Hey all
Couldn't sleep last night so been surfing the web
Something that strikes me a lot is the difference between being a profitable trader and being a profitable trader that makes exceptionally good,returns
Let us assume that as a trader,you respect and mange your trading capital,using acknowledged % allocation principles (1-3%)
Let's also assume you are getting 60%+. Regarding win rates ......more,the better remember !!
Unless you make significant numbers of trades on a daily basis you can never make a decent return on capital in a weekly monthly or indeed annual timeframe .....
Full stop
This is meant as no disrespect,to hobbyist traders who trade higher timeframes or hedge fund managers but it's true.........a million dollars a year income sounds great to someone with a $5k capital pot......"..but if it's only a 2% return for example based on low volume trading then it's not going to pay the rent ......once that performance translates into $100 a year return !.......Buy a Yacht on that :smart:
Day trading is not for the faint hearted .....but in my opinion it's the only way to make money from low, capital bases .......something that also allows,you not to leave too much in the hands,of the brokers at any one time
N
Morning N
Just watched that video you posted on FX Viper. I had heard of that guy and it was interesting to find out more about him and his set up etc. You can tell he professional with the amount he's spent on his home set up - along with his battery back's ups and different computers for his special clients etc. With regards to actually trading in his Range Rover on his Sat Nav screen at approx 3 30 pm US time - that's like 8 30 pm UK time - and normally the market is slow and boring then - but as he said he did not want to be stuck in a trade over the weekend with Cad news out early Monday Am.
Also he said he no longer trades London - which I can understand with the time difference - it makes us realise how lucky we are living in the UK and having the pick of the main trading day etc. Thanks for sharing that N
With regards to day trading - remember the Industry ( the commercial Trading world ) does not want really retail day traders to be successful - and so what better way to discourage them - by getting out false information about you cannot trade the "noise" and intraday movements - it's all too random and you will have low success etc etc.
What rubbish - trouble is as you say intraday trading is not for inexperienced newbies - unless you got the screen time and the years of study behind you - you will fail - whether you find out in just 1 month or 1 year.
So many longer term traders kid themselves - yes just trading a few hrs a week sounds ideal if you have another job etc - but the trading cannot be looked upon as a part time hobby - you cannot be a "little or part pregnant " -or a part time surgeon after a 3 months course ( lol) - you either learn properly and understand PA from its conception etc and know you will be either 3 to 7+ years learning part time - or at least 2 to 3 yrs if you can spend 40 hrs a week intraday trading.
I dont know N whether you checked out Grey1 and his stock trading ?
Its chalk and cheese with FX - but there are similarities on how you intraday trade.
Great if you have one or two brilliant trades and you can stop after 1 hr - but as we both know everyday is different and so unless you can fit it the required number of trades to make your targets - then its not doing to work.
For traders to be successful with just 2 or 3 trades a day is difficult everyday.
As you know I normally need 10 to 20 trades over a day. Some days - yes if my first 6 scalps are all good and earn well - I am there but other days If I said I am going to stop after 5 trades and I got 3 or 4 wrong - I would have a losing day - and still have maybe another 4 or 8 hrs to change that.
That's why you need the numbers - when I take 18 or 22 trades in a day it because of only 2 reasons - ie 1 - I am either having a bad session with 5 or more losses and my wins are small - so I need the trade numbers to get there - ie 18 trades and still only just make 40 -50 pips
Or
I am on a roll - the market is busy - I am in my trading zone - everything is going well and i want to make "hay whilst the sun shine" and so my 18 trades might make me triple by normal daily target etc.
So if you have a method that means it difficult to take more than 3 trades a day - i pity you really - long term its not going to produce really what you want in terms of returns etc . Fine if you are happy with 20 -40% annual return ( if you lucky) but its not going to make you much money unless you have a half a million plus live account.
A full time intraday trader with a $25k to $50K live capital account can make a decent return - enough to be just making a living with working 15 to 40 hrs a week . If you cannot get more than $25k together then really you should not try and go full time - because the average salary in UK is under £28k ($42k) and so you need to be able to at least earn that in your early few years full time.
For a $80 k or £50k annual earning capability - You don't need $200K or $400K + capital account if you are successful at intraday - but you have to be really good to make it with a $50k account - but I can assure you - you can do it - much to the annoyance of what the industry don't want you to know .
Everybody goes on about dodgy vendors and scammers and bad trading course and then forget the actual industry is full of banksters and bar stewards who just lie and deceive and totally rip naive retail traders off - day in day out.
That's one of the reasons 80 -90% or whatever the figures are fail - its not just because they don't put the work in or are not suitable - they are mislead by the whole industry
That's my rant over N - time to read the Sunday papers lol
Regards
F
