let me say this: i secretly hope you can make a living off trading
the phrase âthe odds are stacked against you over the long runâ is like saying âthere is no Santa Clausâ to an eight-year-old
we dream, we want to be free . . . i do too . . .
but i donât want to fall into the trap of âlearningâ and âfeeling thrilledâ while trading, just for the sake of it. markets are interesting, but i do want to make money. consistently
what i donât want to do is to simply transfer my savings to intermediaries, who have a vested interest in keeping a very high turnover. So they are energizing, galvanizing, stimulating, involving, revolving etc. the trading crowd
i want to take a dry approach to the situation, instead
if youâre doing it for fun, or hoping to make a quick buck now and then, thatâs ok
but if youâre undercapitalized vs your expectations, it may be more prudent to stay away, or paper trade, really
for example, if you have $1 million, and you have decided you can commit $100,000 to your trading account (knowing that if you blow up, in the worst case scenario, you wonât be hurt, it wonât affect your lifestyle), you can probably make, what, 20-30% per year (just a guesstimate) on your trading account. if youâre good. 20-30K per year off trading. not bad, but nothing grand. still ok if you like what youâre doing
but, taking another extreme, if you have a total wealth of $100,000, and can commit, say 10K to trading, thereâs nothing wrong with that in itself. but do the math, and see if this suits you. well maybe it does, maybe it doesnât. but the plan should be balanced against expectations, at least I think so
the unpleasant conclusion from this is that trading, including day trading, may be more suitable for already wealthy/rich people
by the way, i think commodity trading is a slightly different story, although, for full disclosure, iâve never live-traded commodities . .. there are successful people in commodities, and maybe more of them, on average, than in equities. maybe. but itâs a very dangerous game, and you better really know what youâre doing . . . you need to get special forces training before you go into an actual combat situation . ..
Varima Garch
the phrase âthe odds are stacked against you over the long runâ is like saying âthere is no Santa Clausâ to an eight-year-old
we dream, we want to be free . . . i do too . . .
but i donât want to fall into the trap of âlearningâ and âfeeling thrilledâ while trading, just for the sake of it. markets are interesting, but i do want to make money. consistently
what i donât want to do is to simply transfer my savings to intermediaries, who have a vested interest in keeping a very high turnover. So they are energizing, galvanizing, stimulating, involving, revolving etc. the trading crowd
i want to take a dry approach to the situation, instead
if youâre doing it for fun, or hoping to make a quick buck now and then, thatâs ok
but if youâre undercapitalized vs your expectations, it may be more prudent to stay away, or paper trade, really
for example, if you have $1 million, and you have decided you can commit $100,000 to your trading account (knowing that if you blow up, in the worst case scenario, you wonât be hurt, it wonât affect your lifestyle), you can probably make, what, 20-30% per year (just a guesstimate) on your trading account. if youâre good. 20-30K per year off trading. not bad, but nothing grand. still ok if you like what youâre doing
but, taking another extreme, if you have a total wealth of $100,000, and can commit, say 10K to trading, thereâs nothing wrong with that in itself. but do the math, and see if this suits you. well maybe it does, maybe it doesnât. but the plan should be balanced against expectations, at least I think so
the unpleasant conclusion from this is that trading, including day trading, may be more suitable for already wealthy/rich people
by the way, i think commodity trading is a slightly different story, although, for full disclosure, iâve never live-traded commodities . .. there are successful people in commodities, and maybe more of them, on average, than in equities. maybe. but itâs a very dangerous game, and you better really know what youâre doing . . . you need to get special forces training before you go into an actual combat situation . ..
Varima Garch