Day trading as a living? Let me put it this way, if anyone had an opprotunity to see what my days consist of, theyknow that I simply dont handle trading and just trading.
Traders are like tech stocks,like linebackers in the NFL. Because of the intensitry, the impact on your finances, etc. traders don't usually do it for too many years. Atleast the pure traders do not. If you want to be a trader, and have the skill, get into theindustry. Go to a hedge fund, a mutual funds, a market maker, a third market makers, a small firm or act as a money manager/trader, etc.
8 out of 10 traders don't make it. The number one reason is a lack of discipline. I mean, we arent talking rocket science here. But some traders like taking home intc at 100 and seeing it at 75 stops their fun.
Basically, when you are a trader, you have no substance other than you daily net. You have no clients, no business, no reputation or repoire, no contacts, a very limited knowledge of the financial industry, etc. I have said it before, I would NEVER, NEVER give up a profession or career to be a day trader.
I read about doctors and lawyers doing it and I really get worried. (not too worred) but I do say "what are they thinking about?" A record bull market does that. Lets see howmany last in a protracted bear market or when they kill SOES orother changes come around.
Its like giving up a solid profesion to become a professional gambler. Not as bad a professional gambler but not too far from it. Discipline and skill is what seperates trading from gambling. Nonetheless, the stockmarket is like any other casino. It doesnot know you, doesnt care about you and will spit on your face as they take your home and car ifyou lack discipline.
The past few weeks I have received a lot of phone calls from many thread readers, here and on the Trading Desk thread. My pleasure, after all I said to call. But I hear stories like "I have 70% equity inmy account and I own 1000 coms, 1000 nvls, 1000 s3, 1000 amat" Do you own anyting else? "no" any other cash or assets "no"...
PEOPLE...this is how you lose everything...now you go from being a good investor that has a nice lifestyle and profits to someone who has to ask their family for a short term loans. Black jack players do the same thing. They even have pawn shops right down the street. Wall Street tries to keep itself above that.
Don't forget the basics. Buy quality, diversity, allocate etc. Then within that, ifyou want to trade or seing trade, go ahead, with limits. Give up a profesison to do it? No way! Use it to complement your income, to supplement your lifestyle, but nothing more. When is the last time you heard a professional trader tellyou that? Well, I have much, much more going forme than my 3,4,10 trades I might do during the day. 90% of our clients are long term investors who we dont hear from more than once per month. 10% are very active traders, specialists on the amex, brokers at other firms, individual day traders, posters on this thread, the bank of ny, trust co of nj.. Just as I would never leave a profession to be a trader, I wont adjust my business to simply handle those traders like some other firms have done. They face the same risks. SMOOTH, not slow, but smooth and stead wins the race.
If anyone ever wants to talk about it, feel free to call. 800.221.5676.
Regards,
steve@yamner.com |
