I'd also like to note that a solid half of the people on this board aren't even close to having a CHANCE. It never ceases to amaze me how many people on here don't understand things like prop leverage and trading income. A good trader can put up 20k and pull out 50-100k per month from the market. I can't help but chuckle when someone on this board talks about % return on equity. Trading is about INCOME - pulling money out of the market each and every month. Prop trading entails huge leverage. Also, if you dont use Hammer, Anvil, Redi+, Schonex or something similar - you're toast. Again, so many people on here refer to IB and all that crap - CLEARLY amatuers. Second tier, retail platforms are not even close to the level of speed you need to execute short-term trades.
believe it or not, I have actually seen it work for some, just like you described. really! read my other quote regarding the "edge" that some had..., such as those who were at Broadway Trading and those who's systems were tied directly into the ECN's.... most of those traders lost it as fast as it came, as they had no appreciation for what it took to get there or how to remain there....
Its more a Zen thing. The truly successful are humbled every day by the market, work hard at this "trading thing" and dont talk about money. Until you are humble and stand in awe of how much money is lost by ego, you will not be ready to trade. For some, it is years, others never learn. I know one guy who only trades options based on what CNBC says. His win/loss ratio is about 10/90, but the winners so eclipse what he losses, its a living.
It has taken me 4 years. I can give you an example of other traders I know. One guy who owns a pro firm took only 6 months and only has a losing day every 2 years. Another who was Schonfelds top trader took 5 years of loosing money to make it. There is also another guy who took 10 years but he was lucky to be on salary as a NYSE specialist. On average to really know what you are doing it takes about 5 years. Some find an edge that works in 1 type of market and they get away with it for a few years then blow up. So 5 years seems to be safeâ¦
========= Small fill; trade small,[not ''huge amounts'' ]its probably where most of us messed up/blew up. Several years, good thing I am debt free except a small mortgage; actually'' 1-2 -10 years ''seems like a a straight accurate answer. Probably the quickest route to failure is; trying to get rich quick in markets/size too big. Actually I was so consistant for many months,like bitstream figured might make it; consistantly LOST money, much more than SPX/SPY did .
murray t turtle, I cannot but, agree on blowing out accounts. My friend blew out most of a $380 K account due to some boneheaded trades (large ones too!!!). She was less prepared for trading stocks and options than I was but, she had too much courage---the foolish kind!!! Told her to put the bulk of her funds in the bank and just leave $10 K to trade options but, unknown to me, put it back into her broker account and traded of all things----a couple of bad stocks. Unfortunately, it is too late for her as she did not listen to me. Started trading options last year, made a lot of mistakes still and somehow managed to still make $5000. That is 24 trades, 14 winners, 10 losers and win/loss ratio of 1.57. I know I have a long way to go so, just continuing my education and studying and trying to absorb as much as I can. Started this intense study last April 2005 and hope to be a much better trader in 2 years time. Thanks everyone too for your feedback.
I agree with the statment about many ppl on here appear to do better than what they admit to performing. Although, there are some here who make consistant profits. And if (when ) I fall into that category, I'm sure I would still have time to "relax" and continue reading and contributing to ET. You make it sound like every successful trader has no free time. In regards to the initial question. I would say, as far as trading equities is concerned, it can range from 6 months - 5 years. It mostly depends on how you approach it and if you do all your homework. RT
Have you ever thought maybe the 'real' successful traders don't post here because they need poor hapless rowdies like you to feed off of?
hey scalping nickel.... relax a bit.....do you think big traders have time to troll these posts looking for someone to flame on? Answer is no..... So logic follows that you are no good....or in your words you are clearly not a: " 'real' successful trader" Ouch the truth stings....let people post and dont be such a wanker. Let people ask questions...this is after all a site to learn about trading.....The markets are rough enough...spiteful fellow traders are not a great help...really
This is about 90% nonsense. "Good traders" are building a permanent hedging business... One that will be here 10 and 20 years from now... And building the technologcal and administrative infrastructure that makes a such a business possible. Lone, fringe fly-by-nighters "pull" money out of the market... And are competing head-to-head with leading edge Wall Street trading desks... And a few 1000 "Bright Bros" type day zombies and a few cute, little zombettes. Nice strategy, that. The guy ** assumes ** all successful traders are short-term momentum, swing traders. Actually, this methodology probably comprises < 5% of all trading... And 9 of 10 practitioners are just kindly putting their broker's kids through college. With IB one can build a safe, stable, high volume, automated heging operation that does 30-40% annually. But then you wouldn't want that... Doesn't fit into your narrow window on the world. rm+