Full time trading does it really pay

This is a discussion on Full time trading does it really pay within the General Trading Chat forums, part of the Reception category; Originally Posted by new_trader That’s ironic Split. Most have aspirations of trading full-time to get away from hard work. I ...

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Old Jan 16, 2011, 4:06pm   #76
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Re: Full time trading does it really pay

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Originally Posted by new_trader View Post
That’s ironic Split. Most have aspirations of trading full-time to get away from hard work. I suppose if you’re trading for breadcrumbs it will seem like hard work and that is why most continue with part-time trading until they are certain their living will be much more comfortable making the transition to full time.

It may be just me, but I am always sceptical of the people who call themselves a ‘full time’ trader (as if it confers some extra credibility in what they say about trading) when they are married and use spread betting because of the tax advantages. They are either too embarrassed or too arrogant to admit that they have a very supportive (emotionally and financially) spouse, wife, partner, ‘other’ as well as the tax advantages that you get with the dual income. But when asked about it, those people get so incensed by the question and refuse to answer that it will always be a mystery....a forbidden question...But I just can't imagine anyone coming home from work and saying "Honey, Kids, it's beans on toast for the next few years because I want to be a full time spred betta!"

I say that so called ‘full time’ traders have absolutely no idea how much extra time and effort “part time” traders are putting in to realise their own dreams and aspirations about trading and are therefore completely unqualified to make any comments about it.

To continue with the sceptical theme - A number of other people have also mentioned that they lost their entire trading pot 3, 4, X times before becoming profitable. I always wonder where they got their 2nd, 3rd, X pot to start again.
There you go!

I hope what you say will get inside the heads of the wannabe fulltime traders. It's pie in the sky and you have to be tall and have a long reach to get it!
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Old Jan 16, 2011, 4:31pm   #77
 
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Re: Full time trading does it really pay

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Originally Posted by brettus View Post
6.1% of capital invested in the stock.
I trade index options credit spreads. Capital at risk is the difference in strike prices making up the spread less the credit received.
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Old Jan 16, 2011, 4:34pm   #78
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Re: Full time trading does it really pay

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I trade index options credit spreads. Capital at risk is the difference in strike prices making up the spread less the credit received.
Excuse me for being dumb, but if you have 100k total capital, you made 6.1k? from that credit spread?
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Old Jan 16, 2011, 4:44pm   #79
 
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Re: Full time trading does it really pay

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Excuse me for being dumb, but if you have 100k total capital, you made 6.1k? from that credit spread?
Without delving deeply into money management, here are a few points. At the moment I have 13 credit spreads open. Twelve of them are paired up to form Iron Condors. This is important because the second spread added to form the Iron Condor does not place any additional capital at risk. Last, I am never "all in." I was hovering around 10% cash in this account, but am moving it toward 20%. This arrangement permitted me to earn an average of 10.5% month on month return in this account.
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Old Jan 16, 2011, 5:42pm   #80
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Re: Full time trading does it really pay

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Without delving deeply into money management, here are a few points. At the moment I have 13 credit spreads open. Twelve of them are paired up to form Iron Condors. This is important because the second spread added to form the Iron Condor does not place any additional capital at risk. Last, I am never "all in." I was hovering around 10% cash in this account, but am moving it toward 20%. This arrangement permitted me to earn an average of 10.5% month on month return in this account.
Is it correct to then say you have up to 80% of your entire trading pot quarantined by the broker?
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Old Jan 16, 2011, 6:08pm   #81
 
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Re: Full time trading does it really pay

80%?????????????????????????
You should be risking a lot to have that percentage quarantined
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Old Jan 16, 2011, 6:24pm   #82
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Re: Full time trading does it really pay

I'll tell you something that doesn't pay.

Crime doesn't pay.
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Old Jan 16, 2011, 6:24pm   #83
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Re: Full time trading does it really pay

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Excuse me for being dumb, but if you have 100k total capital, you made 6.1k? from that credit spread?
No it doesn't but don't bother trying to get a straight answer out of him on this issue. He really doesn't like to talk about it.

Just accept that he makes thousands of per cent per month, and don't try to find out what that is a percentage of.
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Old Jan 16, 2011, 6:34pm   #84
 
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Re: Full time trading does it really pay

Pazienza i preffer 100000000000000000000000000000% of 1.00 instead 1% of 1000000000000000000000000000.00, is simple, if you know how to catch pips the rest depends on you, but if you dont know how to do it and you have to have the mouse on your hand it will only be a matter of time but you´ll loose your 1%.
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Old Jan 16, 2011, 6:37pm   #85
 
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Re: Full time trading does it really pay

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Is it correct to then say you have up to 80% of your entire trading pot quarantined by the broker?
80% of this account. Not of my trading pot. Normally I would not mention the latter, however I was challenged on this previously.
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Old Jan 16, 2011, 6:39pm   #86
 
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Re: Full time trading does it really pay

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Originally Posted by fayalac View Post
80%?????????????????????????
You should be risking a lot to have that percentage quarantined
How are you defining risk? Maximum possible loss? Where the stop is set? Other?
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Old Jan 16, 2011, 6:40pm   #87
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Re: Full time trading does it really pay

Right, I thought you mentioned you were trading 20% of your pot on this strategy, is that right or did I get my wires crossed?
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Old Jan 16, 2011, 6:45pm   #88
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Re: Full time trading does it really pay

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Right, I thought you mentioned you were trading 20% of your pot on this strategy, is that right or did I get my wires crossed?
LOL Seriously, don't bother, this has been done to death. Howie's method of measuring and reporting his returns is just, ahem, unusual.
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Old Jan 16, 2011, 6:45pm   #89
 
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Re: Full time trading does it really pay

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Right, I thought you mentioned you were trading 20% of your pot on this strategy, is that right or did I get my wires crossed?
You got it right. Since this account grows faster than the others, it now represents about 25% of the entire pot. I may rebalanced given this account has higher risk than the others.
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Old Jan 16, 2011, 6:47pm   #90
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Re: Full time trading does it really pay

Ok, so all we need to do is divide your returns by 4 or 5 to convert it to a form we understand, right?
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