You should expect it to take a year to get good at trading. I've made 7 figures in my first year of prop trading, but i came in with 4 years experience of watching the market every day and actively investing in my online accounts. I've done little but ponder the markets for the last 5 years. After about 12 months you should be able to get a grasp on how all the various sectors and stocks relate to one another. You will know which stocks are bad to trade and what works and doesn't. Prop trading insn't for every, but if you were like me and weren't likely to make over 80k in the REAL world, i would definitely give it a shot. Most don't cut it so if you can do 6 figures outside of trading, probably best to stick with that.
A lot of traders on this site will probably spam me to death and call me the anti-Christ, but I've got to say it for the sake of you newbies: It's very difficult to make a "modest" living (meaning $40-75K) a year in this market. Maybe 90% of newbies won't even see minimum wage for the first year and maybe hit $30K a year for the next few years. If you're making significantly more than $35K now, then DO NOT throw it away and go into day trading.
Another route you could take is to live on the west coast, under Pacific Time. This would allow you to wake up before the market opens at 6:30am, trade the open, and the first part of the day. (many of the best moves are during this time), then go to your 9-5 job during the day and earn a living. Sure it makes for a long day..but if you are really dedicated to it, the time will be worth it. I know many people that have done this, and were able to become good traders while not feeling the pressure of an income. Sure, it will take longer to learn to trade...but it might be a much better alternative than the "6 months's to make or break it" setup. cas
Since you want to trade, please don't listen to the whinings and discouragements of some on these boards. The fact is, trading is the EASIEST job I've ever had, as well as the most lucrative. I had a negative net worth when I started in 1998. Today, I could quit and pretty much live off the interest and dividends on my investments. (Damn, I wish rates would skyrocket!) I started with $25k from a credit card line. My only trading experience was consistently losing $ in the options market. It sounds like you have found a good home. Stick to low risk strategies, and make sure you have low costs. Good luck!
well i won't get into details too much. I worked for Morgan Stanley and Robbie Stevens in SF and I tried to moonlight trade. It not that easy. At least it was very hard for me to do. Maybe because my jobs were quite taxing and detailed long hours. Anyway if someone wants to do that e-mail me and I will be glad to get into the west coast details for you...
Husky02...I started with a prop firm April 01 with 50% split on profits. I never really had a losing month trading ....but desk fees etc. never really got me over the hump. It took me a good 9 months to become profitable with take home with some excellent training. I have now been on my own for the last 4 months and have taken home net 60K. To answer your question...If you can learn without putting up your own money...I highly recomend it. You learn whether or not you have the aptitude to be a successful trader on someone elses dime. And when you are ready to go on your own.....there isn't a better job in the world.
andrasnm, Yes, I agree that it is not easy...but I know 5 people that it worked for. Always something to consider. I put in 14hrs days for years and years....was it worth it.....you bet. cas
Yeah, I think it's probably accurate to say that the vast majority of daytraders are making min wages or less. Though no one would admit that. And a decent chunk after some experience(significiant experiences of months to 1-2yrs) make a "modest" living. And a few make 6figures. And the supertop make 7figure? I mean if it was that "easy" everyone would quit their day job and trade prop and make 6figures , no boss to answer with, no corporate politics, and go home at 1pm if you are on the west coast. The truth is it's NOT. The market is ruthless. The sheeps will be eaten by the wolves. That's the way capital markets work. The thing is this. The market will ALWAYS be there. It's best to do a LOT of homework: 1) research 2) maybe even build your own systems 3) study various sectors etc. And even papertrade and try to be "honest" with yourself in your papertrades to be as realistic as possible(but it will never be like the real thing). Or better yet, open a small account at IB and trade a little to practice your strategy,etc. And I think realistically, it should take at minimum 6months, but probably more like 1-2yrs to be sufficiently good and consistently. So, the more money you have on RESERVE the better it is. Like they say, never trade with "scared" money. -trader99