Nwbprop--I'm not trying to discourage you from becoming a daytrader! Personally, I love daytrading and I can't imagine doing anything else (except being a prop firm owner of course). I'm just trying to present the facts to you so you can make an educated decision. Of course, these facts are based on my limited experiences and therefore biased. You have to understand the difficulties in today's market. As an example, in the year 2000, I netted around $250K and I was only a middle of the pack trader! In 2001, I netted around $50K and in 2002, I'm pretty much flat! I've got 3 years of experience and consider myself a pretty solid Nasdaq trader. If you've got a good paying job, I'd consider waiting it out a bit until the market starts to show some volatility and follow through. We're currently in a trendless, low volume market and, truthfully, I doubt you'll make a cent in this market. If my experienced colleagues and I are struggling, you can be damn sure that you will too! Please tread softly and don't believe the hype in some of these posts! If you are still committed to becoming a daytrader, you better understand that you won't be able to pay rent for a while. If you're willing to make the financial sacrifice, and knowing that the odds of making a very good living in daytrading are small, then I welcome you into our brotherhood with open arms! Good luck!
goldenarm--let me get this right, what you are saying is it is practically impossible for a newbie or experienced trader to net 250k this year due to the market. that kind of sucks. I am hoping that i will learn the ropes this year and the market will turn around.....hoping of course .thanx for posting your track record. facts are always much more concrete than a lot of these hypothetical posts. I was hoping other traders would post their track record. I do have a friend in one of these prop firms who sais the same thing regarding his firm. some of the best traders from the past few years are only making 50k at best for the year. Do you guys think someone who is learning in this market will be better off when the market becomes more volatile or a bull market? Do you gusy see the day trading market getting better in the near future? if so, how long? thanx in advace
Don-what are the right markets you are referrring too? are you saying the nasdaq is not a viable option for security traders? thanx jc
If you learn to make money in a tough market you will be better off when things get better. Do not get caught up in that way of thinking however. It is better to think that this is how the market is now, how can I make money in this market. Things could stay this way for a while. If you want to trade then do it. Bartend at night if you need to until you catch on.......... Just do it.
Wow...out of curiousity...what markets or financial instruments are you trading for it to lack volatility and follow through. You also said we are in a trendless market? Where? As for volume...not much of an issue unless your attempting to trade those DEAD ZONE and then I would agree such periods are low volume. By the way I trade the Emini Futures and QQQ. Plenty of intraday trends, plenty of volatility. Trust me...there are traders out there making a profit in this market environment and doing damn ok at it. What do I mean by damn ok? Paying the bills, supporting the family and putting money into the bank for a rainy day...and I didn't even make 250k in 2000 I truly hope your going to reply and say your trading something else because I would STRONGLY disagree with your comments if your trading the Eminis or QQQ. Thus, trading is a viable career...at least in my opinion and personal experience. Those traders I personally do know that are struggling...are applying the same trading methodology they used during the bull run...they are either flat or worst. Nihaba Ashi
FWIW, I trade next to two traders who both have less than 1 year experience. Both of them have been profitable for a while. They both average in the 8 to 10k monthly range. They have done this by ONLY trading 2 stocks which they know very well. These are high beta NYSE stocks which follow the futures pretty well. One of them is extremely discplined, very rarely trades between 11:30 -2:00.
I also agree with Easyrider.... If you love to trade, the results will follow. If you trade to make money, it will be a difficult road to travel. Within my trading circle, I would say that 20% of the people are making money, and the other 80% or still on the that road looking for their destination. In my opinion, it takes at least two years to develop your skills and get to a place of comfort all the while paying your market tuition. There are people who can make a living within the first year, but I think that a two year internship is more reasonable.
I'm only trading Nasdaq stocks via Level 2. I've never tried options, futures or listed stocks and I only dabble in the QQQs through Island and Instinet. When I say that the market is not trending and has no follow through, I mean the Nasdaq. Am I the only one who's noticed that it's stuck in a range? In the last several months, the index hasn't really been going anywhere. Stocks have no follow-through (relative to past years). In other words, they don't go up points, they go up dimes (if you're lucky).
It's possible for a newbie or anyone else to net $250,000 per year. It's not likely though. People should keep things in perspective. If you make $1 a year after expenses then that makes you one of the best traders in the world. Another bit of useless info, the top 2% of American households median yearly before tax income is $250,000 a year. Brandon
brandonf-i know 250k is a lot of money and only 2% of america have that kind of income BUT if i had chose the institutional path, i would make that kind of income in 3 to 4 years; which is my opportunity cost of trading. Therefore, it is fair to keep that kind of money in consideration. Either way i chose securities trading. It wasnt the money but lifestyle that was appealing. All i hope for is to survive my first year. IF only the markets would get better jc