I wanted to post this question here. Might be a stupid question, but just trying to look at this from a realistic perspective. Am I wasting my time chasing the "trade for a living" dream? I've done countless hours or research and it seems that the only people making real money in this industry are selling their systems or selling their mentoring and coaching services. Additionally, I took a step back and thought about the potential outcomes and none of them really seem to add up either. The best-case scenario to me would look like I make several thousand for all the time and energy put into it, and that might not even be realistic. - Trading with only $100k of capital is not even close enough to potentially trade for a living - No path to raise real money from outside investors in the US with all the SEC red tape. - No track record - Lastly and most importantly, I feel that there is barely any edge out there for the retail trader. With all the competition in the market, I find it very hard to believe anybody out there truly makes an income from just trading for a living. I started my trading education path back in 2011 up until about 2016 then life came around, but recently I've been coming back to the drawing board but this time around knowing what I know now, I am wondering if this is even a realistic path to go down or if I should just stop now and focus my time on something that could pay off more instead of going down the rabbit hole. Again, this might be stupid, and I am sure I will get a lot of "noob thinks he is going to make millions overnight" or "haven't even traded yet and is already going to quit" type replies but I'm just trying to look at this from a realistic and logical path this time around. Thanks!
100k risk capital is enough. But, you aren't going to be living large until you double at least once. Have to be realistic about what kind of income you can generate under risk controls. There is edge, but retail isn't prepared. Generally speaking, they don't know the treasury market, and they don't know professional trading techniques. If you can't clearly describe your edge, and are not confident in your ability to make out sized returns exploiting it, then you probably don't have one.
1. for sure, you should assume realistic returns of ~15-20%, so you need at least 500k to make a living. 2. it's not as hard if you are aiming for friends & family money, SEC regulations really start impacting you at 25 million or so 3. that's something that you have to build up and if OPM is where you're going, have a setup that can be audited 4. thats not true - smaller investor has an edge over larger players, as there are plenty of capacity constrained strategies that you can find and run
All pursuits beyond the 9-5 involves uncertainty. For every successful entrepreneur or trader you never hear about those who didn't make it and even put in substantial efforts over years. Trading is probably the most difficult business to pursue as you're basically on your own and those who know something worthwhile sharing doesn't, while those who don't dispense their advice freely or in the form of an e-book for $39.99. As long as there's liquidity and you can buy and sell when you want - who are you competing against? This is a personal decision only you can make. Some questions worth considering. What alternatives do you have? What's the cost (not necessarily monetary) of continuing to pursue trading while forsaking other options? Generally, my advice to everyone would be to pursue a (well-paid) career and invest/swing trade excess capital/savings on the side instead. I firmly believe most people would be far better off choosing that option.
Define "A Living". Now ask yourself if it is realistic to attain that with 100k capital. Not the "Living" I need to maintain my lifestyle. FWIW; I make a living but I'm well capitalized. I swing trade stocks. My returns are around 20%.
Lol, sounds very familiar. I can’t tell you what you need to do, but I said to myself that even if I fail, I win. I win by trying, by learning, by improving. Does this attitude make it easy in reality? Hell no! It’s very frustrating “wasting” all this time with nothing to show for it. No indication that you will ever have anything to show for it. Can you handle it? Can your family handle it? Even IF you make it, will it be worth it?
If you live in an expensive area and jobs that are well paid, trading does not make sense. With $100k capital and possibly averaging returns of 30-40%, you will not advance anywhere. Now if your living expenses are around $10k per year, things start to become interesting. There are methods retail traders can still use but nothing that works the same year over year. You will see markets changing and you have to adapt or die.
The question is how long you been learning to trade? It seems that you are distracted and have been giving it a haphazard effort. A lot of people aspire to trade but, do not give it enough effort. Now, more than ever, there is an abundance of information on the internet and trading videos on You Tube. When I started, I had to pay for services costing thousands, be it information based trading systems or training. None of it worked. The obvious reason is the trading system was no good and those conducting the training had no clue. Not everyone who claims they are a guru is one. Most are mere charlatans out to get your monies. Now, add to that the lies and misinformation spread by CNBC and Bloomberg, ET trolls telling you what the market should be doing and you got a cesspool for bogus information. $100,000 as a capital is enough if you manage it smartly. A lot of traders start with only $1,000-$2,000. Sure, they do not have enough but, what matters is how you manage your monies. Position sizing and risk management which is ignored by a lot of traders. Maybe, you do not have enough of an interest to be a trader so, give it up now. If you want to be really a successful trader, roll up your sleeves and get to work.
Man...you one of the smartest "noob" posters I have seen on this site. Most "noobs" coming here are either completely broke and think they can trade for a living via the "we will fun you outfits if you can pass our test" or they expect to average a few ES points daily on their grossly under-capitalized account. My advice is build your career outside of trading and swing trade on the side with your $100k and contribute heavily to all retirement vehicles.