Eric,
Here's what I would like you to talk about, preferrably on SI, but you might want it for a topic at the August Expo.
How much capital is enough to walk away from your day job and do this for a living full time? What I want to hear about is the success stories? Of true experienced day (or position traders), what did you start with, and what do you make on a average daily basis?
Here's where I'm coming from. I have been buying and selling with a regular broker for about 10 years. Opened an E*Trade account about 3 years ago. Thought I was smart right from the get-go. :) Due to how smart I was, I was able to claim the maximum $3000 net loss in capital gains for my first two years. I paid for my education, but for the past year, I have found a method that works for me. I have nice regular weekly gains, averaging about $1800 a week net. A year ago, the account was valued at around $18,000. Today it's around $98,000. Most of my trades are from the short side. I am fairly convinced that I can continue to bring in this average of around $1800 a week, and let my capital continue to grow.
There are two ways I look at this. I'm now at 100 grand, and expect to earn that much every year. A 100% return every year? That's absurd!. But view it another way. I sold over $2 million in stocks last year (according to my 1099), and am on a faster pace this year. I expect to sell over $3 million in stocks this year (that's buying and selling $12,000 in stock a day, or a 500 share lot at $24). So, I want to net over $100 grand a year by trading stock worth over $3 million. That's a 3.3% return. That seems reasonable. Seems like it's time to walk away from the 7am - 6pm daily grind at the office, and do what I have demonstrated to myself that I can do.
So, in your discussion, I'd like to hear if you think this is nuts, extremely reasonable, or ??? I know all the risks, and demonstrated to myself the first two years, that there are no shortcuts. You have to learn the game, and for me, a good singles hitter is more useful than a home run hitter.
All discussion from anyone here is welcome also.
mike maxton |
