How do noobs make ends meet?

Discussion in 'Prop Firms' started by dv4632, Aug 10, 2012.

  1. dv4632

    dv4632

    Just wondering how newer prop traders who are still learning the ropes (and thus not making any trading income, or making very little trading income) support themselves?

    It seems to me that trading full-time and working a full-time job wouldn't leave much room for anything else in life, even sleep!

    So how have people done it? Live off savings? Live with family? Work part-time job?
     
  2. Many people live at home or have financial support from family. Others that are truly devoted will do the grunt work and get another job or work really late at night (I know of a programmer who SENDS emails at 4am). In order to be successful with anything in life you have to look for opportunity and take risks and work hard (working nights and weeknights isn't unreasonable if you want the freedom associated with being an independent trader. it requires a lot of entrepreneurial skills. I've seen hundreds of traders of the years. The difference between the ones that ultimately succeed and ones that don't are 2 things:

    1) Due Diligence: you have to start small and test your strategy and control your risk. If you look at trading as a method to pay your bills stop right there. Save your money and first get your financial situation together. In order to be an independent trader, you have to first be independent and capable of understanding that learning anything that will produce a decent amount of income takes years of studying and research (and I don't mean getting a college degree. I mean participating in the market).

    2) Income Dependency: Any trader needs to understand that starting your own business such as trading requires a serious financial investment and risk is involved. If you plan on being successful don't expect to put up 5,000 for a prop firm, get free training and begin to make a living off this. The odds of being successful this way are 1 in 1,000. You should understand all the fees associated with having a leveraged trading account and you have to have a plan and manage your money in a professional manner.
     
  3. for newb traders

    1. live on the cheap
    2. get a second job/part time (to keep your mind of trading 24-7 and pay the bills)
    3. the first 6 months seems to kill most traders (blown account as they try to make up for lost time since they havent made the money they need)
     
  4. buzzie77

    buzzie77

    They don't make ends meat. I was a recent risk manager, not going to say where, let's just say the intraday trading game is over. The 1% stars will always adapt and make money, the other 99% don't have a chance anymore. Get a real job or get real about trading, don't half ass it.
     
  5. Maverick74

    Maverick74

    You need to have a minimum of two years of savings in the bank. No questions asked. That's to live on. Then you need to have a decent size trading account so you are not under margin pressure. If after the first 12 months you are not making any money, then you need to get a night job while you're in year 2. This is a business and you can't just wing it. The greatest weakness of every trader is their greatest strength. Their self confidence. One needs to "believe" in order to make this work. But it's that same confidence that makes them think they have some edge when they really don't and they refuse to get a night job because they think they are "almost" there.
     
  6. The intra day trading game is over? I guess i didn't get that memo. And if you don't think trading successfully is a real job, then that is why... Well, nevermind.

    There is always something moving, people. If you concentrate on what has volume, it is much easier to read what the other guy might be thinking.

    But more to the point of the thread, i have bartended, i have helped out on neighboring farms on the weekends,and even had a night shift factory job years ago. And when you finally get to the point where you realize you are on your way, it is still a grind.

    I agree that most new guys don't make ends meet without outside help. If you are successful right off the bat, then you are one of the proud few. But you need experience to make it happen consistently. Nothing beats experience.