How long did it take you to become a **consistently** profitable trader?

Discussion in 'Professional Trading' started by Iwilldoit, Jul 25, 2015.

  1. In my guess, at least 5 or 10 years is necessary to say "I have profitable logic" for almost sure.
    If you say, like Buffet, that over 45 years my profit was outperformed 12% over the index, then surely you are the winner.

    Note that in the last 45 years the SnP500 index showed roughly 8%. Therfore 8+12=20% might be the best performance in the world, which compounded the initial seed to 4000 times, over the 45 years.
    See the link at http://www.berkshirehathaway.com/letters/2014ltr.pdf

    If there is better performance achieved than the 4000 times (roughly in one's life for 45 years), tell me now.

    For a practical example, seed of 10K should be compounded to 4000*10K=40M (also initial 100K should go to 400M) for his entire life for 45 years.
     
    Last edited: Aug 1, 2015
    #31     Aug 1, 2015
  2. Furthermore, since most readers in this article did NOT spend 45 years in trading yet, tell me

    1) In my first 5 years, my seed has been compounded to 1.2^5 =2.48832 = 2.5 times.
    2) In 10 years, 1.2^10 = 6.191736 = 6.2 times.
    3) in 20 years, 1.2^20 = 38.3376 = 38 times.
    4) in 30 years, 1.2^30 = 237.3763 = 237 times.
    5) in 40 years, 1.2^40 = 1469.772 = 1470 times.

    Note that all the above 5 cases are same growth in compounding.
    Also, if you are healthy enough to live 10 more years than your buddy with same annual 20% performance logic, then you have a chance to make 6.2 times of his/her fortune than your buddy.
     
    #32     Aug 1, 2015

  3. Wow @rmorse, you are a very fast learner !

    I've never heard of anyone becoming consistently profitable within 6 months on deciding on becoming a trader
     
    #33     Aug 24, 2015
  4. @Handle123 Thats a heap of money to lose.

    How about I trade in Sim until I have doubled my account? (Even if it takes me seven years)

    That is why I have been backtesting (no real money trading) for the past year, until I have found a model that has an acceptable win ratio, drawdown etc.

    How did that seven year losing streak psychologically and personally affect you? (ie. how did your wife/family react? how did you maintain your self esteem/ self confidence? ) I think most would be depressed if they ran a business that was losing seven years in a row.

    Please remember, I ask these questions out of respect.

    Thanks,

    IWDI.
     
    #34     Aug 24, 2015
  5. Handle123

    Handle123

    I think best is doing 1000% before you try real money and only do one lots, you have to be so ready coming out of the gate, you going to compete against the very best.

    I wasn't married at the time and no kids, I was buying houses from near bankrupt builders for huge discounts, lived in them as I started finishing them few hours a day after I day traded 3-4 hours then go work for government nights. I kept so busy, didn't eat me up like others. I saw it differently than most, saw it as opportunities as a way not to do again. I was making money trading stocks, the leverage really messed me up.
     
    #35     Aug 24, 2015
  6. jinxu

    jinxu

    I'm kind of curious about this: Why didn't you post a poll in addition to your OP? Don't you think a poll would be relevant and beneficial?
     
    #36     Aug 24, 2015
  7. I did.

    Take the poll .
     
    #37     Aug 24, 2015
  8. jinxu

    jinxu

    I meant a poll like this:

    [​IMG]
     
    #38     Aug 25, 2015
  9. TraDaToR

    TraDaToR

    6 years after starting investing, 2 years after starting daytrading and taking it seriously.
     
    #39     Aug 25, 2015
  10. formica

    formica

    Its been nearly 2 years for me but still not a consistent result. I have a strategy but my problem is patience. As my account capital is not big one so I try to make large profit from small capital and boom, mostly get a margin call.
     
    #40     Aug 26, 2015