Average salary for a stock trader in Australia
- Thread starter blaz0430
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Define stock trader ? Fund manager or a plumber who buys BHP and ANZ and spends once a month checking the price ? Does buying a share actively makes you a stock trader or do you have to be fulltime in the market as a profession ?
Let's say the "average" is $20k (fund managers who makes $500k and lots of small retail investors who loses $5k). How does this matter as there are people who trades millions and people who puts $1k in stocks that equates to this "average" figure.
Let's say the "average" is $20k (fund managers who makes $500k and lots of small retail investors who loses $5k). How does this matter as there are people who trades millions and people who puts $1k in stocks that equates to this "average" figure.
skc
Goldmember
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No one can.. such figure does not exist and even if it does, it'd be incomplete and totally useless for you to make any decision upon.
Also, the use of the word "salary" is really quite far removed from the reality of most traders (except may be those who are employed by institutions).
The average salary for a stock trader in Australia is impossible to determine.
To arrive at a meaningful figure one would have to interview a very large number of traders and ask them to state their true income truthfully.
Human nature, being what it is, means that hardly anyone will tell you the truth. Some will greatly overstate their income just to brag, while others may greatly understate their income for fear the taxman might find out that they had not declared all their income.
I personally know some traders who are doing extremely well, year after year, but they still won't tell me the actual figures. However, from their lifestyle (mansions, expensive cars, extravagant overseas holidays etc.) one can see that they must be making millions.
I also know some who regularly blow up their accounts, but even that fact doesn't allow me to arrive at a meaningful figure for an average salary.
To arrive at a meaningful figure one would have to interview a very large number of traders and ask them to state their true income truthfully.
Human nature, being what it is, means that hardly anyone will tell you the truth. Some will greatly overstate their income just to brag, while others may greatly understate their income for fear the taxman might find out that they had not declared all their income.
I personally know some traders who are doing extremely well, year after year, but they still won't tell me the actual figures. However, from their lifestyle (mansions, expensive cars, extravagant overseas holidays etc.) one can see that they must be making millions.
I also know some who regularly blow up their accounts, but even that fact doesn't allow me to arrive at a meaningful figure for an average salary.
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Two-fiddy
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I'll Ro Sham Bo you for it!
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Since it appears that no one else could do better than a stupid smart remark. Which were for the most part utterly wrong. You can get an accurate average for anything that has a value set.
I have tried to find the answer for you as I had the same question. I got 84K as the median salary from this site http://www.payscale.com/research/AU/Job=Trader,_Commodities/Salary.
Sorry I didn't find this thread for several years but I only jus had the desire to know.
CanOz
Home runs feel good, but base hits pay bills!
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How the bloody h e double hockey sticks would they know? It would depend on so many things that as Skyquake said, the average would be useless. Imagine one guy that has a daily risk limit of 50k and takes 75% of that, but yet another who has a 1k daily risk and takes 50% of it...wtf??
So you get an average of 84k, does that make someone feel better?
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Well, looks like I'm **somewhere** within 1 standard deviation of the mean
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Both the big brokerages and the ATO would know the answer to your question. To get the answer you'd probably need connections.
There would be a big variation, obviously, with most losing.
Whenever I meet an small business accountant, I ask him if he has any traders on his books. Most say "ummmm... yeh I used to have one guy". So it's not a common job, and you probably need to be in the top 5-10% to make a living.
There would be a big variation, obviously, with most losing.
Whenever I meet an small business accountant, I ask him if he has any traders on his books. Most say "ummmm... yeh I used to have one guy". So it's not a common job, and you probably need to be in the top 5-10% to make a living.
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it starts with the amount you have available to invest/use to invest, the more capital the larger the positions you can take, and the higher the profits (or losses), thus "salary" from drawing on your account
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To calculate economic gains only
Equivalent salary
=
(Capital*(Risk adjusted return-Passive portfolio return))
___________________________________________
Equivalent time spent trading
Examples
$50,000 and 1% above market = $500 P.A
$50,000 and 20% above market = $10,000 P.A
$1,000,000 and 1% above market = $ 10,000P.A
$1,000,000 and 20% above market = $200,000 P.A
Minimum wage+externalities ~ $20 ph @ 40 hr work week ~ $40,000 P.A
Better job ~$40 ph ~ $80,000 P.A
Single parent on centrelink one child
$32,460.48
Single parent on centrelink two children
$37,305.32
Single parent,with 4 kids, unemployed
$47,511.88
Household with 4 kids, both parents unemployed
$53,234.48 + externalities
https://www.centrelink.gov.au/RateEstimatorsWeb/cre.do
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I dont think this can be answered easily if at all...
I trade with 23 other Currency Traders on a Private Forum where we all analyse and share information, but even so we are all different in our trading methods and have different results all the time.
I also know that some of our members hardly make any money while others coin it big time. If you have a look at "Investors Underground" on Youtube, for example, you will find a couple of their members making hundreds of thousands in a year.
How long is a piece of string? As long as you want it to be....
I trade with 23 other Currency Traders on a Private Forum where we all analyse and share information, but even so we are all different in our trading methods and have different results all the time.
I also know that some of our members hardly make any money while others coin it big time. If you have a look at "Investors Underground" on Youtube, for example, you will find a couple of their members making hundreds of thousands in a year.
How long is a piece of string? As long as you want it to be....
Cool - members making hundreds of thousands pa on youtube. Their subscription packages must be a steal at $1-2k. Get in before it's full !
tech/a
No Ordinary Duck
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A salary to me is a drawing from your trading business
Much like any business owner should pay himself a salary.
I'd expect that someone trading for a living would allocate
A salary of x and any surplus would go into their business
Capital base.
I'm surprised that everyone here talks about total earnings with no
Mention of tax and over heads.
All businesses I know which see their principals earning year in year out 6
Figure salaries have nett profits of 10-20% on turn overs of 4-10 mill
These businesses would require an investment of 1-5 million to own them.
With upper management also earning 6 figure salaries.
A consistent 6 figure salary year in year out including taxes is rare in the
Business of trading for a living from what I've seen.
And fanciful for most who ask the question here.
Much like any business owner should pay himself a salary.
I'd expect that someone trading for a living would allocate
A salary of x and any surplus would go into their business
Capital base.
I'm surprised that everyone here talks about total earnings with no
Mention of tax and over heads.
All businesses I know which see their principals earning year in year out 6
Figure salaries have nett profits of 10-20% on turn overs of 4-10 mill
These businesses would require an investment of 1-5 million to own them.
With upper management also earning 6 figure salaries.
A consistent 6 figure salary year in year out including taxes is rare in the
Business of trading for a living from what I've seen.
And fanciful for most who ask the question here.
Overheads for trading ? There's barely any..PC & internet & home(office) are living essentials that most have anyway. Brokerage is included in net profit. What else ? Maybe a subscription or 2..that's it ? Don't see how that's significant.
Tax is different for everyone, different countries, family situations etc. skews results massively when getting an idea of trading profits.
tech/a
No Ordinary Duck
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Many would have a wife.
My biggest overhead.
My biggest overhead.
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Average salary for a share trader:
For the first 2 years: -$10,000 pa
For the next 2 years: $0 pa
For the next 2 years: +$10,000 pa
For the next years: $10,000 + pa
For the first 2 years: -$10,000 pa
For the next 2 years: $0 pa
For the next 2 years: +$10,000 pa
For the next years: $10,000 + pa
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