When job creation and general satisfaction at the workplace is all-time low, I am getting questions at an increasing rate about trading and how that compares to other businesses. The major difference between a job and running your own business is the attitude one employs in regards of the workplace chores. Most employers consider their employees a means to an end, a necessary but replaceable component to achieve financial success and independence. This feeling of cost versus rewards are always present at the workplace. In the business of trading one can be his or hers master without consumers and without the need to hire many employees. This is why I always considered trading the best business there is. If you have couple of restaurants you must consider your expansion tactics and financing very carefully. If you are a trader and successful at that your expansion can be as easy as placing a zero at the end of your trade size and you multiplied your business tenfold. Even as a trader who takes on customers monies, you do not need your costumers as much as they need you when things are going your way. Any other customer oriented business lives or dies by the whims of their customers. Not in trading - when(and if) you make 20-30 percent consistently for your clientâs year in year out. Do not get me wrong...trading as a business is far from easy, but that applies to ANY new business. The survival rate of a trading business is not less than a new restaurant or shop privided you start out with the same $$$. Any retail business you are almost guaranteed to lose or break even for a 1-2 years. In trading you can turn profit after 3-6 months. I teach people how to succeed in the business of trading and my goal is to make you a success. Many people ask me why I bother teaching and writing. It is a good question albeit a little intrusive Having this marketing business takes 20 hours a week and trading/research takes the other 20 - I still work less than most working folks.... My business model as a trader is that I trade long/intermediate term and always have cash-flow from other sources. In short of having a trust fund I must have a related but risk free business. So there.
It will take a bit longer than 3-6 months to become "consistently" successful as a trader... more like 3 to 5 years. There is much to learn and experience is necessary and invaluable. Still, this time frame is in line with--or even shorter than other very rewarding professions.
If course for the most part you are correct. I however know a trader who was profitable from second month. Actually when I traded at ETG we had quite a few traders were making money from early on!! This guy scalped exchange traded bond funds on the redi and he made 50-60k a month from almost the get go. Of course... decimalization - decimated these types of traders. Pun intended. P.S back then Kanter only took 30 percent from him and he paid $1500 desk fee by Kanter backing him for $500,000 in his account. -Andras
andrasm....you make an interesting point.... decimalization has changed the entire trading game intraday totally. i do not know anyone left in the game who is using "old" style strategies..... nice thread you started.... keep it up....
You cannot count the glory years of trading as anything. A lot of those "consistent" traders nowday cannot make money. I would say it takes a year plus to become profitable.
So, you're an "educator" now huh? Well, not surprising then that there was nary a "con" mentioned. The honest truth is that the entire notion of "trading as a business" or trading as a sole source of income is as big as a "con" as you can get. Come on now andrasnm, you've even pretty much said the same thing on here yourself. Profitable in 3-6 months. Man, that entire sentence is complete baloney. How are you going to determine whether somone has "become profitable"? A week's worth of profit? A month? A new gleam in the eye? Honestly now, do you feel good about yourself selling that "just become profitable and then you've got it made for life" BS? When you know very well it's not true?
Just don't get involved with a untrustworthy partner as I did..turned out guy was not worth it...I sensed it but needed the income too much as he was the lever to the money raising... 6 months and 29% later ..business is done..know who you get into bed with..... Anyone hiring..cause I am on my own today? Thanks and Best, david
Specul8tr I didn't think you had it in you !!!!! Bravo Bravo Bravo Although I still think your attitude stinks this post was excellent..
I don't know how many ways to say it.... In 92 it was possible to be profitable in a month. Now you need to do things different, that's where I come in. You can trade part time and be profitable and be consistent with out DT chatrooms and real time quotes just think outside the BOX! I am a systems trader and a computer guy for 20+ years. TRading was my hobby, obsession and vice earlier. This website is mostly wanna be's and losers who do not listen and unable to change and move on. and I do not say this lightly. Observe my membership I have been around here since the dawn of times (before the crash). I visit less and less lately since I am busy and the company is not so great. Telling me that "educating" is a scam and I want to bait people into trading business as a con would hurt if it did not come from you guys....