Can you please help and advise?

[jethero]

Hi all.
It is many years since I dabbled with investment. I work full time and want to invest for ideally a bit of extra income but more importantly a bit of fun.
I am looking at intra-day equities America. Is there a simulator that does not require a $5k broker account? I like the look of trade station (does anyone use it?)
Also, are there any full time private investors in this forum whose only income is from investments? Can I ask (I don't want to be cheeky) what an average annual %'age return is. I read figures of 8-12% but at this rate you must turnover a great deal to generate an income? What is the math behind calculating your target income versus capital employed?

I am just trying to establish the true reality of investing. Is it a potentially expensive hobby or a realistic employment.

Many thanks
JH

 

[martscan]

From the tone of your query my best advice to you would be to dollar cost average, invest the same amount, every month and buy an index fund.

 

[Mathemagician]

I am just trying to establish the true reality of investing. Is it a potentially expensive hobby or a realistic employment.

It is both, and which it becomes depends on you and you alone. That's the appeal. Trading one of the last, most pure meritocracies left on this planet.

jj

 

[martscan]

jethero:

Intra-day equity trading is not 'investing'..it is speculating to the nth degree and you would be better advised to count cards in a Blackjack game. Frankly, most day traders have short financial life spans...and the rest are simply BSers. The reality of "investing" is not to be confused with trading. Investing is risking something of value for an anticipated return...and encompasses known risks and unknown acts of God...for a better term for financial Armageddon. Trading, speculating, are animals of a different color...and I surmise you are thinking of trading for a living. That, out of the blue, is not exactly akin to saying your going to be a carpenter..or a shoe salesman or whatever. NO ONE can tell you, jethero, that you have what it takes to trade for a living..or not trade for a living. Get your feet wet, don't overload on books, expensive programs and the hundreds of thousands of educational and 'sure things' out there. I CAN tell you that when it comes to commodities, approximately 98.5% of small traders go broke, at least to the extent of having trading funds sufficient to continue trading. I don't know what the corresponding figure is for equity traders, but I would estimate it at 85%, or greater.

 

[shadowninja]

85.48291% approximately.

 

[jethero]

Thank you everyone for taking the time to reply. I am a mathematician by trade and I like things black and white. With 85% of equity traders failing it means that 15% do not fail. What does not failing mean? What sums of money would need to be working to generate a reasonable income and how many trades would you expect to make? I am very interested in the life of a professional trader. Apart from this I often here about paper trading. I would like to do this but again software is required or a broker account. I would rather not pay out any money but sometimes needs must and therefore I would appreciate some advice on what is good out there.

I would like to make a bit of an income but I also desire the challenge of quick investments.

I really enjoy reading this forum and I am listening to the advice given, however with a strategy, hyedging etc. can we not mitigate risk in our favour?

Cheers
JH

 

[shadowninja]

Since you're a mathmo (like me), not failing means having an edge. This means a system whereby the probability is reasonable for a win and the reward:risk is good. Probability can be under 50% if the R:R is very good, of course. What you don't want is a high probability but very low R:R as that can result in a series of losses wiping out your account very quickly.

And stop using the term "investment" - you'll just be fooling yourself. This site is for trading not investing. Investing is sticking money in the bank or buying and holding a blue chip stock. And it isn't fun. It's interesting, possibly fascinating, but not fun. Fun is a trackday or going clubbing or having a flutter on the horses. Trading is serious business.