Wednesday, October 17, 2007

Wanna-be a Millionaire tomorrow

Forget it, turn away from the markets, you won't make it.

It doesn't matter what system you use, it won't work for youm .... unless you invest countless hours, days, weeks and years in your training.

Trading is a fulltime job and it requires an education as every other profession.

Your fund returning 10% over the year? Well that's a job well done, it's above the interest rate you earn, when you give your money to the bank, but these 10% on your equity can be earned in a day, you know that?
The S&P falling from 1559 to 1549 yesterday is 10 points, is 40 ticks, trade 50 cars and you just made 25k$ on your 250k$ account (margin is around 150k$). And for breakfast you could have outdone your fundmanager in a day and added another 25k$ to your account. I've marked the trades below. Really nothing fancy.

Globetrader_16

You don't like it that risky, me neither.

So take the long route, earn your right to trade 50 cars, by successfully trading 1 to 5 cars for a year and longer.

Be prepared, as I'm sure it will take longer, before you know how to swim the markets, before you have left all that baggage behind you which is holding you back.

It took me 5 years to leave these oscillators including the CCI behind me. I'm still sometimes thinking...shouldn't I put them back on...especially when I had a particularily bad day.

Keep it simple...the only important question is:

Do prices from this pricelevel right now go up or will they go down

That's all you need to decide. Problem is, you need to be right more often than not for your emotional setup and you should have higher profits than losses or you won't be able to survive long enough as a wannabe trader. You need to find your edge, your system, a system you understand and trust and that takes time. If you rush it, you won't last, simple as that.

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