On overly competitive markets - in "Dark Pools" there is a story how Thomas Peterffy, who some consider a father of electronic trader but widely known as founder of Interactive Brokers, pulled out of ISLAND in late 90-ies. When ISLAND contacted him to see why, his answer was - because I don't make money on ISLAND. Later they started calling it - there were too many sharks in that tank.
What is the threshold to be considered a successful day trader?
- Thread starter Bugsy
- Start date
I believe that success is determined by comparing what the average person earns.
If it is much higher then it is successful.
If it is much higher then it is successful.
The question to ask would be did you achieve the goals you set for yourself? If you managed to do that then you succeeded.
If your goal is to only lose half your money and you break even that would make you a success in your eyes. And really on an anonymous internet forum who knows or cares?
If your goal is to only lose half your money and you break even that would make you a success in your eyes. And really on an anonymous internet forum who knows or cares?
Andrea Wylan
Sponsor
I agree with this definition of success. When you can trust and follow your plan. Therefore, you trust yourself, and the money follows. Then, as you are able to scale up without negative psychological consequences, you know you are reaching success. Whether you make a lot of money or not at that point may depend on how successful a strategy you have (assuming you have the mindset to follow the strategy.)
So, it is more about being able to follow the plan than how much money you make--in my mind.
is that a plan to have win rate of better than 51% with a set dollar win of better than x%?
what would you say a consistant/long term win rate should be for the average retail trader to make them a "successful day trader".... 51% or a higher number?
as always a positive account balance should go hand in hand with the 'more wins than losses'.
is "a plan" the same as 'self discipline' or 'knowledge/skill'?
Andrea Wylan
Sponsor
Good questions. It all depends. If you win 50% and you have 1 to 3 (risk to reward) consistently or greater you will make money. If you have a 1/1 Risk to reward, then you better win 70 or 80%. It is all an equation to work out.
To me you are successful when you can implement the plan and achieve these numbers and do it consistently. Which means you have mastered your mind. Because even if you do 9 good trades out 10 and the last one blows up, you can destroy your account. So it comes down to the winning strategy, the risk management and the ability to discipline yourself so you can trust yourself to follow the plan.
(You start with the Plan. The discipline is the ability to follow it.)
To me you are successful when you can implement the plan and achieve these numbers and do it consistently. Which means you have mastered your mind. Because even if you do 9 good trades out 10 and the last one blows up, you can destroy your account. So it comes down to the winning strategy, the risk management and the ability to discipline yourself so you can trust yourself to follow the plan.
(You start with the Plan. The discipline is the ability to follow it.)
@Andrea Wylan, thanks for responding.
when you say "start with a plan", many starting out or even long term traders or investors, I'm guessing many do not have or know what "the plan" is!
speaking for myself as a 73 year old senior that has been investing & trading for a few decades (one that considers themself as someone that is 'not as smart as a 5th grader'), KISS principle trading/investing is what works for me, that getting a consistent in any market/any year - minimum 51% win rate with a not less than 12% net return a year on ROCE.
going forward, if I miss either of these numbers I shall stop trading the maket.
done right for those that utilize it - hedging & leverage can be beneficial.
when you say "start with a plan", many starting out or even long term traders or investors, I'm guessing many do not have or know what "the plan" is!
speaking for myself as a 73 year old senior that has been investing & trading for a few decades (one that considers themself as someone that is 'not as smart as a 5th grader'), KISS principle trading/investing is what works for me, that getting a consistent in any market/any year - minimum 51% win rate with a not less than 12% net return a year on ROCE.
going forward, if I miss either of these numbers I shall stop trading the maket.
done right for those that utilize it - hedging & leverage can be beneficial.
Last edited:
Andrea Wylan
Sponsor
Sounds like you have a plan and you follow it!! 