Anyone actually make living from trading?

Discussion in 'Trading' started by trade5656, Jan 29, 2017.

  1. Humpy

    Humpy

    I am horrified at the ideas of a 50% drawdown and being in a trade for months.
    I would recommend a 5 minute time frame and close ALL trades at closing each day.
    Then you will be able to sleep nights !!
     
    #171     Nov 4, 2017
  2. d08

    d08

    Just because you daytrade doesn't mean the drawdown seizes to exist at night.
     
    #172     Nov 4, 2017
  3. ironchef

    ironchef

    Your post actually make some sense to me. In a way it is like a version of Martingale.

    Another way to look at it is the way we save in an IRA/401K: You are all in and every month you add another fix amount into the mix. After 10-20-30 years, the outcome is typically better, ever after a couple of 2001-2, 2008-9.

    Other than your own account, have you done a simulation using historical returns to see if it works for other years?

    Best to you.
     
    #173     Nov 4, 2017
  4. comagnum

    comagnum

    Anyone actually make living from trading?

    Some of us older traders don't need to make much of a % gain due to our performance over the years and savings, just a bit every so often to top top off the tank from the living expenses - still aiming for big returns anyway. Currently I have a full time job working from home which I like, it really complements my trading in a big way - I think for most this is the sweet spot. Narrowing the % gains needed to live on takes a lot of heat off.

    Trading is no different than any other pursuit requiring a lot of determination, discipline, and time to hone in the skills. Only about 5% of people that say they want to get fit, shred on the guitar, surf big waves, dance the flamingo, flying an airplane, win a chess tournament, write a book, sail the 7 seas, climb Mt. Fuji, learn to speak a foreign language, start a business, etc. ever succeed - trading is no different.

    Those with unconditional persistence will do fine in the long run, it always takes a lot longer and costs a lot more in ironing out all the costly mistakes before hitting a stride. It took me getting beaten up badly a few times before things turned around and stayed that way.
     
    Last edited: Nov 4, 2017
    #174     Nov 4, 2017
  5. ironchef

    ironchef

    Well said.

    Trading is my only job since 2010 and by far the most fun. :D
     
    #175     Nov 4, 2017
    optaiwan and lawrence-lugar like this.
  6. comagnum

    comagnum

    Your profile says your occupation is retired and you sure ask a lot of questions for a full on do or die trader with 7 years. I would think trading for a living implies its your only source of income and you have nobody like a spouse or rich parents supporting you.
     
    Last edited: Nov 4, 2017
    #176     Nov 4, 2017
  7. Overnight

    Overnight

    Getting called out by a gumby doll, that is harsh.
     
    #177     Nov 4, 2017
    ironchef and comagnum like this.
  8. sle

    sle

    You obviously come from CTA background - any equity or derivatives quant has stumbled onto strategies like that and moved on with a sigh :) There are plenty such strategies. Usually it would be something that's (a) is capacity constrained and either (b) is high touch enough that it can not be fully automated or (c) is illiquid enough for larger players to stay away. (b) could be anything that requires reading unstructured data and understanding it. An ready example would be doing merger arbitrage on smaller companies where you can only participate if you have read the docs. (c) anything where liquidity is just not there, from odd-lots in MBS tranches to back month futures.
    For example, there are people playing event pricing in biotech/pharama stocks which satisfies a, b and c :)

    PS. why aren't there people doing it and arbing it away? because it's work and it's not exciting. It also requires a certain amount of brains and education - combine it with being capacity constrained and you will find that most people capable of doing it are doing better by being employed as traders/PMs.

    PPS. There is also a common occurrence in cross-sectional strategies where equal weighted portfolio produces a Sharpe of 3 while liquidity-weighted one produces a Sharpe of 0.5. It's good to be small sometimes - rats tend to eat better than tigers :)
     
    Last edited: Nov 4, 2017
    #178     Nov 4, 2017
    jtrader33 likes this.
  9. comagnum

    comagnum

    Getting called out by a gumby doll, that is harsh.

    "A fisherman will always see another fisherman from afar"

     
    #179     Nov 4, 2017
  10. sle

    sle

    Could you explain this particular cultural reference?
     
    #180     Nov 4, 2017