Is it really possible?

This is a discussion on Is it really possible? within the General Trading Chat forums, part of the Reception category; Originally Posted by DaxDestroyer If I weren't trading for some time already and couldn't do math, I would be sure ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Mar 2, 2009, 12:51am   #22
 
donaldduke's Avatar
Joined Jan 2004
Quote:
Originally Posted by DaxDestroyer View Post
If I weren't trading for some time already and couldn't do math, I would be sure now that you will be topping the Forbes 500 soon
You cant keep on making 100% for long with a day trading system so not much chance of joining the billionaire league as a day trader.

At some point you starting to run out of liquidity and you get increased slippage.

Then it becomes a constant $ dollar return with diminishing % returns.

If you start with 1m and make 100% a year until you reach 10million a year it goes something like:

year0: 1m
year1: 2m (100%)
year2: 4m (100%)
year3: 8m (100%)
year4: 16m (100%)
year5: 26m (62%)
year6: 36m (38%)
year7: 46m (27%)
year8: 56m (22%)
year9: 66m (18%)
...

This is just an illustration, you might hit a wall way before 10 million or perhaps after, it depends on your system.
Liquidity issues is why a small trader can make 100% a year until they get quite rich, but a hedge fund with 100s of millions under management struggles to make 20% a year. They cannot trade the 'easy' systems we trade.
donaldduke is offline   Reply With Quote
Thanks! The following members like this post: trader_dante
Old Mar 2, 2009, 6:09am   #23
 
DaxDestroyer's Avatar
Joined Dec 2007
Quote:
Originally Posted by donaldduke View Post
You cant keep on making 100% for long with a day trading system so not much chance of joining the billionaire league as a day trader.

At some point you starting to run out of liquidity and you get increased slippage.

Then it becomes a constant $ dollar return with diminishing % returns.

If you start with 1m and make 100% a year until you reach 10million a year it goes something like:

year0: 1m
year1: 2m (100%)
year2: 4m (100%)
year3: 8m (100%)
year4: 16m (100%)
year5: 26m (62%)
year6: 36m (38%)
year7: 46m (27%)
year8: 56m (22%)
year9: 66m (18%)
...

This is just an illustration, you might hit a wall way before 10 million or perhaps after, it depends on your system.
Liquidity issues is why a small trader can make 100% a year until they get quite rich, but a hedge fund with 100s of millions under management struggles to make 20% a year. They cannot trade the 'easy' systems we trade.
Best of luck Sounds by far better, but still quite challenging. Maybe I am only not good enough
DaxDestroyer is offline   Reply With Quote
Old Mar 3, 2009, 3:04pm   #24
 
1 Posts
Joined Mar 2009
There are old traders, and bold traders, but no old, bold traders.
Almost all day traders either get wiped out, or they have to take the money and run.
If you want to consistently make money, it will be (by definition) over the long term. Which means that you must trade conservatively, and be fearful when others are greedy...but be greedy when others are fearful. So to answer your question, yes, you can be successful, but "consistent" and "day-trade" in the same sentence is a contradiction in terms.
Trueblue77 is offline   Reply With Quote
Old Mar 3, 2009, 3:40pm   #25
 
Dinos's Avatar
Joined Nov 2003
Quote:
Originally Posted by Trueblue77 View Post
There are old traders, and bold traders, but no old, bold traders.
Almost all day traders either get wiped out, or they have to take the money and run.
If you want to consistently make money, it will be (by definition) over the long term. Which means that you must trade conservatively, and be fearful when others are greedy...but be greedy when others are fearful. So to answer your question, yes, you can be successful, but "consistent" and "day-trade" in the same sentence is a contradiction in terms.
Hmmmm, we keep getting asked this question under a number of guises, YES, it is possible to make a living living out of day trading, I have been day trading 14 years, 8 full time. I'm neither old or bold or greedy, but have a set plan which sees me trades a maximum of 4 trades a day. Why do people think you cannot make a living out of day trading, perhaps they have blown their accounts or simply cannot day trade. With discipline, a concise, clear set of rules which enable entry, exit and stop loss, its not very difficult to make a comfortable living from day trading. I "work" from 7.30am to 12.30pm each day and then finish trading and am free to do as I wish. If you want to be greedy and get every single point available, then greed will probably get you in the end, however, to target a modest pip count for each day leveraged sensibly with clear cut stop and limit orders, day trading is easy, before I start the day, I already know what my maximum potential loss can be and conversely what my maximum profit can be. Add to that discipline, together with a clearly defined trading plan, which has being rigourously backed tested and statiscally assessed to form a trading plan, you should win. Surely you wouldn't trade without a plan would you??, if your plan says, your set up is wrong, again, you wouldn't trade it. If the results say you have a system that works, your trade per say and record the details of every trade taken, the entry, exit and stop criteria should be match your trading plan on every trade, if not, your not trading as you should, I need to know the outcome of every trade I place so I can record the trade, honestly good or bad and form statistical database of my trading. I can tweak/change or adapt any part of the plan as the statistics identify to ensure the outcome is in my favour. Boringly, say you run a 75% success rate by sticking 100% to a plan, simply maths says you are running a 3:1 winning ratio, conversely if the fugure is the other way around, your system clearly isn't working and you will become one of the statistics if you don't adapt. IMHO, KISS, trading is easy, its the trader who makes it difficult, makes your decisions on trading by yourself, unfortunately I have being around long enough to see traders from these boards come on with yet another "fantastic" set up, only to bring another to the boards a few months later, makes your own decisions, make your own plan, trade your own decisions and don't let anyone tell you you are doing it wrong, you will know yourself by the results whether youe are doing it right or wrong.

I rarely visit these boards these days, I have no need, I'm comfortable with my life as a trader, and I would go as far and say, these forums can be bad for you as a trader, as you perhaps doubt yourself when you read of others "success", be honest with yourself, be disciplined, be patience and if your set up is correct, you to can stop visiting these sites, makes money and a living and indulge your spare time in something away from trading.....Just my thoughts, off to do something more interesting now, non "work" related.
Dinos is offline   Reply With Quote
Thanks! The following members like this post: Paul71 , luckyd1976
Old Mar 3, 2009, 3:44pm   #26
 
DaxDestroyer's Avatar
Joined Dec 2007
Quote:
Originally Posted by Trueblue77 View Post
There are old traders, and bold traders, but no old, bold traders.
Almost all day traders either get wiped out, or they have to take the money and run.
If you want to consistently make money, it will be (by definition) over the long term. Which means that you must trade conservatively, and be fearful when others are greedy...but be greedy when others are fearful. So to answer your question, yes, you can be successful, but "consistent" and "day-trade" in the same sentence is a contradiction in terms.
Thanks for letting us know
DaxDestroyer is offline   Reply With Quote
Old Apr 10, 2009, 5:05am   #27
Joined Mar 2009
yes, if you can visualize it. Everybody knocks daytrading, but the truth is most people don't have the knowledge nor the cajunas to do it. What do you think the guys in the nymex pit do all day. trade in and out of contracts somedays there up huge some days they lose. Eric Boling was in the pits and I can promise you he is a millionaire.
bigtymer292929 is offline Newsletter / tip sheet / trading advice vendor   Reply With Quote
Old Apr 15, 2009, 1:09pm   #28
Joined Nov 2006
Quote:
Originally Posted by Calinor View Post
I'm wondering if it is actually possible to consistently make good money Day-trading.
Possibly.

The question should read: "I'm wondering if it is actually possible for me to consistently make good money Day-trading."

I expect you can answer that yourself.

Is it possible to become a World champion F1 driver in 23 years?
raysor is offline Commercial web site   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)