I have set up another account for one of my trader to do position trading beginning next year. It's another challenge again, not by me but an experience trader who is keen to test his trading skill on a part time basis, while continue doing his day trading.
He can trade any contract when the opportunity arises, no pressure to perform, I'm just curious to see how he will grow and how we can learn from him (if he makes money). He is a stake holder with 50% share in funding the account.
Position traders don't trade daily and might hold on to a position for days or weeks. Can these traders make money? Can he survive and make enough to feed his family? Are most position traders doing it part-time just for the extra money?
I think you have to be rich to do position trading. Stock traders are mostly position traders, can only buy and hold. And for those doing contra trading, most will be digging their own grave, because the comm will kill them over time. But, luckily the comm has now come down tremendously, so they can survive a little longer.
Most of the professional traders are all doing day trading, scalping or spreading to make a living. They are all hardworking, discipline and focus in what they are doing, every second, every minute. It's not a easy life, when you are in, you will realise how tough it is. The competitiion is stiff, it's a negative, negative sum game.
6 comments:
S
Hi Fat
Firstly, just want to let you know that it great to read your blog again!!
You wrote "Most of the professional traders are all doing day trading, scalping or spreading to make a living. They are all hardworking, discipline and focus in what they are doing, every second, every minute. It's not a easy life, when you are in, you will realise how tough it is. The competitiion is stiff, it's a negative, negative sum game. "
I am an inspiring trader hoping to make full time someday and hope to make alot of money from trading. i read your blog regularly to learn and for motivation. But when i read your comment above, it sound like i am working towards an impossible dream since you mentioned it is a "negative negative sum game"
Can you share your advice and guidance? Appreciate alot, Happy New Year!!
Hi Roy,
Thank you!
Don't be discourage, that's the fact of life that we have to accept, it's real and it's the truth.
It's not an impossible dream, you have to perservere and work hard towards that dream, that applies to any job.
Trading is a business. When you set up a business, you need capital, rent a place, hire staff, etc and when you make money, pay taxes, any difference?
There are many books written on trading, many courses available, they are all teaching you the correct way to trade, but, how many can be so discipline to follow the rules of engagement?
An example, just to keep a simple trading journal and plan the trade, how many do it?
After trading for some time, you will start to reach a certain maturity in the way you view trading that suits your personality and objective. That's experience that you gained.
You need to be strong and you need to develop a positive thinking mentality, or else how can you succeed in life?
Don't let what I have written sway you, it just manifest your weakness, pick yourself up and keep saying "I can do it", "I can make it".
There are many successful traders around, get inspiration from them and learn from them. Be pro-active!
List down the various pro-active steps you are going to take in order to achieve your goal.
With passion, I'm sure you can make it.
And make that your New Year resolution.
Best Wishes!
sunshine
Hi Fatt
Thanks for your advise your advice.
I have been trading futures for a year now and i am doing it while holding a full-time job.
I am at the stage of figuring it out and discipline myself to trade as planned.
I'm certainly glad to have enlighten you and all those who have a passion for trading. You are not alone.
Trading part time is very different from doing it full time. It's best that you concentrate on markets that move during certain time of the night. Traders make most of their money in time of volatility.
You need to be very focus during that 1 to 2 hours of your prime time.
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