I have been trading full time for just over 1 1/2 years. And am able to make an excellent living. My focus is on being profitable every single day. In reality, I find myself profitable 9 out of 10 days. My suggestion to a new trader is to find a model that works. Once you have this, the rest is easy.
I switched between full time, then part time, then back to working a regular job, and then back to trading full time. I'm "on break" right now waiting for some programming to come through. I can say that, starting with under 10k, you want to reduce your overhead expenses as much as possible. I'm not just talking about commissions at the brokerage. That is minimal for self-directed trader. These days commissions are very comparable, just a matter of choosing a charting/execution platform that fits well with your trading personality. You're most likely doing this out of your house/apt, so your biggest expense outside of your initial startup capital is your rent/utilities. One advantage of electronic speculative trading is that it is very portable. With a laptop, an internet connection, and a cell phone, you're in the game. You can trade with at little as a a pentium 4 2.0ghz or faster laptop, although dual core or core2duo is recommended if you can afford it. I think that, especially if you are single, you can expat to another country that will still allow you plenty of time to do your trading, but drastically reduce your living expenses. Places like Singapore, Thailand, Cambodia come to mind. $150-400 usd a month can give you enough for food, living in a studio apt with high sped internet, and not to mention locals of the opposite sex that will.......enjoy foreign men's companionship. Treat it as a business. Give yourself breathing room. You may make it big financially quickly, but most likely it is not going to happen unless you have a super edge. Of course, the only way you'll know that is with live, real forward trading account. The next best thing is a live, forward testing demo account. Not hear to kill your dream, but give yourself the space and time to develop your dream. That's where reducing your overhead as much as possible comes in. So you can maximize letting your profits run. And not be pressured into either paying the rent or making a trade, losing, and then putting yourself through an endless self-judegment cycle "why didn't i just get out". The flip side to the coin is that, as with any business, comes risk and you must be willing to sacrifice some or all of your existing resources for the potential gain of making it back and them some. Another advantage of going overseas is that you will have the opportunity to meet other expats, both rich and those on retirement checks, and limited income. You will be exposed to fresh ideas from the other expats (and locals) which will in turn expand your trading even further. Automate as much of your strategy as possible. Use an always-on VPS that you can leave on without worry of internet connection dropping or power going out or computer crashing, etc ( e.g. www.commercialnetworkservices.com ). You can use your laptop in the mean time if you cannot afford vps Emotions are real. If your heart or gut feeling is telling you to get in or get out, it's 100% right at that time. Note that this is different than false images appearing real (fear). Dont be stuck to any particular instrument. if you have lower starting amounts, outside of trading options, consider forex spot at a reputable broker outside USA that can give you high leverage and micro lot (1000 unit of base currency). The CFTC attempted to prevent this, but those of us with enough awareness will figure out appropriate alternatives. Don't give up. "Practice makes the master. But it is action that makes the difference" An audio copy of The 4 Agreements is essential. edit: I had one good advantage, and that's i had another source of fairly regular income from other projects, so I wasn't solely worried about whether i would eat or not. When you are in survival mode, it's harder to think clearly, because you tend to make decisions based on fear. I guess being initiated into death also has a way of freeing your mind and fears and just living 100% in the moment, just like the rest of nature. In the end, just keep practicing and doing your best until you achieve the desired results.
Been swing trading 10+yrs,, 2years full time, only source of income. tip#1: have sufficient capital Tip#2-99. See tip #1
Sorry P2, but I seriously doubt your telling the truth. You would be the only trader in the world who throws over 100% their account into wild low priced stocks and doesn't blow out their accounts. No one can easily earn 30% per month on their account, that's just newbie.
It was listed in the ET hall of fame. Threads that were thought to have been useful. I found it interesting and decided to add my comments to it. I'm sure others found it useful also.