Profitable Trader?

#1
I was wondering if there are any profitable traders here. I myself don't have any risk capital (being 23 years old) as of now to trade but I do paper trade. I tend to hit breakeven, neither making nor losing money as yet but simply keep learning from my mistakes. So, anyone making money (no matter how small) from trading?
 

Alchemist

Administrator
Staff member
#2
I have made some money from day trading in the last few months.

I have observed that I make money from trading when I don't try too hard to make money.

Earlier I used to trade every day and was losing money.

Once I got rid of the trading addiction, my trading volumes went down, but I started making profits.

I just checked my trading diary today.

I have not made any losses in the last 4 months.

I day traded on just 12 days and took delivery once (NMDC OFS).

Total 15 stocks traded.

I keep minimum cash margin (Rs 1000) with my broker and I hold just two stocks right now. My exposure limit is very low and thus the absolute return is miniscule.

It is very difficult to make money consistently from trading.

I think the secret of making money from trading is to wait from the right opportunity, even if it means doing nothing for days or weeks or even months.
 
#3
Alchemist, that is interesting. Considering the less than lukewarm response this thread has got (and by general statistics), there is no doubt that a significant majority of traders lose money.

Nevertheless, I have found myself in many similar circumstances such as yours where its quite prudent to wait for a trade even if its for weeks together rather than jump in a trade out of boredom.

From my own paper trading experience I found only 3 important things I needed to follow. Method (technicals for me but it could be fundamentals or whatever that works for you), Money management & Discipline (to follow the method and money management).

I frequently watch experienced traders on youtube for their advice and have found guys like Alexander Elder, Steve Nison, Richard Krivo, John Bollinger and Ilya Spivak (one of my favourite from dailyfxnews) talks quite good. I would highly recommend this playlist and this. I had watched all the videos in it and quite a good deal of my technical analysis knowledge is actually from the latter videos.
 

Alchemist

Administrator
Staff member
#4
I frequently watch experienced traders on youtube for their advice and have found guys like Alexander Elder, Steve Nison, Richard Krivo, John Bollinger and Ilya Spivak (one of my favourite from dailyfxnews) talks quite good. I would highly recommend this playlist and this. I had watched all the videos in it and quite a good deal of my technical analysis knowledge is actually from the latter videos.
Yes, but I always wonder, if all these traders and analysts can make money from trading, why do they have to sell their ideas and services!

It is possible to get 10-20 times leverage for day trading and 3-5 times leverage for short-term trading. Anyone with a moderate success rate can make large amounts of money in the long term.
 
#6
Yes, but I always wonder, if all these traders and analysts can make money from trading, why do they have to sell their ideas and services!

It is possible to get 10-20 times leverage for day trading and 3-5 times leverage for short-term trading. Anyone with a moderate success rate can make large amounts of money in the long term.
While I believe it's good to be moderately cautious, it does no good to be extremely skeptical. All the traders I have mentioned are profitable and just because they want to sell some product doesn't tarnish their credibility. A software engineer may want to make some extra cash by teaching, say C++, that doesn't make him a bad programmer. Anyways, I personally do like to listen to what they have to say, everyone may not like or believe them but that's just personal choice.

As far as leverage is concerned, if we follow proper risk management, leverage can be extremely rewarding (I personally like options much more than futures as they offer very good risk-reward if used correctly).

Nevertheless, if we over-leverage without proper risk management, we are doomed to ruin our account in a few weeks, if not months.
 
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