The Heck About Trading for a Living

[SpearPointTrader 10]

I think this is one reason why guys become brokers, even though they can trade just fine. The income coming in pays the bills during the drawdowns.

 

I'd add that the income from the job as a broker, is a huge stress reliever, because you know the bills will be paid. You don't have the stress of the baby needing new shoes hammering down on you with every trade you place.

 

 

There's even more to it- expenses never stop coming. Say someone remains flat for first six months (costs for learning to trade). Do his bills stop coming? can he tell his mortgage agent that he is having a bad phase? Hell, no. He needs to keep withdrawing something always IF he is "trading for a living".

 

And even more to it- there could an disease, divorce, heart-break or anything which brings down the productivity. The expenses do not stop coming.

 

This is why I took the figure 5K instead of mangeable 4K.

 

 

I have a different perception here though. It's not about being a star or being on top. It is simply about being a professional trader.

 

What is the survival rate for wannabe athletes? or entrepreneurs? It's very low similar to professional trading. The majority don't make it, even though who make may just have a average IQ. There are several large trading floors in NY and NJ... walk into one and you'll see REAL TALENT.

[Guest OILFXPRO]

this job requires math skills.

 

back to the broom closet with you.

 

I can flip burgers or teach the world to trade instead , my mentor/educator Dr chart.

[Fudomyo 10]

I can flip burgers or teach the world to trade instead , my mentor/educator Dr chart.

 

You're responding to a post from 3 years ago? lol

 

Well, if you want to teach go for it. Trading is hard work but pays a lot better.

 

It takes time to make real money retail trading, no one is consistent when they start, no matter what their background is. If you come off a desk into retail there are big adjustments, and if you're learning trading on your own it's a lot of work.

 

I know 4 people in 15 years who I can say make real money retail trading, and I've met a lot of traders. The main problem people face besides their personal shortcomings is conditional change of the markets.

 

When we were in the 30 year bull run there were guys who did one thing and did well. Once we had a secular change in the market, quite a few can't make money anymore.

 

What's funny is people will buy books or courses from people who had proven success in past market conditions that aren't relevant to the market today.

 

Everything is timing and skill. So by the time this market cycle is complete, a new set of rules will need to be developed. This is where adaptability comes in, but adaptability is a double edged sword. A trader needs to be able to adjust to conditional change without changing the rules that work, this kind of process is outside of a lot of people's abilities.

 

Take flipping burgers for example. If you teach a man to flip a burger today, he can flip a burger for life. But if the conditions for flipping a burger was contingent on a larger range of variables which were constantly changing, then flipping a burger would require a completely different skill set and experience to be successful. You would need the knowledge of what a perfect burger is, and then be able to adapt your burger flipping rules to fit the current condition to produce a perfect burger ...and you'd be highly paid for it.

 

Since that's not the case, I'd strongly recommend against pursuing a career in burger flipping.

[tradingwizzard 10]

You're responding to a post from 3 years ago? lol

 

Well, if you want to teach go for it. Trading is hard work but pays a lot better.

 

It takes time to make real money retail trading, no one is consistent when they start, no matter what their background is. If you come off a desk into retail there are big adjustments, and if you're learning trading on your own it's a lot of work.

 

I know 4 people in 15 years who I can say make real money retail trading, and I've met a lot of traders. The main problem people face besides their personal shortcomings is conditional change of the markets.

 

When we were in the 30 year bull run there were guys who did one thing and did well. Once we had a secular change in the market, quite a few can't make money anymore.

 

What's funny is people will buy books or courses from people who had proven success in past market conditions that aren't relevant to the market today.

 

Everything is timing and skill. So by the time this market cycle is complete, a new set of rules will need to be developed. This is where adaptability comes in, but adaptability is a double edged sword. A trader needs to be able to adjust to conditional change without changing the rules that work, this kind of process is outside of a lot of people's abilities.

 

Take flipping burgers for example. If you teach a man to flip a burger today, he can flip a burger for life. But if the conditions for flipping a burger was contingent on a larger range of variables which were constantly changing, then flipping a burger would require a completely different skill set and experience to be successful. You would need the knowledge of what a perfect burger is, and then be able to adapt your burger flipping rules to fit the current condition to produce a perfect burger ...and you'd be highly paid for it.

 

Since that's not the case, I'd strongly recommend against pursuing a career in burger flipping.

 

Hi there,

 

That is one of the best posts I read in a while here on TL and publicly want to thank you.

 

TW