95% of people seek mediocrity/comfort. Only 5% of people succeed in doing anything really challenging beyond going to school, holding a job, or raising their kids. Only 5% that set out to: get in shape, play a musical instrument, start a business, learn a foreign language, sail across the ocean, write a book, make a film, host a web site with lots of visitors, surf 20' Pipeline, hanglide, etc. ever succeed. Why should trading be any different? Traders that make out well over the long haul are absolutely committed, they have an unconditional persistence. Most 'active traders' don't even have a written trading plan, like someone mentioned, the bar is very low of those considered to have tried trading & failed.
He said he makes 50k a month. The best hedge funds make 10-20% a year on their best years do I hope he at least has 6m aum....
No, MarketAddict typed..."In a good month, I can make 50k.." That does not equal 50k every month. In a GOOD month I can make $5K. In bad months I might make $600. Or lose $2K. And now you are going on about percentage returns. It is all relative. Oi!
Harvard acceptance rate is 5.4%. How many people here applied to Harvard and thought they would be accepted? But yet they think they will be a profitable trader. But it's less than that since they expect trading will lead to financial independence which is far fewer than the 5% that just make it as a trader.
Yeah, people are in a wrong business if they are making a meager profit of $20,000 a year considering the risk of trading liquid asset is astronomical as Warren Buffet once said you can lose your shirt in the bat of an eye. There are other much less risky business model like reselling a product. You can make almost 30% a month by doing wholesale almost no risk. In couple years, you can compound the wholesale business from a starting capital of $10,000 to several million dollars almost guarantee by reinvest the profit.
@Euler09 dont waste your time arguing with these people. There are very few successful traders on this forum if any. I have posted another thread to provide proof just to prove this point. But that does not mean it is not possible. You can make a lot more than hedge funds percentage wise with a small account. Just like a motorcycle can beat an 18 wheeler on the interstate in traffic. Although this takes a lot of hardwork, discipline, supplemental income in the initial years just like getting a phd. The benefit is once you master this trade it can be scaled by increasing position size. And ignore @Overnight and his 20K profits. He is someone who drunk posts on this forum, I have seen him do it numerous times plus I have caught him tell lies. Dont waste your time arguing with these riffraff. Go out and put in the effort and you will be a successful trader in due time. I am talking atleast 300k a year.