we all know about money management and grinding out profits day in and day out--- you will make a good living at this game with skill BUT one will never get rich without taking extraordinary risk. this is ofcourse if you are not already wealthy when you started. any thoughts ?? best, surfer
I hate to point out the obvious .... but "rich" is subjective. Can you be more specific on (1) your point of reference for "rich" (2) the time limit to achieve that level of wealth? (3) the starting point to achieve that level of wealth?
LOL candle that's a weird analogy - Can I see that mansion? RE Whether you have to take extraordinary risks to get rich -Bullshit! The more risk you take, the more likely it is that an unfavorable excursion (which will eventually come) sends you down the abyss. In the long run, risk (probability of adversion) becomes more likely - Meaning, the longer you trade, the more likely it is (theoretically) that you have a large loss / large series of losses. Never forget that. Never rest on your systems - Constantly re-evaluate / improve to counteract that probability! It's like gambling systems - In the long run the casino will (theoretically) win - However, if you keep at it with wise money management, you can build up a considerable stash and defy this relative fact. Basically, the less risk you take, the faster you will in fact get rich! Why? Because if your system/strategy has low risk/drawdowns, you can leverage more! That's the way to go. So the way to go is to work on better and better (lower risk) trading systems while increasing your leverage. See, if your max dd risk is 0.2%, then 10X leverage is OK! Anybody disagree? Of course you have to be either short-term trading or heavily diversifying in order to do this. Besides, I actually wonder why people are so impatient about getting "rich"... What's so cool about being rich? American dream, huh? Fast cars & beach houses? Jesus. Doesn't make you happy! Doing what you love doing and being with who you love being with makes you happy. Besides, if you're a reasonably good sort of trader, you should be able to make >5% per month, which will turn $100k into $1 million in a little less than 4 years... Is that too slow? Can't help you man. I'm happy being a trader, I have a life, a great sportscar, a great beachhouse ("Riverside", with the river on one side and the beach on the other - rented btw), great friends and I'm worth a coupla hundred K (now). - Particularly if you add my gemstone collection - I'm a Jewellery Designer as well - To diversify business risk and get a break from trading Seeing that a few years ago I had nothing, that's OK by me. I'm only 22 after all! I was planning to be financially free by the time I'm 25. I'm pretty confident I'll make it, too.... Have fun and Good Luck! ~Scientist P.S: If you really want to get rich - Stop trading and sell trading knowledge, "how to trade" ebooks etc - Rather boring, but will make you rich a lot faster P.P.S: Find a picture of one of my cars below - with a certain girl modelling my jewellery So you know I'm not b-shiting ya
As a daytrader? My opinion is "forget it". Unless you stack on some pretty thick size while the going is good -- ie, while your method is showing positive results -- you're not gonna get rich running this fool's errand. Now, whether you call that "extraordinary" risk is debatable. Couldn't you come up with more concise language than "rich" and "extraordinary"? Edit. My own personal view is that, paradoxically, if your only purpose in trading is to get rich then you probably won't. Trade with an eye to trading better, and you probably will.
1. whatever it means to you--- i chose this word since it is not absolute and i am interested in your opinions not my definition. 2. you will be young enough to still enjoy it totally 3. dependent on your answer to #1 allow me to rephrase--- can one reach their definition of "rich" monetarily by trading without taking extraordinary risks ? best, surfer
Anything wrong with being a day trader?? True, it's all a matter of perception. Personally, to me "extraordinary" risk means 2% of equity at stake. Being "rich", by definition of "Forbes Magazine" would mean having a net worth of >US$10 mio and a net income of >US$1mio per annum. Absolutely agree. Doesn't only apply for trading. Applies for any job.... Happy Wealth-building ~Scientist