Quote: (12-28-2016 08:26 PM)chakalaka Wrote:
I´ve traded for a while. And started doing the math. By investing 100k in trading. And making a return of 30% in one year. The return I would get 30k. By dividing this by 12 month. It would be 2500$/month. To earn this I would have to spend 8-10h/day monitoring the market, news, checking company metrics.
So do you need to risk 100k and work 10h/day to earn 2500$/month? With the extra risk of losing the money in a bad decision? Because it´s active income. Passive income would be an index of 5% return.
It didn´t made sense to me.
This is simple logic I made. But can be wrong. Due to inexperience or other reason. It´s only worth it for higher numbers. Most people I know who trade do it for the fun. Like going to a Casino. Or betting in sports. In order to do this professionally I would have to either put up a higher number in the market or manage other people´s money and mine at the same time.
Was told you don´t create wealth in the stock market. Only accumulate.
The difference is the time the pros invest is in identifying/coding/backtesting/live testing strategies and then they are implemented as part of an automated trading system. These desks are running all sorts of strategies at any given time. Maybe some part discretionary/part automated. You need the infrastructure, financial backing, IT support, programmer support, and trading support to implement this (in case crazy news drops). You'd be surprised how little edge certain trading firms actually have versus what they claim to have even when doing all of the above (I know from experience). In my opinion machine learning will kill off the vast majority of the remaining intraday trading opportunities for all but the best in the space.