Becoming A Trader

rew · Jun 25, 2011

Quote from luckybastard:

We're speaking different languages here. You're the guy selling futures during your lunch, because your style is much more investing than trading.

I'm the guy who has been professionally daytrading for 12 years now, executing hundreds of trades per day. My style has pretty much 0 to do with investing. In my type of business, there's not much chance of succeeding for newbies nowadays. The HFT movement has taken over.

However, computers have a lot more difficulty calculating the right investment decisions. But again, in my world, that's not called trading (though you'd probably call it 'swing trading' or something like that). .

One thing I'd like to add is about your remark about IQ. I disagree. I've met quite a few traders and investors in the 12 years that I've been trading, easily over 100, and one thing I know for sure is that IQ is not a factor. Well, the succesful ones have in common that they have at least something like 120 (they're smarter than average joe), but above that, it's really not the IQ that makes the difference ...Things like dedication and the psychology aspects become much more important there
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Just because intradaybill makes trades that last longer than a day doesn't mean he is making an "investment". Hell, a buying or selling futures or options is pretty much trading by definition. Investors buy stocks or real estate. Investments don't have expiration dates.

Newbie71 · Jun 26, 2011

Quote from FrankSlaughtery:

to the OP, i strongly suggest you disregard everything the previous poster said. maybe in his world you shouldn't even attempt to trade unless you have $38 billion like paulson.

i've been in the EXACT same position you described and i've been able to continually improve as a trader and make money from a small initial amount. yes this means taking on more risk but you already knew this. you could trade in options (long only) if you have a strategy w/ an edge? this means you need to put the hours in the chair studying the market, testing hypotheses, etc. remember don't take really risky trades just to get a bigger account balance. the power of compounding is a powerful thing.

the most important thing is to NEVER GIVE UP. if anyone tells you you won't make it or worse that you shouldn't even try STOP listening to that person immediately and never listen to them again. they will only distract you from your goal.

OP, if you have any questions you can PM me or post general ones on the board. good luck.
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Becoming A Trader

rew

Newbie71