experience. if you stare for years,day after day on just 3 numbers (bid/ask/last)then sooner or later smart,creative person probably will come up with something that will work for him.
It's a good one to use. Lot's of traders have a few good years and think they're on their way. Then boom, they're gone.
i agree with your definition of "trader", but disagree on numbers above. i'm in zilch category for years. you can take my 1040 as a proof.
Traders are into trading for big money. Most traders can very easily make 75K to 150K after say 10 years working a corporate job. I am convinced that trading for most is a losing game. People who consistently make money at trading in bull and bear markets have an edge and that edge comes from superior computing and mathematical skills, and that kind of edge can not be had at a prop firm. A good way to make money with trading is to trade with other people's money, share the winnings and losses are all theirs. But the gig is up. The best way to make money is to take a corporate job and create value, but how many people really want to make an effort into that.
Hey Crimson, you're supposed to say "what's nunja?" And then I was going to say "nunja business" and I was going to laugh... but no, you're all serious apparently...
Could I ask you a personal question.. why are you on ET? Do you expect somebody with computing and math skills to share all their hard work's rewards with you? I mean, we've had great academic folk with advanced degrees and professorships come to this site arguing, and with fantastically rigorous proof that trading can't be done.. on this site, which is owned by guys that made $100 million TRADING.... if you want to invest, or add value, go for it, there's Motley Fool for example, and oh, a jobless recovery is right around the corner too, ask Obama about that, he'll tell you that government is the answer, he must be another academic or something...
Truer words were never spoken. The best job in the world is one where you can literally lose 100% of another person's money, still be entitled to a fee, and they have no recourse. ...assuming one has no conscience. 'Ya all down with OPM?
There are millions of self-employed in the US. Pool cleaners, lawyers, psychologists up to company owners and yes, traders too. Are they all millionaires? No. Why would the world of trading be any different? Some do well, most don't. Just like in any other business people come into trading with a lack of passion, a lack of capital and a lack of discipline and completely wrong expectations.
why are you trying to spoil the fun by asking these questions? ET is an entertainment medium, not a gathering of successful traders btw, your question is strictly prohibited by applicable forum rules. you are allowed to feel thrilled about trading, about brokers and about buying something. you are not allowed to ask if trading is a profitable business, because this frustrates ETers. i would be VERY SURPRISED if anyone, A SINGLE ETer, has made 50K or more for three years in a row, from their trading in terms of capital, if you're a really good trader, you can aim at something like 20-30% annual return. you do the calculation, in terms of capitalization. some people write about the markets, take michael covel, for example, with his famous work on the turtle movement. being an observer is a better position to be in, in my opinion btw, there are some interesting trading systems offered by gilberto ruggiero of trader's studio. the systems are not free, but ruggiero's desire to understand something about intermarket relationships is quite sincere. before purchasing anyone's trading system, check out stuff in the public domain first. a simple MA crossover system may do no worse than a 'proprietary' system. just read some articles by dr. brett streetbarger, and you'll get the gist of what trading is all about.