Robert Morse
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galvinlee888,
What is your strategy? Do you trade full time?
Bob
What is your strategy? Do you trade full time?
Bob
What approach should one take when starting day trading?
- Thread starter JonathanAV95
- Start date
Robert Morse
Sponsor
Would you consider yourself more of an investor than an active trader?
Active Trader = day trader ? Then My answer is i am not active trader
Would you consider Soro or Carl the active trader ?
Robert Morse
Sponsor
To use the example of billionaires that made millions actively trading to get there, is not a great example. Both had teams of traders back in the day.
The reason why I ask is simple. Most investors are long biased. Most investors make money over time but run into a few issues. They never know what level of investment they should be in, so often get in and out at the wrong time. They might or might not be good stock or ETF pickers, but I find that hard to do over time too. For those that are all in 100% of the time, well that has worked well, unless you need your funds during a drawdown. My father is a long term investor and is now 90. He just sold some annuities and we calculated over 25 years a 6.25% return. He is very happy with that, but what if he turned 90 in 2008 or 2009 and had to sell then? He also made much of his money from active trading when younger.
And, unless you have a large account, the 6% or so that most investors are able to achieve over time, does not pay the bills. To make a living from an account of say $100,000, you must take on risk or actively look for alpha. It is not easy, but it is the only way to make a living with that AUM.
The reason why I ask is simple. Most investors are long biased. Most investors make money over time but run into a few issues. They never know what level of investment they should be in, so often get in and out at the wrong time. They might or might not be good stock or ETF pickers, but I find that hard to do over time too. For those that are all in 100% of the time, well that has worked well, unless you need your funds during a drawdown. My father is a long term investor and is now 90. He just sold some annuities and we calculated over 25 years a 6.25% return. He is very happy with that, but what if he turned 90 in 2008 or 2009 and had to sell then? He also made much of his money from active trading when younger.
And, unless you have a large account, the 6% or so that most investors are able to achieve over time, does not pay the bills. To make a living from an account of say $100,000, you must take on risk or actively look for alpha. It is not easy, but it is the only way to make a living with that AUM.
I make a comfort living from the investment/trading.
In real world, you can't quit your day job if your account is less than a million, constantly look for alpha is double edge as you are increasing the chance to get blow up in the same time while you are chasing the extra few % return.
Alot of the really great, rare, retail trading success stories all usually started with only a tiny fraction of that amount
It all depends on your abilities/skills and trading system.
If you have a large starting initial account, you may become or get or stay 'comfortable' and be content to settle for mediocre investment-level returns.
If your account is smaller, you will be hungrier and strategize better for trading-level returns.
True. But I was being generous, I thought if I put 100%, it would only be inviting much willy-waving from people who claim to have been long term consistently successful.
Alot of the really great, rare, retail trading success stories all usually started with only a tiny fraction of that amount
It all depends on your abilities/skills and trading system.
There is no different between a casino and day trading.
From time to time you will have a few traders that make a good money in trading(no different than lucky gamblers that make millions in the casino). The broker/educational seller/signal seller/bucket shops/trading site owner love to make a good marketing from this type of "rare" success story. Day trading is the best source of income to them this day.
Most of the traders that claim to success are indeed luck than skill (no different than the gambler in casino). For example, if you are kind of range (revert to mean) trader, you will make a killing in index for the past 2-3 months but you have a big loss months if you are trend following / momentum trader. In long term, both camps (revert to mean vs momentum) are losers when you include commission + slippage
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True. But I was being generous, I thought if I put 100%, it would only be inviting much willy-waving from people who claim to have been long term consistently successful.
The math in day trading is not make sense for any positive edge after you include commission + slippage.
This is no different that you can't find any long term winner in roulette, even casino only has small edge in this game(< 3%).