Good idea....keep the basics in front of you, and then you can say "why did I not look in front of me"... Don
if you have the money to sustain yourself in terms of living expenses.. then you might consider just stepping in right now. If you find that you are breaking even or maybe even making a few bucks here and there, just think about how your skills will fare in an easier more forgiving market. Just something to consider. momo
Momo, thanks for the suggestions. I've been making gross positive and progressively net positive days. The thing is as I've written before is I don't want to go broke before I can get really really good at this prop thing. Whereas, in the insitutional world, you are guarantee a base salary, bonus, and benefits,etc. blah blah. But not as much "fun" and freedom of a prop trading job of just going to work at market's open and leaving when the market is closed without any other corporate responsiblities - i.e. long-term projects, writeups, presentation to clients, board members,etc. blah blah. It would be ideal if I was super consistently net positive like even $1K/day would be nice. hehe at least it's a goal to aspire to. trader99
I hear what you are saying. Although, if you are trading methodically and conservatively then going "broke" won't become reality. It sounds like you are making steady progress. However, I would like to point out something. Although you love the stability and comfort a regular salaried job will give you. You detest the monotony that it foists upon you. You seek the freedom that daytrading affords you, but fear the lack of a safety net of guaranteed earnings. Therein lies the crux of the paradox. Someone very dear to me pointed this out early on. So, please don't take this as me trying to be "better than thou" She said to me, "Why are you looking for economic stability in your life from something as intrinsically Unstable as the markets?" It was as if, right then and there I had awaken from a self induced coma. I didn't have the answer then. Nor do I have it now. The answer will be different for everyone. Rest assured of these two things; Whatever the answer is for you, it will continue to drive you to trade each and everyday. However, it is also the very same thing that gone unanswered will keep you from reaching the pinnacle of your trading success. On your goal of 1k a day. That is very attainable. Realize this, if you put on a trade with the conviction that it will move in your favor for .20cents then whether your position size is 100 shrs. or 5000 shrs. should not matter. So long as they are treated with the same respect. Ask yourself what is the highest, most consistent amount I can extract from the market daily. If it's 20cents there is your thousand dollars. -momo
Goal-setting is nice, but wanting to make 1k/day, 500/day,250/day -- for me thinking that way was the kiss of death. Looking for .20 setups and just multiplying by X number of shares * days/year -- this kind of math is dangerous and was exactly what went through my mind before I blew out each time (once for stocks, once for futures -- funny how history repeats ). I would recommend setting how much maximum you could LOSE daily before shutting off the monitor, instead of targeting a gain/day. Consistently successful trading doesnt equal consistent profits; some days will yield bigger gains than others, and some days a small loss (your max loss/day perhaps) will be the best result possible. Remember how those daytrading shops used to sell "make just $300/day = 75k/year = leave at lunch, nice part-time job on the side"? Concentrate on a disciplined cap on the downside, and let the upside take care of itself. Just my opinion. What do I know . . .
liquidity is cyclical. and like it or lump it, this entire generation of traders has nursed at the breasts of easy money (that is, money supply). Throw in a manic bull market, and we've all become fat. It's natural to think we're good, but a rising tide lifts all boats. It's not wise 'to confuse brains with a bull market.' Sure, smart people made money. So did dumb ones. read up. you'll learn that the old timers on the floor used to sell vegetables during lunch hour to make ends meet. Read 'The Trouble with Prosperity' by James Grant (read anything by James Grant). Survival is the name of the game, not 'rock-star-status.' Ace Greenberg once said, 'You can't eat like an elephant and crap like a canary.'
I know another version of this saying: "You can't eat like a bird and crap like an elephant" which is actualy equal to "Let your winners run and cut your losers short".