Trader Career Transition

how the fuck would I know?

 

I think that modeling longer time frames and designing your trading system and position management for longer trade holding time frames is a key tenet to simultaneously holding a day job and getting much more aggressive with your trading. Sounds obvious, is obvious, but IMHO longer time frames are a key to independent or individual speculative success.

I've come to a pretty firm conclusion that over the past several years higher frequency manual trading is just too tough for most mortals, and in terms of making a trading career transition personally IMHO it is the most difficult route. I say that knowing full well that there are a number of traders who indeed are successful at it.

 

I think this quote is something that many ET members just don't understand. There's so much "This is the right way" or "No that way can never work". The fact is what won't work for most may work really well for some and vice versa etc. etc.

Thanks for pointing this out bone.

 

As much as I despise the use of generalizations and trading, in terms of my client work there is one very notable tenet - that clients who diligently paper trade under my doting tutelage for a protracted period of time (say 12-14 months) always seem to do well in the live markets. The key point being protracted period of time.

 

Over the years, the traders that I see do really well are very level-headed from an emotional standpoint. You get there by starting out taking very low risk, and giving yourself enough time to perfect your craft and become consistent. A very good trading system helps with the consistent part. Consistency breeds confidence. The really profitable traders are quite pleased with their choice of profession - they love it. But it's not a dopamine high or an emotional roller coaster. The great ones grind out income in a very workman-like fashion.

 

I had a client send me this link today from Bloomberg News about an individual trader who put on a Eurodollar Spread to very good effect. Like FU money good effect:

https://www.bloomberg.com/news/arti...-20-million-profit-on-hawkish-fed-options-bet

 

It was a single futures put fly, not really a spread bet in your definition of that word

 

Agreed. And I've seen sexier trades that didn't require so much capital to put on.

 

I have a client who has been training with me for 15 months who now wants to go live (great paper trading metrics). He's keeping his day job (smart) and will ramp things up progressively as capital accumulation and risk warrants.

 

From knowing nothing about spreads to becoming quite competent and eager to trade live - takes my clients about 12-15 months.