Don't misunderstand me! I think there is great opportunity for a person to become a truly successful trader/investor, but even if that person (1 or 2 in 10) was truly successful, I would hope they parlayed their skill into something more such as a hedge fund, a substantial business etc. Look at Houtkin. I bet you he isnt trading anymore. As one of the first great day traders, he now has a successful firm (regardless of what you think of their services), makes good money, has substance, employees, reputation, something with goodwill.
Great traders usually move onto something else such as running a firm, a hedgefund, mutual fund, or heading the trading department. We are not talking rocket sciencce here.
So why should we all continue to read these posts? Because trading, understanding of the market makers, the specialists, the markets is critical to long term financial success. Most truly successful individuals make more on their capital gains than on the w2. The doctors attorneys, professionals, entrepenues, use the market to leverage their good/better/meager incomes into something better. Being a good trader increases your performance, means you can take advantage of wild swings, black mondays, etc. where the inexperienced sticks to mutual funds. Hey, look at mutual funds, sp funds up some 20, 30% over the past two years? Did you beat them, atleast? Perhaps you were pushing it too much.
take this approach, work your day jobs, all the while learning a tremendous amount about the markets, all the while investing and trading prudently and increasing your networth. Then if all goes well you will have signficant principal which, if properlly invested, should provide for a healthy and fun retirement. Afterall, isnt that what we are all looking for? If you want to make 1 million bucks on 50,000 principal, take the #9 bus to atlantic city. You have better odds there.
Done prudently, over the course, investing, INVESTING, will get you on your way.
For example, even if you were a great trader, great day trader, lets sy you had 300,000 (which is the max I think a trader could individually manage as a day trader). How much are you going to make a year? I have heard stories of great, unbelievable traders making 750,000, 1 million a year. Now, thats great money, absolutely, not trying to minimize their skills or hard work. But its a drop in the bucket compared to what gates, charles wong? (computer associate), ted turner make per year. And thats the big boys. What about the laser surgeon down the street, or the entrepenues who justed started a new computer company. You want to know where the real money is, its not under some shell in the wall street casino.
Its finding a business, working as hard, as honestly as you can, taking advantage of market niches and providing customer sevice, running it profitably and fuelling growth through hard work. Anyone who thinks their fortunes can be made by trading stocks, day to day, in the market, could be the one in nine who don't make it.
Part of the problem is this record bull run which leads everyone to thinking they can make millions without skill. This is not to minimize the efforts of the truly skilled but the recent downturn has lead me to receive more emails from concerned and upset traders who are grasping at margin calls, more emails than traders saying they maintained discipline on the way up.
The market is fun, exciting and offers great opportunity. but be careful. Anyway, just hoping that eveyrone here makes good decisions and best of luck, good trading.
Regards,
Steve@yamner.com |
