How do you become a professional trader ?

Discussion in 'Professional Trading' started by nell, Sep 20, 2008.

  1. nell


    Hi guys,

    I'm in my thirty right now, and wants about make living from trading. My previous work is self employed, I have some trading (the real trading) business - anyway, i have seen Stock trading is the best way and I focusing in this right now.

    I just want to know, who's using credit spread as their strategy month to month and compounding them ?

    I use Iron Condor, and use them for a nice whole year, until recently my accounts blew up :(

    It took my whole profit + 15% loss from my whole capital. It's around $20,000 loss up to now. Damn !!

    My Iron condor criteria, i always using probability of touching 90% (based on IV), if you using TOS - you will know that. Usually the range between strike price and current price is about 10% And target for 6%-10% profit only.

    Most of the time i let it expired worthless, because with my target only 6%-10% it hard for me to close it 10 days before expiration and else I already do a backtest, I calculate month to month highest close-lowest close and it rarely exceed 10% ranging.

    If it's close/touch to my strike price, most of the time i roll it down around 5% of the strike price to lower the loss. I never let it go below my strike price whatever the market issue is. And most of the time is works

    I usually trade with index RUT/SPX/NDX - and some IWM/SPY/QQQQ/DIA/DJX.

    I have a nice profit during 8-9 months and I compound it step by step, I think i already get around 50%-60% profit because of my compound. Yes, there's some lose, but entirely my portfolio was good, if I loss 1-2, i still win on the other.

    My blue print plan is, I know within 1 year - I will loss 1-3 times eventhough my Iron condor is high probability strategy, I already prepare to risk 30% of the margin of each stock, and based on my calculation - it still give profit for a whole year.

    But this month, i blew up - i only use half of my money, but I loss around 70%, it sucks man !! It's because panic selling (only in a week, most of index go down more than 10% and it makes me to close/roll down my put spread). Honestly, I put my emotion too that time, and let fear controlling me.

    The things right now, I'm about to make living from trading. But the time I want to start, my accounts blew up. I confuse right now, i decide to not trading anything from now. But who's paying for my living cost ?

    The best way is i trade again, but with my current mindset and my emotion i need time to gain more confidence and clear my mind.

    What is the best credit spread strategy that give consistent profit (eventhough it's small) with high probability ?
    What do i need to trading for living ? I know I must eliminate emotion and to be discipline, i already apply that.

    I have loss my confidence right now, but i still believe i can make living from trading

    What must i do right now ?
    I want to ask some advice with you guys, most of you more professional and more experience.I only need positive advice, please do not give any comments if you are only want to pick a fight and just to make me down. My future depends on this.

    I think i need input from you, especially those who already do trade for a living from your own pocket money (not a broker/fund manager/etc), I want to learn from you as I about to start.

    Hope get the best from you !!
  2. Find charts where you can view 9 months, 3 months, 1 month, 5 day, 1 day. Then look at around 1,000 stocks at all different kinds of prices. Stare at those charts for at least 5 hours a day for around 6 months. See if anything comes to you. This is called natural education believe it or not.
  3. by losing money. experience. take it as a college degree.
  4. Here I was typing a serious answer, and then saw the OP is from September 2008. :mad:
    lawrence-lugar likes this.