Full time trading- how much is ££ required?

T

tonster01

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Hi all

Just a quick question for any of you have went out and traded full time here in London...

What is the minimum you think is required to be capitalised with in order to do so?

Its been suggested that 150K would be min needed if you were to assume gains of 20% per annum (as a target I know....may not always be achievable)

Has anyone else much experience of this...without using excessive leverage and risk?

Comments appreciated and yes I know I should take into account cost of living in London etc and all other costs

Thanks

T
 
20% of 150k is 30k. Doesn't mean you need 150k to make 30k.

With all the leverage available, if you truly believe in your trades and go in big when the stars align, you could honestly make 30k in a year with 1000 starting.
 
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You mean from an arcade or sitting at home? Trading what? What are your expenses? You won't get much useful help without giving more detail.
 
Masquerade said:
You mean from an arcade or sitting at home? Trading what? What are your expenses? You won't get much useful help without giving more detail.
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Trading from home/or rented or shared office

Trading outright US and UK equities using little or no leverage and eod day data.

Expenses of around £1K monthly I would say is manageable until up and running properly.

Thanks for your replies.

T
 
I know someone who saved up for a year, had enough to pay all their bills for 12 months and started trading full time from home with £3000, risking £50-£100 per trade, hes doing very well. He day trades by the way on the 15m timeframe on currencys, also on the 4H timeframe.
 
People talk about unrealistic returns, compounding won't go on etc and that is true of course. But if you are actively trading a reasonable-sized personal account (by which I mean anything up to hundreds of thousands) 20% per annum is a very modest return. Excellent for a fund manager who is having to shift tens of millions about, but in my opinion very modest for a normal retail trader.

The question is impossible to answer because people's styles are so different, but personally I wouldn't try to go pro with much less than £50,000 to actually trade with. Then at least a year's (but preferably two or three years') living expenses, hardware etc up to date, ideally any big expenses that are likely to come up in the next 24 months already taken care of. So you shouldn't have to shell out on a new set up, new car, get that leaky roof fixed, pay for your bypass surgery etc.

In other words, don't think what is the minimum required. Go for minimising the pressure and allow ample margin.
 
Jimmy Lulz said:
People talk about unrealistic returns, compounding won't go on etc and that is true of course. But if you are actively trading a reasonable-sized personal account (by which I mean anything up to hundreds of thousands) 20% per annum is a very modest return. Excellent for a fund manager who is having to shift tens of millions about, but in my opinion very modest for a normal retail trader.

The question is impossible to answer because people's styles are so different, but personally I wouldn't try to go pro with much less than £50,000 to actually trade with. Then at least a year's (but preferably two or three years') living expenses, hardware etc up to date, ideally any big expenses that are likely to come up in the next 24 months already taken care of. So you shouldn't have to shell out on a new set up, new car, get that leaky roof fixed, pay for your bypass surgery etc.

In other words, don't think what is the minimum required. Go for minimising the pressure and allow ample margin.
Click to expand...

Thanks Jimmy

Yes this is what I was thinking...£50k would be more than enough and I would have enough to live comfortably also

I think even getting out of London would add additional longevity

I would be happy with 20% a year as a starting point tbh

I have had 66% as my highest rate of return on a trade which I held for quite a while

I guess time will tell but thank you all for the advice and input

Much appreciated!
 
Also, how much leverage were you using on the initial pot?

My leverage tends to be quite small anymore ...most 2 or 3:1 will be max as opposed to 100 to 1 or anything near that level
 
tonster01 said:
Also, how much leverage were you using on the initial pot?

My leverage tends to be quite small anymore ...most 2 or 3:1 will be max as opposed to 100 to 1 or anything near that level
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I joined Instaforex 1:1000 leverage :-0

Crap broker DON'T GO THERE :eek:

I'm still there :cry:
 
JDTRADER said:
I joined Instaforex 1:1000 leverage :-0

Crap broker DON'T GO THERE :eek:

I'm still there :cry:
Click to expand...

1000 to one is a suicide mission in my eyes...

Maybe it works for some but i think i would have a nervous breakdown trading like this...

I seen Grec Secker do a 1000 a point on the ftse on you tube...trying to sell it as "this is how easy it is to trade and make 20 K in 20 seconds"

Criminal!
 
tonster01 said:
Hi all

Just a quick question for any of you have went out and traded full time here in London...

What is the minimum you think is required to be capitalised with in order to do so?

Its been suggested that 150K would be min needed if you were to assume gains of 20% per annum (as a target I know....may not always be achievable)

Has anyone else much experience of this...without using excessive leverage and risk?

Comments appreciated and yes I know I should take into account cost of living in London etc and all other costs

Thanks

T
Click to expand...

If you are a swing or position trader you might be able to get 2:1 annual profit/draw down ratio.

If so i would personally aim for 40% return with a 20% drawdown.

However if all you can get is 1:1, then you are looking at making 20% a year on average with a similar worst case drawdown.

How much starting capital do you need if you are making 20% a year on average.

If you live in london, you want to be making at least 100K a year.. otherwise you aren't going to be growing your pot by much each year (after living expenses).

So you need 500K.. Assuming worse case situation and you hit your 20% draw down straightaway.. your equity could drop to below 400K in the first year.

Lets say you start with 250K, and average 50K a year, after living expenses you probably only going to have 30K left over.. will take you a long time to compound your trading to the point of making good money.

Your living expenses should be quite minor compared to your trading profits.
 
2hourtrader said:
You should be.. rather than waiting to save up a huge amont of money andd then start risking that, you should be trading with waht you can afford now. Paper trading only teaches you part of the story.. the real lesson to learn is controlling your emotions, fear vs greed.. you can only do that risking real money. Dont wait to learn this with £150k! do it now.

regarding leverage........ you get amazing levarage with limited downside
Click to expand...

Great post mate :clap:
 
Chartsy said:
20% of 150k is 30k. Doesn't mean you need 150k to make 30k.

With all the leverage available, if you truly believe in your trades and go in big when the stars align, you could honestly make 30k in a year with 1000 starting.
Click to expand...

LOL your kidding right..
 
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