Trading For A Living

This is a discussion on Trading For A Living within the Home Trader forums, part of the Trading Career category; mm.. 'trading for a living..', conjures up all sorts of lovely thoughts/emotions. And you know the game of trading, it ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Jan 5, 2003, 1:01am   #1
Joined Dec 2002
Trading For A Living

mm.. 'trading for a living..', conjures up all sorts of lovely thoughts/emotions. And you know the game of trading, it is a beautiful game. They reckon Chess is the ultimate mind game... they have no idea!

Trading challenges us in so many different ways.. more often than not highlighting our shortcomings, our lack of discipline, our propensity toward greed, fear and panic. At the end of a trading day we feel that we know ourselves that little bit more than we did from the day before.

But all that aside, how many of us have mastered the game to a level which enables us to extract enough profit to actually earn a living from it??

I posted a thread not so long ago, "fifty percenters" and interestingly got no response. So rather than have traders hang their hat on their trading record, would anyone out there care to comment on the profit levels that they think must be maintained to secure a living from trading.

Regards
Kevyn T
kevynt is offline   Reply With Quote
Old Jan 5, 2003, 8:52am   #2
Naz
 
Naz's Avatar
Joined Sep 2001
$500/day is a realistic target to go for.

Here's my reasoning.First of all you need a market that moves and we all know the best for that is the Nasdaq.Next you need the best direct access system there is and that is on the same market.

Remember this isnt a hoby at this stage its a business.If you aren't using and trading the best you are seriously going to damage your profit levels.

I'm a Nasdaq scalper by heart but if you trade 100 times a day at these low prices,i doubt you'll make a living.

IMHO,use 1000 share size and wait and watch like a lion at the watering hole.Dont jump on the animal on the other side but wait for the wounded animal to come and drink right infront of you and then get in for the kill.A 50c run with using NL2 and 1000 share size that's your $500 for the day.Pack up and go and enjoy life.

With a NL2 you can close the gap in the first 1/2 hour bank $500 and finish for the day.But have the best trading system you can get or you can just whistle in the wind.

Below is a gap play example on the open from last week.Anyone that trades the Nasdaq knows that these happen time and time again.
Attached Thumbnails
msftp.gif  

Last edited by Naz; Jan 5, 2003 at 9:25am.
Naz is offline Coach/Trainer   Reply With Quote
Old Jan 5, 2003, 10:16am   #3
 
mmillar's Avatar
Joined Nov 2002
Surely, how much you think you need to make from trading is just a lifestyle choice. If you live the life of a millionaire you will need a lot, the life of a peasant, a little.

I (and a few others I know) aim for 10-20 points per day. At £10 per point this works out at £100-200 per day, £500-£1000 per week, £2000-£4000 per month. For me, this is a comfortable living. With spreadbetting this is (in theory, anyway) tax free so works out at a respectable salary.

The problem is that if I start the month with a few bad days I may be 100-200 points down and then feel under psychological pressure because I'm '2 weeks behind' and have to catch up. That's when things go wrong and just reinforces to me that trading is purely about psychology.

Cheers
mmillar is offline   Reply With Quote
Old Jan 5, 2003, 11:38am   #4
 
FTSE Beater's Avatar
Joined Feb 2002
Hi kevynt
Quote:
comment on the profit levels that they think must be maintained to secure a living from trading.
For me it is only £400 a month. Mainly because I live at home, and for at least the next year, trading is my life.

As mmiller says it is all relative to your personal circumstance

HTH
FTSE Beater is offline   Reply With Quote
Old Jan 5, 2003, 12:56pm   #5
 
JonnyT's Avatar
Joined Dec 2001
$500 to $1000 dollars per day trading ES and/or NQ

Like Naz stated, there are techniques to trade the opening (i.e trading the first change of direction can normally yield 5+ points. If it goes against you immediatly close and go the opposite way. About 80% hit rate is achievable and you only spend an hour per day.

JonnyT
__________________
Trading Mentor
JonnyT is offline   Reply With Quote
Old Jan 5, 2003, 1:05pm   #6
 
Mr. Charts's Avatar
Joined Sep 2001
>kevynt
I trade for a living.
I can answer your question with details about average income expectations over a period of time as your experience grows etc, capital base needed, probable percentage returns and so on. These are based on the results of people I've trained and can be verified.
I am not "touting for coaching business" - you are in Australia anyway!
If you want to private email me, I'll provide you with the info.
I am not prepared to put it up here as last time I was repeatedly accused of boasting, sneered at and almost called a liar by one individual and I'm not prepared to read that sort of nonsense again.
__________________
Mr. Charts
Full time US Share Trader
Follow me on Twitter twitter.com/MrChartsJoyson

Contributor to T2W's Trading FAQ Book
http://www.trade2win.com/books/trading-faqs

T2W interview

http://www.trade2win.com/knowledge/a...ichard-joyson/
Mr. Charts is offline Coach/Trainer   Reply With Quote
Old Jan 5, 2003, 6:42pm   #7
 
TraderPattern's Avatar
Joined Oct 2001
On most of my days I make no more than $1000 (i.e. anything from $300 to $1000). But I have a handful of days a month (on average about 5 such days) where I make several thousand dollars ($2000 to $10,000), which make up for the boring days... to get to my level is more a function of my long experience trading than trading capital maintained in my account... I don't need to keep my account funded very highly (relative to what I could easily fund it to) to achieve such numbers...

I don't have any time or inclination to mentor people (I like to keep my weekends to myself, and I am too busy making money during the week to justify giving live lessons)... but if you want insights into how I go about trading, I would recommend any interested folks look up Naz' course which is on the T2W homepage... he has made a conscious lifestyle choice to trade part-time and teach part-time... Naz and I have basically got the same style, trading off Nasdaq Level 2, which is much more reliable (for me) than using technicals...
__________________
Don't personalise the market

Last edited by TraderPattern; Jan 5, 2003 at 7:42pm.
TraderPattern is offline   Reply With Quote
Old Jan 5, 2003, 7:45pm   #8
 
Skimbleshanks's Avatar
Joined Nov 2000
Perhaps we should turn the question around to how much you MUST make per day on average.

The UK national average salary is £19,400 pa, so assuming you do not work for bank holidays and 4 weeks holiday, and also assuming operating costs (data feed, software, Internet) of £1,000 pa, you would NEED to make £88 ($150) per day gross just to keep up with the national average.

An average worker in the software industry earns £35,300 pa, and assuming the same as above, that works out to be £160 ($252) per day gross.

As you can see from the above posts, it would seem that ideally you need to trade US markets to make that sort of money.
Skimbleshanks is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Can you really make a living from trading? kenotoriello First Steps 25 Aug 23, 2012 3:23pm
Trading for a Living? Sharky Home Trader 45 Oct 24, 2011 10:41am
Capitalization and Trading for a Living rizwanuk Home Trader 40 Nov 14, 2007 6:04am
Article: Trading for a Living T2W Bot Educational Resources 7 Sep 15, 2006 10:26am
Trading for a Living Nadine Home Trader 2 Sep 8, 2004 3:19pm

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