Trading for a Low-Paying Living

Robert Green, a well-known accountant for traders, notes in the new (just got it today) September edition of ACTIVE TRADER magazine that (1) 64 % of the 1000 or so mark-to-market traders (trading for a living) he deals with LOST money in 2004; and (2) of those 36 % who made a profit, only 11% earned 50K or more. In other words, less than four percent actually made a real living (50K is not that much of a living, really).

Other than "Yipes!!," any thoughts or comments?

 

he should know.

 

I read somewhere that

Only 4-5 % of the SAG ( actors )
membership earn more than $50,000 per year

hey maybe your next bartender or waiter will
be a trader on the side

 

Hi:

There have been plenty of posts about this subject.

The unpleasant truth is that retail traders generally lack skills, education, discipline and capital. Couple that with poor risk management, and lack of judgement, and you have a train wreck waiting to happen.

Successful traders (Acrary, Aaron, No_pm, Lescor, Spydertrader, Tripack, et al) have drifted through offering good advice, and in some instances viable systems. In general, they are ignored or ridiculed. Use the search function to read the posts. Pretty easy to see where the parade is going.

Thats about it

Steve

 

How do you know whether they're successful traders or not? Have you seen their audited brokerage statements?

 

Well written Remiraz. Also there are successful traders who consistently make over 15% return on assets, but do not have sufficient assets (buying power) in order to make the magical $50,000.

Is a trader who made $49,999 on a $10,000 account an unsuccessful trader?

Or a trader who made $49,999 on a $150,000 account?

 

Does green have any stats on swing traders.

 

Remiraz:

I was originally trained as a mechanical engineer. Upon meeting another engineer, we do not ask to see each others credentials. Because we share similar training and experience, during the course of a 15 minute discussion, we can quickly determine our standing within that profession. After eleven years working in the markets I find that the same is true of professional traders.

I have seen the work records of several of the gentlemen I mentioned. Aaron Schindler manages a public fund. I believe he could be contacted at www.schindlertrading.com. Others (like myself) trade private accounts and are not obligated to make their trading records public. In some cases I have been to their homes and enjoyed their hospitality. I would call them successful professionals.

In contrast, I don't know you at all. Judging by your posts, I would guess that you are a retail trader who has not obtained professional training. If you have the background to evaluate the information, you might benefit from reading those posts.

Steve

 

That pretty much sums it up.

 

Those numbers sound high, but I think they are accurate and I am not surprised since those are probably professional traders at firms who have a much higher suvivership bias then the typical person sitting at home in a bathrobe trying to make a living trading $50k (scared money) through say IB.

nitro