making a living v. getting rich

Discussion in 'Trading' started by marketsurfer, Jun 4, 2003.

  1. Just because you are not doing it doesn't mean it isnt being done... for an experienced scalper, several hundred thou a year is not beyond the realms of expectation :) ... and over the years, it adds up, assuming you don't spend too much... I do agree with your penultimate sentence... moreover, it also boils down to what "rich" means you to... for me, "rich" simply means "freedom"... for others, it means a certain minimum amount of $ in the bank... another thing: I prefer year long consistency as opposed to taking massive risks for massive gains, with the potential of massive downside...
    #21     Jun 4, 2003
  2. prox


    You can pay the bills through daytrading, but you can change your lifestyle through swingtrading...

    Unless someone off the floor atually has a 80-90% system, 1:1 risk/reward that generates 10 trades per day .. then, you outperform everything and everyone.
    #22     Jun 4, 2003
  3. It might be worth doing a financial analysis of your views. Also you might want to read Gary Smith's book.

    You are speaking about a nonlinear process. The implication s of what you say are that people screw up more and more as they go along.
    #23     Jun 4, 2003
  4. I disagree... you can change your lifestyle through either (for better or for worse :D )...
    #24     Jun 4, 2003
  5. You speak my language candleman :D

    Comparing scalpers with position traders, for example, is like comparing an F-16 pilot with a farmer.

    It's possible to make money scalping - However, I think it's the most difficult form of trading (from my own experience). I scalp (or let's rather say momentum trade - not exactly the 'scalping' we talked about in the age of fractions pre '99) myself, it's sort of my main trading style. I got good at it eventually. And I'm saying eventually. It's best to learn on longer timeframes and then reduce the timeframe gradually. That's how I look at it, anyway.

    I guess it's because I'm paranoid about losses. I just don't like seeing a position lose anymore than 5-20c per share, when trading stocks for example. I close out straight away and look for the next run, never looking at my P/L stats. At the end of the day, I will have made money. So, this is what I see as an advantage of scalping - Not many losing days (unless I really get like 20 trades wrong), which looks a lot smoother on my equity curve.
    Besides, my exposure to possible market events is much lower. I simply like to be able to sleep at night.

    How about you, candletrader, what's your main style? Do you scalp? Are there any nasdaq equity scalpers around here?

    #25     Jun 4, 2003
  6. I have a completely different definition of rich. I make less than 2k a month, but I have my own place, my own car, anything I really want, and I don't work. (I run a small biz that is profitable and am just starting to work on my trading). My day consists of working 30mins and then going skiing. I am moving to a ski resort in a few weeks. By your guys definition I am broke-ass poor, but I feel rich.
    #26     Jun 4, 2003
  7. And 10 seconds after you get your shares, the stock is halted,
    and opens 50% lower the next day :D



    #27     Jun 4, 2003
  8. ... Sounds scary axeman... Never looked at it that way...
    Ever happened to you? Ever happened to anybody here?

    What do other scalpers think?

    #28     Jun 4, 2003
  9. It has never happened to me, but it's a real risk I consider,
    and I have seen stocks that I scalp being halted on a date
    I was not trading them.

    Tony Oz mentioned in one of his books that because of
    similar isisues (opening 50% lower the next day after horrible
    news for example ), he never uses more than 25% of his capital
    on any one stock, no matter how tight his stop is.

    This makes sense.
    I think the same should be considered even when scalping
    a stock for a few seconds. You could be that one unlucky
    trader that gets caught at just the right time, and you KNOW
    the SPEC isn't gonna let you out of that trade ( for NYSE) when he is
    trying to cover his ass during a mad rush.



    #29     Jun 4, 2003
  10. I am in total agreement with your sentiments on this... although I make more than you, my profits are not how I measure my wealth... I measure my wealth in terms of my freedom from corporate slavery... I am answerable only to myself, and I love it...
    #30     Jun 4, 2003