Those college dropouts, with no job, no savings, no anything that get into trading undercapitalized will blowup? Only those wealthy individuals who have over $500k (or at least $300k plus other sources of income) will profit in the long run?
Everyone's experience is different in trading... as in life there are always exceptions to the averages. the beauty is having the choice(s) in America.
yup.. what the OP post is. makes sense.. the biggest fall of trading is.. we figure out how much we need to sustain our life style and then try to demand that from trading while it is VICE VERSA,, we have to take what the current setup of our strategy(hope fully we have one!) GIVES us at the moment in time, keeping in mind our RISK/REWARD
My goals I feel are realistic. I will be starting out underfunded, but over time my funds will grow. I have a full-time job. After monthly expenses, I have just over $500.00 left over each month. In 17 days I will finally be out of debt. Instead of directing that $500.00 per month into paying off my debt, it will go into my savings. When my savings reach $1500.00 I will open a brokerage account and start trading, adding $500.00 per month to the account thereafter. Since I don't have to rely on my trading account to live on, I won't feel the need to make alot of money. I can take my time learning. A all-in one day trade per week during the first hour of the stock market is my strategy. I decided on this strategy because of a combination of the T+3 settlement rules, being underfunded, and working evenings and weekends. As time goes on, I will wind down the all-in approach. My goals are small. $10 per week starting out. I will not be trading options, just sticking to stock trades. I don't expect to reach my starting goal for a long time, which is why it is important to be out of debt when starting to trade. I won't need to make money from trading, so I probably will succeed. Only time will tell.
Without debt and good credit, I have options to deal with emergencies as I encounter them. There is no point in hoarding money or getting insurance when those funds could be used to earn money instead. I would also have the option of liquidating my brokerage account if need be, so it is pretty much the same as a savings account in that sense.
I don't think so. It depends, if you know how to handle your money. There are some people who, even with over $300k resources, still fail. And there are some even with just enough resources, who becomes successful. It actually depends on what your goals are really are. Most of the time, if you're thinking that you MUST earn money, it is somehow a form of encouragement to yourself.