Hello all, I'm currently employed at an I-bank and looking to start trading full time which can't be done given my current job. I've always been a fundamental based investor (ala buffett) and have made some good trades using value strategy. However, as most traders learn, fundamentals lack on risk management and I got burned a feel times. Recently I read Market Wizards plus a few other technical indicator books since and I believe with high risk management tools and a blend of tech/fundamental approach I can become a successful full time trader. Has anyone made this move before and can give me some advice? I heard of Bright Trading where you can trade their own money, but I'd like to get some feedback about going on your own before contacting them. Thank you.
Fundamental analysis has almost no value if you want to trade for a living. Read up on the proposed transaction tax before you quit your day job. And even if the tax doesn't pass I would not recommend trading for a living and I've been doing it 10 years. If I had the chance to do it over again I'd pick a different profession.
its kinda like hustlin on the street corner, but with more transaction costs and regulation. Always trying to score your next fix or cover a square meal.
Sacrifice a year of your life by studying the charactersitics of price action. Think mad scientist. I had around 95 pages on microsoft word of personal analysis and study of the markets before I ever put a penny into the markets. The two biggest reasons traders fail. 1. They have no ability whatsoever of getting a directional bias by looking at the big picture. 2. They give away money to the markets after about a week of personal deception and consider the game is rigged after blowing out.
pro traders trade in ways that have nothing to do with fundamentals analysis, news and eaRning reports. Their trades are about probability to make money, in other words you must find your edge, if you do not have an edge then you are a gambler. To trade full time, you must have money YOU CAN AFFORD TO LOSE. Do not trade with money you need for living exPENSES. You must have time, you do this or you don't. You must first learn how to stay alive, only then you can think about making money. If you are able NOT to lose your money for about 1 year, you'll have a future. 9 traders out of 10 lose money.
you have about as much chance in succeeding as a black jack counter turning pro or playing poker for a living. Think twice about it...better off as an active investor with some income. Trade ETFs, mutual funds and keep that job. Finding a new one will be a bitch....
You don't trade 'their' money. You trade YOUR money and use theirs for leverage. I'd say stay in your job or look for another but in trading right now you have zero chance of making it.
I disagree with many of the posters. I, too, thought that after experiencing "blown" accounts at some prop firms that I couldn't make it but I then found a smaller prop firm and have received good coaching and am now consistently making a few hundred a day only trading about 5-7K shares which is by all means a very good track record. It depends on who coaches you. Good Luck
Thank you all. I wouldn't be entertaining the idea if I wasn't confident in my trading abilities. Yes, tons of homework is necessary and just like in any other field or sports, the top 1% (the extra hard working guys) succeed and the rest fail. But my strategy for picking trades has been successful and my risk control (buying with stops already in place and not risking more than 5% of my capital in any one strategy) has allowed me to see my winners outrun my losses by a decent margin. But anyways I will stay on the sidelines for a while until I can build some more capital, fine tune my strategies and do some more serious risk analysis to see what I can live with and how much Im can afford to loose.