Yes, you are right. When I was first getting into systematic trading, I would go through the historic day-to-day results of my system, and realized then that even with a system, there is a lot of emotional ups and downs (5 losing days in a row not uncommon, strings of losing weeks, months, deep drawdowns, etc)....actually trading it over time has gotten me used to the bumps in the road which is great.....obviously, the other big concern is that these systems can and do stop working, and then what? This ties into the bigger picture of why I need other sources of income....sadly, I believe a big part of this trading life is outguessing the other players at the poker table. Others may disagree. Many of these players are better equipped, better located, and more intelligent than I am. Much deeper pockets/resources. My results have forced me to ask myself if this is something I can rely on to live any sort of normal/reliable life? I don't think it is, not without a significant secondary income.
%% LOL; well it does makes sense to exclude the first year, even though it really should be factored in , maybe in a seperate figure. HARD to imagine a burn rate of less that $25?? LOL You must buy your charcoal-wood @ grocery store retail, or eat out every 3-7 days, maybe still rent or finance your home + car?? I've financed a lot of RE as a younger man + that could make sense sometimes. Of course if a wife want to really, really eat out every 7 or 77 days; maybe ok , if the trading business or green business make$ money. + it fits the budget. Sounds like he did much better that that silver state gambler that ran up an account with options to 7 figures , then zero+ 6 figures credit card debt, WSJ FEB\LOL
Good plan and yes they are. Don't worry about the hole in your resume, just prepare your backstory/reasoning and be able to sell yourself. Hiring managers in this area at bigger companies will most likely care more about what you can speak to and show competence in. If you have experience with database management and modeling bring it up in interviews. Even just advanced excel knowledge. Just don't try to bullshit about something you're unsure of because there will be at least one competent interviewer who will know if you're full of it. Also, HR doesn't matter all that much...they just want a perceived culture fit. A hiring manager will override HR's preferences if they like you enough.
Seems like the real issue was you were trading a small account..... If you were doing 25% per the last 4 years,you are ahead of 99% of the "Elite" traders on this board...
%% Good points; except \Harry Solomon Trueman was a conservative dem\LOL. But he is a hero of mine anyway; +Chicago press lied about him, headline said ''DEWEY Beats Truman'' LOL.Liars in press. Congrats on figuring out your wife would want you back in office; sounds like she is right for now anyway, can still swing swing trade sometimes + invest some; looks like SPY 2023 = up \Jan = up. EVEN though some dimwit managers look @ self employment ''gap'' negative= that thier problem. Swing traders + investors make money mostly [LOL] off 'gaps'' W buffet , strangely is jealous of many short term traders even if he makes more in long run as investor with oil companies+ selling TSM........................ Thanks.
So the problem wasn't that you were not profitable, but that you relied 100% on your trading profit to make a living. Depending on the time you were spending on your trading activities, 25% CAGR is really good. You've never stated what was your criteria of success. For many traders, 25% CAGR would be a success...
Yes, exactly! If you had started with say 500K, with those gains, you'd be in a very different place and adding wealth as we speak. I think you have a lot to sell to an employer: 1) Great emotional stability and discipline. In 7 years you were profitable in an extremely tough game that would have depleted the majority of accounts in that time frame. 2) You learned as you progressed.You started off with some losses, did X, Y, Z, to improve and did amazing over the past 4 years. 3) Somehow you managed to do well last year (or at minimum not get killed). Personally, it was an extreme anomaly year for my systems and it was a bit of a blood bath. 4) 10% annualized returns crushes most traders, I'd think. If you looked at hedge funds that started 7 years ago and their annualized returns, I'm sure you are above the 50 percentile, and you are a 1 person band living off their returns. I don't know, I'm impressed and I think you have a LOT you could sell to your next employer or the hedge fund world, etc., if you choose. Oh BTW, sorry about the standard of living comment, I'm glad Taowave pointed out that I had the best of intentions, as I did. Just worded it poorly. Thanks for your story and Good luck!
During volatile markets everyone is pretty much equal. Anyone trading a momentum strategy gets to print money. Shame those markets don't last for ever With some one like AMP, intra day margin rates, you can buy as much Futures as you realistically ever need. There is no competition during the easy times, or shortage of buying power.
Just curious what the last 7 years woud've given us just sitting on our ass investing instead. Anybody else feel like crap knowing this lol
LOL sometimes ; not @ all in 2022. But i do wish ,as you noted ,had some more SPY, UPRO+ spyg dividends; have gotten dividends off all those, may not so much off SPYG DIA + XOM pays a good dividend, better than spy; but i like capital gains in my Roth better. I did get some UPRO investments in FEB; i tried to buy SPY today, but i've watched + traded ,invested in UPRO,sso so much, hard to buy spy. SPY does pay a better yield than most