Who trades full-time?

[Wysiwyg]

Re: Who trades fulltime?

Like wise. How long for you? I mean before you tried out 'full-time'. I've considered it too but know I defo need many more notches under the belt before beginning this journey.

edit: should have refreshed before posting, already answered.

Wysiwyg,

What/how did you trade when you when went full time (futures, stocks, fx)? How long had you had experience in market before you gave it a crack?

cheers

What .... was Australian shares, CFD cash indices and foreign exchange market. How .... was discretionary selection based predominantly on company news announcements. x 2.
How long before ... about 1 1/2 years.

Did much wrong because I did not know any other way. For one I did not have a system and two I didn't use a stop loss. Share prices always go up ... right. :shake:

 

[Kryzz]

Re: Who trades fulltime?

What .... was Australian shares, CFD cash indices and foreign exchange market. How .... was discretionary selection based predominantly on company news announcements. x 2.
How long before ... about 1 1/2 years.

Did much wrong because I did not know any other way. For one I did not have a system and two I didn't use a stop loss. Share prices always go up ... right. :shake:

Thanks for that wysiwyg, where are you at now atm if you don't mind me asking? I assume you trade FX and equities (in the process of developing a mechanical system based on your posts re amibroker etc)? Do you intend on having another go at trading full time anytime soon?

Was your attempt at trading full time a good decision for you, learning wise? I'm currently making an ok return on a small amt of money with FX, was thinking of putting a relatively larger amount in in the new year, with full-time trading the ultimate goal. I feel this would be my next logical step.

Appreciate your responses,
cheers!

 

[Wysiwyg]

Re: Who trades fulltime?

Was your attempt at trading full time a good decision for you, learning wise?

Yes experience wise and no financial wise.

:topicDid I tell you about the time I pulled 907 points in 6 hours on +1 US$10 DOW cash contract. Biggest jag yet. Yes that was over 10k AUD in six hours from a DOW bounce. Obviously I missed more than I hit during the bear market and more stupid luck than anything. Boast number 74 on this thread.

https://www.aussiestockforums.com/forums/showthread.php?t=394

Of course I'll be back. :

 

[richard99]

Re: Who trades fulltime?

I wouldn't mind having a crack at full time trading but I think I need to increase my knowledge first. I think if I did it then I would still like to have a part time job just to give me some time away from home.

From what I understand if your a full time trader you can avoid paying
capital gains tax.... is this correct ?

Also can someone please define day trading for me. Is it the same thing
as full time trading ?

 

[Julia]

Re: Who trades fulltime?

Richard, what sort of capital base would you intend to be the basis of your full time trading?
What income level would you need to achieve if you had no other job, or alternatively if you had just a part time job?

 

[richard99]

Re: Who trades fulltime?

I'd be looking to make $40,000 + from full time trading.

I'd be starting with $30,000

 

[Julia]

Re: Who trades fulltime?

I'd be looking to make $40,000 + from full time trading.

I'd be starting with $30,000

Hmm. I think I'll leave it to someone else to take this further.

 

[richard99]

Re: Who trades fulltime?

I know I probably need more capital to make it work.

Julia I am in the chat room - can you give me some advice..

 

[weird]

Re: Who trades fulltime?

I trade full time (as a private retail trader ) and has been doing so for ~18 months.

I start my day usually at 8am, catching up overnight market news, review existing trades (e.g. moving stops and targets) and pending orders, and scan for interesting stocks that I will watch closely during the day. When market opens it's all about managing/placing orders, checking entry and exit signals, reading news and announcements, researching and other analysis. After market closes, it's reviewing trades, records keeping, checking broker statements etc. Most days end at ~6pm, although I do often read (news / trading books etc) at night.

So working hours are easily ~50-55 hours a week for me, which is similar to what I used to do in a full time job. I do save ~1hr each day commuting...
Trading full time to me was not a lifestyle choice at all, it was a work-style choice. Being able to make your own decisions, plan your own time, do everything your own style, review your own performance, no office politics or putting up with incompetent co-workers, wearing only undies if it gets hot... the benefits are endless.

Some trading style probably require less hours worked. I guess I am just not that good. I also always worried that I will miss some opportunities. With full time trading you have to take opportunities when they come, as you just don't know when the next one will come around. To highlight the importance, my biggest trade accounted for 25% of my year's return... so I can't afford to miss too many of them.

I trade mostly Australian shares, and run a suite of discretionary strategies... bit of long, bit of short, bit of pairs, bit of technical analysis and bit of fundamental analysis. All strategies are changing all the time. Because the array of strategies, I sometimes have over 50 different positions at the same time... keeps me busy I guess.

One thing I would also stress is that you should start trading from a position of financial strength rather than financial need. If you want to make $100K a year, you should have at least 3x that amount. Otherwise you may be forced to push the action even when the market is quiet, or you will have trouble recovering from a poor first 6 months. Start small, build the skill, then build the capital. Or, if you have a large inheritance... then go for it.

Good post skc, still reading through the rest of it.

 

[weird]

Re: Who trades fulltime?

Unpopular comment, but does being retired from your normal work, and now that you sit at home all day , constituent saying "I trade full time". I guess it does, although the so called dream for most happens before 65. Not ageist ... we should all exploit life for the longest ... but don't add a 'stage' of life to mess with dream stats.

 

[nomore4s]

Re: Who trades fulltime?

I'd be looking to make $40,000 + from full time trading.

I'd be starting with $30,000

I know I probably need more capital to make it work.

Julia I am in the chat room - can you give me some advice..

Richard, I'm going to be pretty blunt here so don't take offense, just giving you a bit of reality.

First, if you think you can consistently pull over 100% return on your money each year even using a high leverage, especially if trading only ASX stocks you would want to be a pretty experienced & accomplished trader and judging by some of the comments you have made in the chatroom the other day, you're not even close.

Also $40,000 per year is in reality a small salary if relying solely on the markets by the time you take operating costs & tax out, 1 major mistake or hit and you are a long way behind the 8-ball especially with only $30k behind you. It would also be very hard to grow your capital on that sort of income. In some ways trading is harder then running most other businesses and requires just as much (if not more) entrepreneurship, innovation, skill, capital, hard work and good luck.

You are correct that you don't pay capital gains tax but you do pay tax on your profits - it is not a tax free business.

I suggest you have a good search of this forum and find out the reality of how hard what you are suggesting will be. There are plenty of posts from experienced and not so experienced traders that have blown more then $30k on the way to learning how to successfully trade.
If you are serious and determined to become a successful fulltime trader I would suggest you start really studying the markets and learn how they work and then sit down and work out a plan on how you can obtain that goal before you blow that $30k.

Good luck and I hope you do stick around and learn.

 

[Mr J]

Re: Who trades fulltime?

Unpopular comment, but does being retired from your normal work, and now that you sit at home all day , constituent saying "I trade full time". I guess it does, although the so called dream for most happens before 65. Not ageist ... we should all exploit life for the longest ... but don't add a 'stage' of life to mess with dream stats.

If someone said they were a full-time trader, I would think they were just after a no-hassle way of describing their occupation to 'outsiders'. Either that or they worked long hours, thought it needed a 'full-time' approach, or that they just went 'pro' .

I wouldn't bother, I just say "trader", along with the other 1-2 word answers I have for this topic.

 

[newbie trader]

Re: Who trades fulltime?

Richard,

Not sure if this is right but maybe pick a rough annual return % that you think you could achieve then divide that into the amount of income you wish to generate.

(e.g 50k per year at 20% = $250, 000 trading capital?)

This is just my opinion (which probably isn't correct).

N.T

 

[kincella]

Re: Who trades fulltime?

I just came across this site....he has some interesting articles for stock pickers

and substantial journo skills.... boasts 282% return over 13 years.....sounds modest to me....
what returns do most posters achieve...or other stock selection sites boast

http://jubakpicks.com/2010/02/19/why-even-after-a-70-gain-this-is-still-a-secular-bear-market/

heard this on the radio...believe it was in response to the Greek pm's explaination of derivatives....

its like taking out an insurance policy on your neighbours house, then burning down the house in order to collect....

 

[newbie trader]

Re: Who trades fulltime?

boasts 282% return over 13 years

Just to clarify, do you mean 282% (so around 21% return per year) or an avg return of 282% each year for 13 years?

N.T

 

[newbie trader]

Re: Who trades fulltime?

If anyone would be happy to post some examples of their annual returns or make some guesses as to what is achievable, it may be of help to Richard.

N.T

 

[Julia]

Re: Who trades fulltime?

If anyone would be happy to post some examples of their annual returns or make some guesses as to what is achievable, it may be of help to Richard.

N.T

Not really. What is achievable will be determined by the experience and skill of the individual.

 

[Largesse]

Re: Who trades fulltime?

don't know why anyone would want to trade fulltime

worst gig in the world

 

[tech/a]

Re: Who trades fulltime?

don't know why anyone would want to trade fulltime

worst gig in the world

Agree
Couldnt think of anything worse.

I have no desire or intention.

As to how much youd need its like any business MOST are initially under capitalised.
If you bought any business how much would you expect to make in profit investing $40k in it?
The business average for a good one with a proven return is 30% on capital
so for $100K thats $350K initial capital.

My own business has 6x that in capital invested and a commensurate return.
After working 30 yrs to get there why on earth would I (Or anyone else in a similar position) want to trade for a living!

 

[mazzatelli]

Re: Who trades fulltime?

don't know why anyone would want to trade fulltime

worst gig in the world

Where are these idiots who would choose this as a professional career?
Especially the discretionary proprietary futures type :