Rate of improvement slows, due to the law of marginal utility. But profit is limited by liquidity, at least for the high rollers. We are in an easy money market, and the more money one has, the easier it is to make, although you are correct as far as exponential functions go.
Take time to become successful traders?
- Thread starter johnmmf
- Start date
Ideally
1. You hook up with a winning trader on a personal level and he advises you.
Paying serrious money to gurus-for-hire rarely works out. Most are hustlers who currently have no worthwhile edge.
Realize there are so many other factors than just having a magic strategy or even a real edge to exploit:
The right broker and software may be critical; enough capital; etc
2. Posting questions on Elitetrader is good but you must be smart enough to evaluate the poster and the answer.
3. Often Edges Go Away. What worked years ago may not work now. Markets become more efficient and regulations (like the old SOES Bandits) that handed out money close.
4. You could apply at a real trading firm like Sesqhanna International. Traders are taught from scratch and trade the firm's money. Incredibly large many billion firm founded by former Vegas poker players who are now billionaires.
5. You could put up money and trade at a prop firm. Most people doing even this lose as winning traders stick together and training is often done by busted losing traders.
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The Big Picture
1. Most people will never find a big winning trader to take them under their wing. However, networking is a skill and maybe you can work for one.
2. Well.. I hope you are good at discerning what is true and what is not with posters on ET.
3. Most people i knew 15 years ago no longer win.
Daytrading is getting harder. Technologies and knowledge advance quicker.
4. Applying at firms like Sesqhanna is stellar idea for many, but they turn down most applicants.
Are you a master coder, top mathematician, world class games player?.... well many firms will want you.
BONUS TIP: If you are a world class coding mathematician scientist apply at Renaissance Technologies and if they accept you, become wealthy.
5. Your best chance at a prop firm would be if you or a friend knew a truly big winning trader there who would let you be his assistant. The training at most firms is a joke.
Btw.. most prop firms from 15 years ago are out of business. Trading is highly competitive.
If most prop firms could stamp out winners like cupcakes they would not have folded like dominoes.
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Very few people sitting alone at home clicking buttons on their retail account make it.
Try to get involved with winners.
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Agree! Initially if someone wants to become a profitable trader with low amount to build up his confidence, Then what kind of steps he must take to gain the profit?
I seems you are a new trader, to be honest with you, profitable trading is tough but success is possible. If you want to build your confidence, i don't think you need to do that with a live account. Don't deposit yet because you will likely loss it. you can start with a demo account. just familiarize yourself with the market first ( Risk Free).
I think it much tougher now to learn than when you call the floor who relayed into the pits. Way way way too much information now, you can go through your account in a few weeks cause it is so easy to do, people buying the fastest computers does not make you a better trader.
Actually, you have to put in the time of 10,000 to 20,000 hours of watching the screen, and when you not watching, you are back testing ideas using like Ninja Trader or other trading software's and you know how to program. Chances of getting a trader to teach you getting tougher and tougher, as they know even with their help-it be like 2 years plus to focus price action and how it being tested.
Actually, you have to put in the time of 10,000 to 20,000 hours of watching the screen, and when you not watching, you are back testing ideas using like Ninja Trader or other trading software's and you know how to program. Chances of getting a trader to teach you getting tougher and tougher, as they know even with their help-it be like 2 years plus to focus price action and how it being tested.
Johnmmf...please consider the following. If I said "I believe that anyone can be successful in life, if they are willing to work for it". My next question would be "why can't or don't most people do it then?". I believe you are right..."the will to work for it" is crucial, but I think there's more to it than effort/will power. Some will say most people aren't willing to work hard enough for it...I say that's true, but I still think there's more to it. It's also possible that what I consider max. effort isn't the same as what someone else considers maximum effort. Good Luck!
Overall, trading is a zero-sum game (specifically equity's zero sum with respect to index average) Since many traders pay huge amount of commission and tax lifetime, the trading cannot be zero sum. If the game is free with no tax, then probably half may be a winner.
For example if one pay 40K of comm+tax every year, for example, then he should pay total of 2000K for 50 years(from 30 to 80), then who could be a winner?
I mean many winner tends to trade NOT often.
Thank you!Johnmmf...please consider the following. If I said "I believe that anyone can be successful in life, if they are willing to work for it". My next question would be "why can't or don't most people do it then?". I believe you are right..."the will to work for it" is crucial, but I think there's more to it than effort/will power. Some will say most people aren't willing to work hard enough for it...I say that's true, but I still think there's more to it. It's also possible that what I consider max. effort isn't the same as what someone else considers maximum effort. Good Luck!
Agree! i also prefer to go with demo account, how much time it takes to build up that much confidence for being familiarize with the market according to you? yes,its depend on me only,that how i am going. still it wold be great help,if you share your some beneficial point of views according to you.
depends on how often you monitor the market,it takes time to learn and become profitable. but a minimum of one year.