trade profitably, which is necessary for trading, but not good if you are numb to the joys of life and everyday experience.

Good luck.
 
You really do have to understand that the vast majority of people here couldn't trade their way out of ripped paper bag. Yes, it is possible to make consistent money and support a healthy :) lifestyle

You are lucky in that you are new to trading. The more you know the harder it will be to learn.
You must understand and believe, that trading successfully is about consistency and this is derived from your psychology. The quickest way, I believe, would be to forget everything you know and have been told about the markets. Then purchase the book Trading in the Zone, by Mark Douglas. Read it and incorporate his ideas into core beliefs.Then work on completing the trading exercise.
You should have enough funds to live on. Expecting to profit will cause hurdles that are very difficult to overcome. You can even keep working while doing this if needed/wanted. If you choose this idea and want a system for the exercise, pm and I can help.
 
I strongly suggest that you refrain from rushing in to gain 'on the job' experience before you are mentally ready, like what I suggested above will create.

Rushing in would have the negative effects of learning bad habits and attitudes. Once learn't these can be VERY DIFFICULT to overcome.
 
I submit that without getting experience you cannot develop the necessary mental skills to be consistent. Of course, you don't just rush in and of course you must first learn all the basics of what you are doing, and have plans of action and rules, but I believe you either do it(and immerse yourself) or you are just delaying your awakening.
 
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