How Many Of Us Do Full Time Trading??

HI FRIENDS,

I JUST WANT TO KNOW HOW MANY OF US DO FULL TIME TRADING.
I HEARD THAT THERE SHOULD BE OTHER SOURCE OF INCOME IF WE ARE DOING TRADING, BUT WHAT I FEEL IS IF WE ARE DOING IT FULL TIME THEN WE WILL DO WITH PROPER STUDY, SO WE WILL DEVELOP A CONFIDENCE, AND ONCE WE CAME TO KNOW HOW TO TRADE IN PROFITABILITY THEN WHY NEED OTHER SOURCCE OF INCOME, TRADING ITSELF WILL MAKE US MILLIONARE??

THIS IS WHAT I FEEL??
WHATS YOUR OPINION AS I HAVE LEFT MY JOB AND NOW FULL TIME IM CONCENTRATING ON TRADING ONLY.

PLS SHARE YOUR FEELINGS AND THINKING ABT THIS

THNX

rohongawale,

Full time trading ,needs full time hard work like in any other vocation.Higher the time frame you choose,higher the accuracy,higher the Risk & also higher the reward.Suppose one needs 25k per month for sustenance & another 10k for periodical requirements.Now on an avg. Yrly return by Index is say 30% hence to earn 4.5 Lacks per annum one needs 15 Lacks to start with.Now even if we earn 30% our WEALTH is not appreciating,becoz you need to withdraw money every month.
The tution fee one requires to give to the Mkt is sometimes 50% or more of the start up capital,if one gradually reduces time frame.The cache is until you reduce the time-frame the Rolling of capital is less & in Bear phase (2-3 months on an avg) we are left with only Watching the Mkt.
So it boils down to getting the Directional call 100% right & Absolute PIN POINT Entry.
Which when reasonably achieved can give a decent income but again Wealth Creation will be difficult,for that we use Leavereged option & when in a Leaveraged Trade we tend to Exit fast.
Hence for Monthly Sustanence it is better to use Leavereged option in the Fullest Hilt,means High Margin (offered in Day Trading) plus Derivatives.
For Wealth Creation,Swing trading with Longer holding period,whereas those Stocks will give margin ,with which Day trading in Derivatives ;can be a somewhat solution of the situation.
But again plz remember 2 things
1) 100 % right Directional Call (very very difficult)
2) Pin-Point Entry (absolutely awesome)

Yes it is possible to make Trading a full time occupation,but better not to get swayed away with our 1-20 calls being right in past,becoz now we will have to make atleast couple of calls right EVERYDAY for the REST OF OUR LIFE each & everyday.
Hence think deeply the dedication / commitment / focus we will have to devote,not an occassional Sanath Jaysuriya but a consistent Gautam Gambhir of the ongoing IPL.

Asish

N.B. I am not discuraging you,kindly not misunderstand me but through this post want to address the Myth / trading is Eassy.

Uasish
Thanx A Lot,
Ya I Know Trading Is Not That Easy, And I Have Also Seen That For Couple Of Days Which We Earn In Intraday, The Whole Amount Or More Than Tha Vanishes In A Single Day In Intraday.
But Now Im Trading With Dicipline,(and Still Learning To Trade In Dicipline),
Doing Less Intra , Studying Tech Analysis And Swing Trading.
What I Think Other Way Is Suppose If We Select Some Midcap Stks From Our Metastk Which Are Bullish Then We Can Buy Bulk Qty And Can Sell Them In Couple Of Days. We Can Easily Earn Rs 1000-1500 On One Trade After Brokrage As Brokrage Is Also Less In Low Price Stk.

There May Be Many Other Stratergies Like This But Just Sharing One Which Im Using Now A Days.

Professionalism,100 % devotion and die hard attitude is must to be successful in any challenging field.
Let it be cricket(t 20) or day trading right attitude is necessary.
You cant play a T20 with test match attitude(See what happened to Rahul Dravid led Banglore Royal Challengers) similarly u cant do day trading with long term investor attitude.
even stock selection for day trading is of crucial importance, u have to consider Beta and volume there.
Australian team wins world cup in a row because all its player are professional players.There B team is as good as it's A team.
they are not complacent(unlike indian team whose members get more than sufficient sum from ads and as remuneration).
last but not the least "never give in" attitude is very important Whether in trading or cricket.
A true trader says to himself " If I have lost money in this market I should be making money from here only and I just cant think about changing the profession".
happy and patient trading

A true trader says to himself " If I have lost money in this market I should be making money from here only and I just cant think about changing the profession".


very true mahesh,
thnx for your suggestions.
will definately consider all your valuable suggestions

guys! I did not understand any logic comparing cricket with Stock market..
If you have money and a very good strategy maker and know the market max.. you can do full time stock marketing.. But Usually not recommended. I would rather compare stock similar to addiction of gambling / smoking/ drinking etc.. unless you have self control.
rgds,

rather than stocks , the live screens r more addictive

rohangawale,
All the best for taking such a bold step and starting to trade for living.
Besides the points highlighted by other posts , I will add following crucial to the list
1) Money management - How much of capital to put in one single trade.. and what part of that capital you can afford to loose.
2) Risk management - What % of your capital you can afford to loose in one single trade.
Market is full of opportunity provided your account has capital for it. Generally pros don't put more then 1 to 2% of their acct at risk in one single trade. In that way, they can come remain in the market and play the next day.
3) Whatever strategy you choose, find out the worst drawdown that can have. One might be tempted to play midcap/ small cap but they can hit you by 20% in one single day by opening against you at the cicuit limit.
4) Discipline - good that you are already following it. Discipline to stick to your rules (of entry, exit, risk, stoploss) is the key.
5) Keep a tab on emotions when u trade. Trader go thru stressed, anxious, revenge, greed, fear,panic,euphoria and security in the market. If you record your the emotional state against your trades then in very short time you will be able to control your emotions and be comfortable in all mkt conditions (remember the time when great batsman are in the form (in their zone) and then even the best bowlers find it difficult to get them out).

Trade well, not often.
Happy trading.

Hi,

If you are considering trading as a business, think of it as if you are starting a new company and if you already got the skills to run a company then go for it. If you are thinking trading as another day time job then don't quit the current job before the new employer (Mr. Market) pays you for atleast 3 months.

just my 2 cents,
Vairam.

AW10
thankx for your additional suggestion.
all this things are really helping me and motivating me

thanxs yaar