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Day trading dreams

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SamLau

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Hi again all.

My plan is to quit my cruddy job @ 40 and day trade for a liviing.

I have 8 years to save up enough money to start. In the meantime Im trying to learn as much as possible. I could possibly save 20K a year.

Are there any experienced day traders out there who could tell me how much capital i will need to become a successful trader. Im not looking to make big dollars but enough to live confortably

Thanks again
 
Worry first about learning how to take money out of the markets.

That will probably take all of those 8 years if your doing it while working a full-time job.
 
The first question to answer is how much you can reliably return from trading.

If you can't answer that question based at least on disciplined paper trades, preferably real trades... Then I don't think you should quit your day job just yet.
 
In 8 years you will obvisouly learn alot more and your attitude and ideas will change.

Maybe you will just day trade or you can still hold positions for trends etc allowing you to hold stocks for weeks/months and not having to sit in front of a computer all day every day time will tell.

The main question is how much do you need to live on 1st.$1000 a week?$2000?

Alot of people will probaly disagree with this but If your any good and can trade cfds I personally believe you could make $1000+ a week starting with a $10,000 cfd account.Then again you could lose the $10,000 in a week if you dont know what your doing.

Like the last poster said it will peobaly take you those 8yrs to learn how to CONSISTENTLY take money out of the markets.

good luck
 

I currently earn $750 a week after taxes. I would like to earn $1000-$2000 a week doing this. What do u reckon? $200,000 is enough?
 
You would really have to talk to someone who just lives off their trading income.I still work but not full time.Still for the money but i still like working occasionally.Someitmes 5/6 months or until Im sick of it.

I am activley watching the market all the time and sometimes Im heavily invested and sometimes not.Ive had years when Ive made alot more on the markets than at work and sometimes Ive made more working.Hopefully one day I consistently make more from the markets.

This financial year Ive made more off the markets so far but only early days.Just over $5000 so far trading cfds and we have just completed the 1st month.But this could be still $5000 or less in 6 months but I would be more than happy to keep the $5000 a month ave up.

Like I said I honestly feel it would be possible to start with $10,000 and make $1000+ a week trading cfds but alot easier said than done.It is incredibly hard to be profitable month after month.anyone whos traded for 5yrs+ will tell you about the ups and downs you encounter from the market.It would be one of the most emotional jobs you could have.incredible highs and coming back to earth with a huge thud lows.But theres no way I wouldnt want to be involved in it

If you didnt want to trade cfds you probaly would need $200,000 to make a decent wage.But if you learn to trade properly and understand cfds then thats the way to go in my opinion but you definetely need a couple of years experience before tackling cfds imo.BE WARNED.

theres no reason you cant do it if you put in the time and effort and thats alot of time and effort.either you have the passion for it or you dont imo.

cheers have to run
 
SamLau said:
I currently earn $750 a week after taxes. I would like to earn $1000-$2000 a week doing this. What do u reckon? $200,000 is enough?
Click to expand...

I don't see why 200k wouldn't be enough to make a modest living, but you may have to reduce your 1-2k expectation. As other posters have suggested, it takes experience (and an X factor?!) to consistently take profits from the market.

Having said that, you have created an 8 year plan, which i think is great. If i were you, i would spend at those 8 years learning the market and trading conservatively if you like..

If you want 1-2k out of the market each week (am assuming pre-tax), that means you'll need a minimum 25-30% return on your capital, each year. You'd probably want to grow your capital by at last 10% per year also, which would bring your desired annual return up by ~10%.

Most important thing is cutting your losses short and letting your winners run.
 
Asking for 1-2K per week? Consistently and for a newbie?
Might be asking just a bit too much.

Whatever else, do not give up your day job!
 
ajjack said:
Asking for 1-2K per week? Consistently and for a newbie?
Might be asking just a bit too much.

Whatever else, do not give up your day job!
Click to expand...

I think i'll stay away from leveraged products like CFDs. I Currently hold positions over weeks/months because of my job commitments. I plan to use my 4 weeks annual leave each year to trial run how to intra-day trade fulltime.
 
SamLau said:
I think i'll stay away from leveraged products like CFDs. I Currently hold positions over weeks/months because of my job commitments. I plan to use my 4 weeks annual leave each year to trial run how to intra-day trade fulltime.
Click to expand...

why don't you set yourself up with a datafeed and some software that will allow you to record the day's action for you to trade on a sim later on?

That way you can learn at your own pace at a time that's convenient to you. No need to waste your holidays to try and get some screen time.
 
professor_frink said:
why don't you set yourself up with a datafeed and some software that will allow you to record the day's action for you to trade on a sim later on?
Click to expand...

Great suggestion. You can also look at trading FX and Euro markets at night.
 

Thats a great idea
Can you recommend my some software which have the feature?

much appreciated.
 
SamLau said:
Thats a great idea
Can you recommend my some software which have the feature?

much appreciated.
Click to expand...

Ninja Trader.

Cannot beat it for intraday realistic sim practise.

Just on the capital thing I reckon you are completely absolutely F'in nuts if you think you can go full time on $10,000 tasmanian. Even if you are very skilled you would be lucky to survive with an added 0 on that sum.
 
what matters isnt how much you have to start with... its whether or not you can generate a regular income or gains from any capital. Whats the point of starting with 1M if your returns are -5% :
 
jono1887 said:
what matters isnt how much you have to start with...
Click to expand...
Thats not ture.

jono1887 said:
... its whether or not you can generate a regular income or gains from any capital. Whats the point of starting with 1M if your returns are -5% :
Click to expand...

I think what an experienced trader considers "regular income" is a million miles away from what a wage slave considers "regular income". Thus the reason why Nick Radge recommends 3 X wage before giving up the day job.
 
TAX

Never seen this discussed.

I'm surprised that full time traders don't talk at length about this scourge!

If they're making as much as some claim (appear) to be they would realise its something that cannot be ignored for any day trader! I don't trade full time but my Tax bill from trading really really "P"s me off!

You want to make $100K then you'll need to make $200K
You'll need to be twice as good as you think you'll need to be.
 

I have many a time tech. its a major drag on performance and position size.

Thats 1 of the two reasons I always recommend trading prop. Where unprofitable traders keep asking but if you are so profitable why would you need to

See here point 9 as to why,

https://www.aussiestockforums.com/forums/showpost.php?p=401340&postcount=75

EDIT; then you could also see why a profitable daytrader would need to raise OPM to get over this account drag for true wealth
 
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