Quote from michaelscott:
The market has been good to some people for the last 4 years. I highly emphasize the word *some*.
I will get to the point. The market is a proxy for the overall economy and job market. Usually when the market is doing well, the job market and economy are also booming as well.
From 2000 to 2002, there were many traders who were "shaken out" and left without jobs or capital. I hear far more disaster stories from that time period then anything else. While I believe a few traders made it out alive, the majority were shaken, stirred and scrambled. During that time period, many people in different industries were left unemployed.
Many people believe that when the market turns bad then they will simply pursue other careers. However, if they do not have any other business skills or education, how will they find a good job in a downtrending market similiar to the 2000-2002 period.
Now we are near a place in the market where interest rates are rising and the economy is called into question. A rate hike is in the cards. The last time the S&P 500 hit 1550, a similiar situation existed with Greenspan increasing rates and the economy looking quite questionable.
In those days of long ago, there existed a similiar mix of traders as today. Sitting in the rows at the prop firms, sitting at home computers and telling themselves that they can go on doing this forever. However, there were times even before then where a similiar situation existed. There were traders in the 20s in "bucket shops", traders in the 60s, etc. All of them thought and believed the good times would persist.
The nature of the market is one of musical chairs where you never know when the music will stop. Unfortunately, there are only a few chairs and a rather large crowd.
To think and believe that money can be made forever by trading at a prop firm or behind a personal computer in your home is foolish.
I believe someone should look at trading like any other boom such as housing. They should take advantage of the opportunity right now, but they should not have the attitude that this is a lasting career in which they can depend upon to pay bills and support a family.
I always laugh at how each time the market turns up there are always those who come out of the woodwork who think they can make a career out of this. Ultimately, there are those that lose their minds and their shirts.
My advice for those who might inquire is to get your MBA, get yourself a professional career and if you really hate dealing with people in an office then the problem is not with them, its with you. Part of the job of being a human being is effectively dealing with people no matter how strange they appear. If you cant deal with people in a business environment, then you must reflect on yourself and admit your shortcomings.
Dont trade your own money. Go to a place like NYC where you can get yourself a job and work your way to trading other people's money.
The vast majority of millionaires and billionaires made their cash through a business enterprise. They did not make it from behind a personal computer at their home or from sitting in the ghetto office of the prop firm.
The last few years have been good, but dont count on it lasting forever...
