Oh yes, JL, there is something so important that I want you to start right now, and repeat this over and over to yourself, all day as long as u can, everyday - and do not stop until you truly believe it to be so. Every trade is a loser, until closed with a profit! J_S
in case u have not noticed..we have already started..go check psychology section..and some monkeys have already appeared..but do not fear..i have bought a big box of bananas..and they are on me..free of charge
Hey Josh, you might want to shop around different prop trading firms and see if they would enter into a profit sharing agreement with you. Most prop shops require a minimum contribution (around 5k), but some are willing to back you for capital in exchange for a percentage of your profit.
I think another important thing that newer traders don't address is how to stay in the game once you have made it. Trading is a roller coaster financially. ALL traders go through draw downs, nobody is immune from that. So when you do go on a good run, bank a part of it for the down times. Give yourself something to fall back on when those tough trading times pop up. Trading is always going to be tough mentally, but when it gets to the point where you HAVE to make money to pay important bills then it really get tough. So to avoid the extra pressure bank some of the profits during the good times. Also don't go out and blow a ton of cash just because you had one good month. At my old firm we would go through some great trading periods and you would see the younger guys buying all sorts of crazy shit, thinking the good times would never end. They figured they could make the same pile of money each month. So between buying cars...condos, and gambling (Vegas trips) they spent a lot if not all of their profits.So when the draw down times came they had nothing, couldn't pay bills so they had to sell back their toys. I think a huge part of the game is survival, and one great way to survive is bank a good part of profits and have them in reserves when/if you hit a draw down period. That extra pressure of not having the money to survive unless they hit it big trading again would put them on a course of real sloppy...stupid...high risk trading. Any edge they had was history when they went down this road. The become 100% gamblers. I would see guys that normally had a big edge and well planned out strategy go into full gambling mode. Taking large positions 5 mins before a big earnings report. Trading big futures positions in from of key economic reports. Trading a large CL trade right before the EIA report at 10:30. At this point they have no edge and are just gambling away.
Trade futures spreads. That is your best bet, considering your bankroll. You can keep your job. This is not day-trading per se but you can see if you got what it takes. I would avoid Forex.
What kind of risk per trade in $terms are you talking about, as to be honest, I did look at some index futures spreads, but could not identify any trading opportunities, but that means nothing as I know very little bout spread trading futures and futures options. J_S
Josh- I'll throw in my 2 cents. While I haven't been day trading very long, I've been in the business over 25 years as a broker. Day trading is a completely different animal. It sounds like you have done some good things already by coming up with a strategy, and testing it in a sim environment. Keep in mind (as you have heard before) that real money on the line makes trading a whole different deal from sim. You have gotten some solid advice from J Smith and EPrado. It is good to be teachable. While strategy is important, the psychological aspect of trading is far more important in my opinion. I think there have been studies done that show even random entries can be profitable with proper money management. Money management has everything to do with psychology. Can you cut your losses? Can you ride your winners? It's all a mind game. Prado gives some really solid advice. If you make it, it will take much longer than you think. I would say multiple the time you think it will take by 2 or 3. I'm not even kidding. If you think you can make a living in 6 months, plan on a year or 18 months. If you aren't discouraged by then, you stand a decent chance. Save your money and keep a job for as long as you can while you learn to be profitable. Lastly, I would say stay positive. There may be days, where every trade turns to shit. But people are doing this for a living. It can be done, and you ask the right question. Why not me?
Nice to see someone in the game who is honest. Agree with every word u said, and will add that options can be daytraded effectively with small risk, once you identify the best instrument and know a bit about reading charts - those who only rely on the maths end of things have no idea what they are missing out on! If they could get down off their high horses, and learn what needs to be learned, then, and only then, will they beat the market makers at their own game. J_S