Met with prop firm and they told me that 1st year traders have a hard time making a living, typical trader might make $20k. Is this true? What can a good trader expect to make after 2-3 years? Would you leave a $50k safe job to try to make it at a prop firm? I'm ready to make the leap.
Your first post to this board was in February 2004 saying that you want to get into trading. It is now April and you say you are ready to take the leap. Are you sure you are ready?
A typical trader can make nothing in his/her first year. After that who knows, some guys make big $$ and others go on to lead quiet lives of desperation. Good luck but expect to live with no money, because if you really need it then it becomes harder to achieve because you are constantly worried about the money not the trade.
Thanks Jimmy. Caplan, the reason that I posted a second thread is because no one really answered my question with actual numbers. Everyone is afraid to talk about salary around here. The board is anonymous, and I wasn't afraid to post my salary, so why are you? All I'm looking for are honest answers, so that I can make an educated decision. Thats what this site is about, helping other traders by giving honest advice.
I apologize if my original tone sounded rude, I didn't mean to be. I just wanted to make sure that you were ready to begin a very difficult journey and was concerned that a few months might not be enough time. I personally do not trade full time. When I do trade, my results are mediocre at best. As of now, I am reading up as much as I can and trying to get experience any way that I can so that when I am ready to go full-time I will be as ready as I can. As for salary, it really depends on how much capital you start out with. If you start out with $1,000,000, it would be much easier to make $50,000 than it would be if you started out with $30,000. You need to know how much you are going to start out with, as well as the risk level you want to take. Could you handle losing 20% of your capital in your first week? This is why risk analysis is important.
Where have you been reading? This thread gives some idea http://www.elitetrader.com/vb/showthread.php?s=&postid=467412#post467412 Another excellent thread is by a member who lost $240,000 from sep 2003 - January 2004. (Unfortunately he seems to have stopped posting) I was down $20,000 for 2003 but have only lost $3000 so far this year. Then there are people like thetraderprofit whose annual income is in 6 and 7 figures. Its a variable business. Like becoming a professional gambler - who can say what income you will make.
I don't agree. I think the typical 1st year trader makes less, and is often lucky to be in the black. As far as after 2 or 3 years, that depends on how rare a trader you are talking about.
The typical trader makes NOTHING. 90% of the people fail. As for the successful ones, do not expect any money the first year. It is very normal to be down in the account and then make it back. After it all, you're probably not be up much but you will on your way. DO NOT put any expectations on a pay out deadline because it will eat you up and make you fail. I was down a little over 10k at the max losing point. It took me over a month to get flat and then another month to build up capital. I finally got a check the next month.
Of course, a lot depends on who's doing the teaching and what their "certification" really is. for example, if the teachers were successful in their same methods under present trading circumstances, then there's a greater than higher probability that you too will be successful. if the teachers only have a two trick pony, then, these estimates just might be true