Since I've recently started looking to get back into the business, I'd thought I'd ask this question now. Q: Year after year, do you think it's getting harder to make money in daytrading at a prop firm? I mean from 2001 - 2006 specifically. Thanks for your vote.
Well I just started day trading...(still learning) but I love it! It can be extremely profitable and you eliminate some of those nasty overnight trades. That's not to say that having a less involved approach to the market isn't profitable...it is...but I like the control you have as a daytrader.
KS, I can see you're excited about your new career and I wish you much success, but how is your post relevant here? You'll quickly find that traders don't hold back any punches with their remarks. Nothing personal.
Depends on what type of trading style you prefer. Momentum did well during the early 2000s... it stopped working and I'm hearing stories the old momo traders are back... Scalpers did well for a while but I haven't heard anything about them coming back... Rebate trading was around around 1-2 years ago... I don't hear anything about them too... They should be around though. Arbitrage traders are doing consistantly... Anyways... from stories I hear... Momo is back... Harder??? Not really... it's all the same... largely depends on you...
At 11:18am we have 12 out of 24 - 50% that are leaving the business. It'll be interesting to see what the ratios are when we have some more data.
Allow me to put this issue into perspective as only I can: When I first started trading in 1996, the market was like a 16 year old girl; Not quite ripe yet for the picking, but one could tell she was <i>almost</i> there... right on the verge of something great. 1998-2000 was the Golden Age of Trading. The market was a smoking hot 18-20 babe during those magical years- All you had to do was squeeze her supple young ass and piles of money would squirt out all over the place. It was truly amazing. 2001-2004? Forget about it. The market was a dried up old hag on medicare. I wouldn't touch her with <i>your</i> money. 2005-2006: Well, she's not a dried up old geezer anymore. That Oil of Olay crap must do <i>something</i>, because she seems do-able again, to some degree. I'd peg her age at around 30-35 these days. Past her prime, but worth a second look if you have nothing else going on.
once volatility/avg true range of markets dry up- easier to move on to other instruments that are in play- after us equitys contracted in early 2000's should have moved onto the pop in vol's in fx (or even into real estate assets) then onto commodity run in metals & energies it seems vols getting better again in us equity market after it cycled out shakin out the weak players. its always easier if trading in high volatility/high liquidity markets