Is it possible to become rich by trading?

Discussion in 'Trading' started by johnmmf, Jan 31, 2018.

  1. johnmmf

    johnmmf

    if it is possible so why people choose to quit it?
     
  2. From what i've observed and experienced. Trading gives you quick wealth. Lots of people I know made what they make in 2-3 years in this month alone (attended a trading group this weekend in Dallas)

    But once you make all that money, it's important to diversify into more reduced risk ventures (trade with more hedges/insurance), investments or real estate.

    Btw, Kennedy Sr. made his millions as a trader and before the crash of 1929 liquidated and put everything into real estate.
     
  3. Possible to become rich trading...sure, of course. -- Probable, well not as easily likely. :confused:

    People never quit trading, or any money-making venture, if it truly is a profit machine.
    The people who do quit...quit because of either failure or death, or some other forced reason.

    You should study all of the really, exponentially profitable traders in history. To kind of grasp what they were doing, and their loose strategy and general frame of mind.

    To become "rich" in trading, you have to really embrace risks...because risks opens the door or window to potentially great rewards.
    Once the window or door of opportunity is open...you need the skill to steal the loot inside, the ability to leave unscathed and undetected.

    Most people are basically scared of the word risks.
    To get rich in trading...you have to throw conventional wisdom out the door...and most people here at ET...are conventional wisdom.
    Most people here at ET are happy if they simply outperform the market index by a couple of percent annually consistently....which is laughable performance, if you ask me.
     
    Last edited: Jan 31, 2018
  4. Some people, along the way, discovered that being rich wasn't their ultimate goal.
     
  5. Chris Mac

    Chris Mac

    Wrong. You seem to think trading is about gambling and fast gains.
    No, trading is about work, process, repeatability and psycho.
    If you got a process, why change? Better compound your gain rather that diversify in real estate or whatever after few months.
    If you are really rich (>10 MUSD), Ok then diversify. But if you are starting from nothing, it will take at least a decade of hard work, not months.

    CM
     
  6. just21

    just21

    Kennedy Sr was running pump and dump groups which would be illegal now in stocks. Still going on in crypto though.
     
    d08 likes this.
  7. Wow!
    This is really a bad site to get advise! Coming to conclusion very few folks actually trade and implement enough risk controls in their trading process. Seems like people are using small fraction of their money in trading.

    My friend, once an equities trader risks 70%+ of his net worth in the market, you'll understand what that means. They begin to understand the power of real estate in terms of cross-building equity, leverage and tax deduction of depreciation and how it can be used in conjunction with trading.

    I don't mean to be an arrogant dick. But your profile says investor and trader for 10+ years.
    By that logic if you started off with 10k, 10 years ago and doubled your money trading, shouldn't you be worth at least 10.2M?

    Please see my previous posts on uncorrelated asset classes in trading.
     
    Last edited: Jan 31, 2018
  8. heispark

    heispark

    chance is pretty low... becoming a doctor or lawyer would be easier to become rich I believe...
     
  9. Xela

    Xela


    Because they gradually come to realise, on some level, that their initial expectations were unreasonable ones.
     
    kellys, ih201, 777 and 5 others like this.
  10. DaveV

    DaveV

    Is it possible to become rich by trading? Of course. There are many traders who have become rich.

    Is one likely to become rich by trading? No. Between commissions, slippage, realtime quotes and other fees, Traders start off with the odds against them. Only the very best survive, much less get rich.
     
    #10     Jan 31, 2018
    murray t turtle likes this.