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A Successful Trader


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#11 manuj

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Posted 01 October 2011 - 03:15 PM

Personally, I treat trading as a wealth building exercise...


You're talking about the longer term holding instead of day trading accounts. The strategy for that, of course, is totally different than day trading. Yes, it's a "wealth building" process.

But, even for my SEP IRA and long term portfolios, I don't set my goals like that. I only take one trade at a time. I guess that's why for me "profit protection" is so important. To me, earning $1 is much better than $0 or losing.

It just works out so much better for me to take small increments to get to $1 million as a working class trader than trying to get $1 million all at once.



I totally agree with you that getting large sums of money is a process which involves raking in smaller gains over and over.

I trade the market swings which last from 1-2 days to 2-3 weeks. And since I am a trend follower - I do not or cannot set any goals for my accounts. I picked 25% return because it is a figure that can be achieved reasonably by most traders/investors in most years.

I have tried day trading but from what I found - I could make a better living (and take upon less stress) by going out there and taking up a conventional vocation.

#12 TechMan

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Posted 01 October 2011 - 03:40 PM

I have tried day trading but from what I found - I could make a better living (and take upon less stress) by going out there and taking up a conventional vocation.


For me the stress used to come primarily from holding on to my position too long trying to either maximize the gains or minimize the losses. Since I had stopped doing that, I'm truly enjoying this business.

Really, everyone's different and is trading different asset classes. It's just a matter of finding what works for us. One size doesn't fit all.

#13 CLK

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Posted 01 October 2011 - 05:25 PM

The problem with most people, that earn 50k and even 100k at a day job, just do not have the free cash to put into the market in a way that would properly capitalize their trading account. Most, regardless of how much they make, have already borrowed up to as much as they can afford. So my question is how much does one really need to be ready to daytrade properly ? If it's 30-50k I doubt many people even have that to risk, sure one could save it up in 3-5 years, but I doubt many have the patience to save that long to trade. Many people have left this board over the years that claimed to do well in the market, most likely they lost everything and have no reason to post anymore. Markets change so much it is hard for most people to be able to adapt to it, because of the time involved just figuring out any given cycle of time in the market.

Edited by CLK, 01 October 2011 - 05:32 PM.


#14 DrWu

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Posted 01 October 2011 - 05:54 PM

If it's 30-50k
I doubt many people even have that to risk, sure one could save it up in 3-5 years, but I doubt many have
the patience to save that long to trade.


Best advise I received: Save-up two years of living expenses, then study and practice full-time before risking your trading account.

#15 TechMan

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Posted 01 October 2011 - 09:26 PM

So my question is how much does one really need to be ready to daytrade properly ? If it's 30-50k
I doubt many people even have that to risk, sure one could save it up in 3-5 years, but I doubt many have
the patience to save that long to trade.


At least $50,000, ideally $100,000.

But here's a personal experience…

I've been working on one of the junior members' trading account starting with just $1,000. At first, it felt like swimming with both hands tied behind my back. I got so frustrated that I almost quit. But, once I started making some mental adjustments, things started clicking.

Instead of trading in and out all day, I'd use half of her unused balance to buy protection whenever the signals are about to change. And, instead of buying blocks of 100 option contracts at a time in my own trading account, I'd buy just 2 or 5 contracts for her. It's really killing me going this small and slow. But with patience, some trading skill, money management, and luck, it started getting easier as her account started to grow.

It can be done.

Many people have left this board over the years that claimed to do well in the market,
most likely they lost everything and have no reason to post anymore. Markets change so much
it is hard for most people to be able to adapt to it, because of the time involved just figuring
out any given cycle of time in the market.


Great observation.

The only thing doesn't change is change.

#16 James Quillian

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Posted 01 October 2011 - 09:36 PM

I start every year with the idea I will be satisfied with 12% for the whole year. Any portfolio manager who has a consistent return of just a fraction over the long term average gain of the S&P 500 usually keeps his job. I really don’t know who is a successful trader and who is not. A lot of people make sense, but I never know what their bottom line is.

The term "successful trader" is somehow associated with someone that's rich and famous. And, since most people don't personally know too many people, if any, that are rich and famous, they naturally deduce that there's no such thing as a "successful trader".

To me, a successful trader is a working class person, who's able to earn sufficient income to support himself. It's that simple. They may make, say, $50,000 or $100,000 a year, and they don't go on TV to tell the world about it. Other than their family and friends, no one else in the world knows about them.

Let's say a person's goal is to make $50,000 a year. He can break it down to $960 a week, $190 a day, or $38 per trade, if he makes 5 trades a day on average, to achieve this goal. Given the skill, the experience, the right trading system, and luck, it's not really all that complicated or unachievable.

Most traders fail because they want to hit home run on every trade. Home runs do happen, but it's only because of all the hard work that's put into it. And, the harder we work, the luckier we get.



#17 vitaminm

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Posted 01 October 2011 - 10:15 PM

which stocks do you routinely trade to profit stated weekly amount?
vitaminm

#18 Om_Namah_Shivay

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Posted 01 October 2011 - 10:53 PM

which stocks do you routinely trade to profit stated weekly amount?

My two cents:
Don't trade targets i.e. don't target particular amount or particular target on the scipr u r trading. Just focus one making every trade win for you but how much is decided by markets not you "morons". Who ever think they can treat markets as their fixed deposit and extract a targeted rate, either havent paid their dues to market or havent learnt yet, that you don't treat the mother who is your nurturer (if there is a word like that) or better still raison de etre for your life as an ATM machine.
Respect markets to receive her kindness.

PS: Apologies for sounding all relegious on markets:) . On side note I m atheist, which should say alot about me as I come from land of more than 800mn gods and goddesses :)

Edited by Om_Namah_Shivay, 01 October 2011 - 10:55 PM.

Know the DIFFERENCE between WINNING and WINNINGS; One is KARMA and One is EGO!!!

www.bubbleshort.blogspot.in My Blog with focus on markets and "Act" of trading

#19 TechMan

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Posted 01 October 2011 - 11:09 PM

which stocks do you routinely trade to profit stated weekly amount?


I do several intraday scans during the day and EOD scan with my set of criteria. So, it all depends on whatever show up that meet the criteria. Sometimes, I'd recommend what I thought were good ones here like ORCL after earning and recent HPQ after its internal turmoil. Both of them were "home run" trades for me.

Love trading the earnings with various option strategies. Sometimes I'd put the specific option strategy up, but not too many here seemed interested. So, I don't waste my time posting them anymore.

#20 manuj

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Posted 02 October 2011 - 01:02 AM

On side note I m atheist, which should say alot about me as I come from land of more than 800mn gods and goddesses :)



...and your forum ID is Om_Namah_Shivay?? Something does not add up :rolleyes: