How much do futures traders make?

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wind

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Hi, I'm guessing this question has been posted before, but I cant seem to find it in the forum. If it has then can someone please point in the direction of that thread.

I'm considering a career as a futures trader. I know the pay at first is pretty dismal during a training contract. However, I'm unsure what futures traders make after a year or so. I know part of it depends on how good you are, but do most people earn a decent wage? and a rough idea of how much would be great. thanks
 
If you are a real futures trader you do not earn a wage .... you trade for yourself.

Anything from -10k per day to +10k per day should be possible.
 
wind said:
I'm considering a career as a futures trader. I know the pay at first is pretty dismal during a training contract. However, I'm unsure what futures traders make after a year or so. I know part of it depends on how good you are, but do most people earn a decent wage? and a rough idea of how much would be great. thanks
Click to expand...
Hi Wind,
I don't know why, but your name reminds me of the time many years ago when my wife and I went to the pictures to see 'Dances with Wolves' with Kevin Costner. The Indian chief in the film had a name along the lines of 'Wind in his Hair'. As we were leaving the cinema, my wife commented (in an unnecessarily loud voice I thought) that had I been cast in the film, I'd have the name "Wind in his Bottom'. The somewhat sombre and reflective mood of the departing audience soon changed as laughter erupted all around us. Needless to say, I was not so amused. None of which has anything to do with your question. On that note, if you go to 'Discussion Boards' (drop down menu at the top of the page) and then go to the section entitled 'Trading for a Living', there are several forums in there that will be of interest.
Enjoy!
Tim.
 
the majority of traders dont make much money (far more than you think, i was shocked when i started trading), a small group make an average income but a smaller group can make 200-300k +. Unfortunately theres no gaurantee what group you will fall into, most traders that have been in "the game" for a few years have had a golden year or two and a few years of making nothing. Going into the industry is a trade in itself, you have to be honest and ask yourself if you think you have an edge, and know when to be aggressive or walk away. This is just my opinion from the self employed "local". Not sure how banks/institutions work because i havent worked in one.
 
As general rule market for :
Banks
60-100 base 5-7% book
Funds
60-130 base 10-15% book
 
so would it be safe to assume that if working for a small prop futures trading firm, that I could be earning over the £50k mark in a couple of years? I've read on these forums that some traders make next to nothing, and some make huge amounts. I just wanted to get an idea of what the vast majority of prop firm day traders earn, and whether most do make a decent wage? i've got a feeling they make substantially less than those in banks do. thanks for all the info so far!
 
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tommog said:
the majority of traders dont make much money (far more than you think, i was shocked when i started trading) .
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tommog, you mind giving a rough figure for when you say they dont make much?? cheers
 
its really simple
if you are good you make a very good living
if you are not you wont make a penny
try and think of trading as a business
if you find a niche you will do very well
if you are mediocre then expect the same results
and if you run a business on hope then you are doomed
 
TWI said:
we are all doomed ultimately
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hahahaha we sure are
and if this is the case why are so many scared of trading
when we all know what will eventually happen
 
tommog, you mind giving a rough figure for when you say they dont make much?? cheers
Click to expand...

well, when i say dont make much i meant they just about cover their desk fees (the rent you pay each month for your desk). An average propriety trader needs to make about £2000 a month to cover their desk, and you keep a split of your profits on top of that
 
wind said:
tommog, you mind giving a rough figure for when you say they dont make much?? cheers
Click to expand...

if you are trading with the firms capital, and you turn out to be a bad trader, your maximum downside is that you will make zero for as long as you give it a go.

the ultimate answer to "how much can you make" is down to you. Do you have the sticking power, dogged determination and persistence to stick at it through the inevitable drawdowns? could you survive for a year or more on zero income while you develop your edge, recover early losses and eke your way towards positive balance profitability?

if the answer is no to these, then dont even bother to start in pro trading.

If you answer yes, but you suck at trading, you still wont earn anything. BUT if you turn out to be a good trader, then maybe you could join the six or seven figure income club.

With trading the reward opportunity for fully backed prop futures trading is very high. Whether you can attain that depends on YOU however.
 
thanks for all the info. i've been considering my career options, I've decided to aim working for a prop firm rather than a bank. I feel the opportunities are greater to move up the company if it is smaller and you can get to know the top guys easier.
 
Good question. There is an edge somewhere in that question.
andycan said:
hahahaha we sure are
and if this is the case why are so many scared of trading
when we all know what will eventually happen
Click to expand...
 
I think it depends on several things,

First the skills of the trader and how many pips he/she can earn each week, month, etc.
Then the size of the account/s and the risk used according to its size
Or you can work for a bank or prop firm with a salary and a bonus which I dont have any idea of how much is it, but if you are good and have a reasonable account in order to make it grow, you might not need to work for anyone but yourself.

One example could be if you have a 20k account using a 4% risk with 2 lots and you are able to make it grow constantly in 30% per month then you would be earning 6k in average per month, basicly depends on yourself, your skills, your size of account, etc.
 
I believe I can earn millions to zero..its depend on my luck and capital lol hehe
 
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