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  1. #11
    Master Member Bogdan G's Avatar
    Happy New Year everybody!
    Trading for a living...hmm. I think it depends on each person's view on what trading for a living really means. For me it's this way: I guess we all agree that trading is risky, right? And a good trader manages risk. Well, i like to manage risk and although I trade every day, I don't want to rely solely on trading for my living because if something goes terribly wrong...I couldnt make a living anymore.
    Another thing is highly correlated with the psychology aspect: if all your income is from trading, you will feel a lot more pressure to win and make money. Also, the losers will make you angry and frustrated...that's when more mistakes start to occur; that's when you trading plan goes out the window and all kinds of thoughts start going through your head: what if i wont make any money this month, what if i blow half of my account....how will I pay my bills?
    So...although I am trading every day, I do not rely only on the money made from trading. I prefer to just compound my trading account and only withdraw if I really need some money.

    All the best my friends. I hope we will all have a good year.

  2. #12
    Active Member
    Hi, Bogdan and Happy New Year !!!

    I am totally in agreement with you! It is difficult to make trading your only source of income and if you make that idea your fiction dream, it will be very hard to improve and go forward. I also agree that it is better to trade with low risk and to compound the profit in your account. I know some traders which pretend to trade for a living, but they are too risky. They withdraw their profit every month and start from the beginning, they also sooner or later blow their account and this is not something I like very much. So the slowly is better and someday the profits will pay all the bills and beyond.

  3. #13
    Legendry Member willyw's Avatar
    Quote Originally Posted by M.J View Post
    Yes. You r correct. There r full time traders. But I think that majority of them r having other sources of income. For example many full time traders do not just rely on what they earn from their own capital. But they try to become money managers so that they can earn more in the form of commissions. Some full time traders also earn by giving opinion on reputable financial websites.

    So the bottom line is that trading is not just "trading". You can take part in it in different ways. Having one income stream, which is also highly risky, is not advisable no matter how good u r in it.
    MJ is partially correct. Back in the 80s & 90s we full-time traders are known as brokers. 90% of the brokerage firms dont pay us basic salary only commision. Most of the new brokers do not have the money to invest as at that time we are using the normal account size, no mini account like now. So they start being funds executive/account executive to manage clients' account to start off, as save up money from commission earn as times goes by. For those who can't stay in the trade for more than 3~6 months will booted out of the industry. Those who can stay more than 6 months will be successful. In order to survive many have turn to become "Churn kings" like myself,so many of the traders make decision very fast in split second and trade very swiftly. Later in the late 90s clients are aware of the commssion is killing them and many brokerage firms find it hard to do marketing, then comes the no commision scheme to attract more investors, from then on we brokers do not earn commssion but rebates on the spread when we buy/sell. Some good clients share profits with their brokers/traders. If you work hard and expand ur pool of funds or clients and can manage clients and funds well, they can be promoted to management and receive a fix salary plus your own trading commission and also over-riding which is a cut from their brokers trading volume under their supervision. Some managers over-riding are more than their own commission and trading profit. I have earn 10k over-riding in a month.
    For Peter green's about 20 trading hours per day; we are at al times on call by our clients. In those days, clients will never invest on a trader/broker if he only trades 10 hours or less per day. For traders/brokers trading 10 hours or less are know as part-time and the benefits and commission are much less than full-time.
    Last edited by willyw; 01-03-2013 at 03:03 PM.

  4. #14
    Veteran Member Ammeo's Avatar
    I cant trade more than 7 hours a day..i have a life to live aswell..

  5. #15
    Veteran Member Ammeo's Avatar
    Sometimes i wonder how did some of the old traders become Billionares in such a risky business....they must be having other income sources i think cause personally i think no middle class or lower class person can become a billionare by only trading..

  6. #16
    Legendry Member willyw's Avatar
    Quote Originally Posted by Ammeo View Post
    Sometimes i wonder how did some of the old traders become Billionares in such a risky business....they must be having other income sources i think cause personally i think no middle class or lower class person can become a billionare by only trading..
    Current traders nowadays might not be able to do so because many of you are trading part-time unlike my time in the 1980s. During that time we brokers n thats what we call now traders work full time for brokerage firms. In fact nowadays, traders during our time are know as clients. All of us trade for clients and receive commission or rebate trading for clients. Once we save up enough money we start open our own account to trade. And besides, some brokers negotiate for profit sharing. I personally have receive monthly income of 5 figures.

  7. #17
    Junior Member
    Where did you work willyw in the 1980s? These years probably were the golden age of trading. There were not many traders and competitors in the market, the movements were more predictable and technical analyses more useful. There were some disadvantages, like bigger spreads, more commissions and difficulties to set limit or stop orders, but for sure most of the old traders will tell you that today market is much more difficult than in the 80s. Some of the big players than could even manipulate the market with not very big orders, now it is impossible.

  8. #18
    Legendry Member Michael Hodges's Avatar
    trading for a living is not always what you think. I have a friend whose job is trading, he trades for a local company, he gets paid a salary and makes some bonus for his gains and therefore is considered to be trading for a living. I also trade for a living. The thing is that I don't always make my money from my trades. I leverage my skills and experience in a number of ways including writing commentary and analysis. As for only trading for a living, that is only trading your own money and living off the proceeds, that is a reality for some, and for me most of the time, but it takes patience, dedication and focus to build an account to the size that it can sustain your lifestyle while protecting your principle. money management money management money management money management.

  9. #19
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Ammeo View Post
    Sometimes i wonder how did some of the old traders become Billionares in such a risky business....they must be having other income sources i think cause personally i think no middle class or lower class person can become a billionare by only trading..
    In the old days the markets were not driven by the mass media and there constant advertisements for trading, options and the fast buck. When people were actually investing in the stock market prices were more stable and trend easier to define. Now the markets are driven by short term traders, high frequency algorithms and the need to make a fast buck. If that would change the world economy might stabilize a little...just my thoughts.....

  10. #20
    Active Member
    Quote Originally Posted by michaelch View Post
    Where did you work willyw in the 1980s? These years probably were the golden age of trading. There were not many traders and competitors in the market, the movements were more predictable and technical analyses more useful. There were some disadvantages, like bigger spreads, more commissions and difficulties to set limit or stop orders, but for sure most of the old traders will tell you that today market is much more difficult than in the 80s. Some of the big players than could even manipulate the market with not very big orders, now it is impossible.
    There are a lot of advantages in today markets. Don’t be so sure michaelch! The old traders will always say that the good old years were perfect, but they were not! It was a much more difficult to enter and exit the market, there were no limit orders in today sense. You have to trade not micro lots, not even mini lots, but full lots (100,000$). It was almost imposible for individual trader with account less than 20-30k to be able to trade. There was even no real time charts, no real time price feed and you were supposed to trade almost blindly. These were major disadvantages that we couldn’t think they existed before. With instruments like binary options you could trade small, fast and with a way better risk control than before, so I am not an old day fan

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