I look at it like this.....How much money do you want to make......how much education do you need to make that much money?
OK.... some years ago when my son was looking at getting his MBA he noted that the average starting salary of an MBA grad from Harvard was $106,000.00 / year. So how many years of education is required for that salary? Well let's see.....you've got your undergrad work....so 4 year degree....then MBA programs don't want you unless you have some real world work experience (they like to see 4 years)....then the actual MBA program itself ....2 years. So there you have it.....10 years of education and you've got yourself a $106,000/year job.
So.....is the education process for day trading substantially different than it is for an MBA degree? Why would someone who wanted to make $100,000/year spend 10 years getting the education to do it if they could do it for less? This is the lure of trading.....thinking you can take a short cut....get there faster....not have to take the time...money for nothin'...chicks for free... that's the way you do it (no that's a song) anyway I hope you see what I'm saying.
To think that you will be able to earn a CEO's salary without getting a CEO's education is foolish.
So how long does it take? I suppose it is different for everyone but if I had to say a time I think 2-3 years and about $40,000 in "tuition" should do it.
Can you survive the learning curve? Will your money make it till you've figured it out?
Andrew, keep on sim until you have demonstrated to yourself that you have mastered your platform and have developed a trading plan. Then make a case based on your track record why you should start trading live....why it is a good idea to put your hard earned money at risk in the market. If you can not be profitable on sim you will not be profitable live. Don't cheat on the sim. Go small size when you go live.....this is when the real education begins. You've got to have real money on the line to bring the psychological aspect into play.
Good luck my friend......just remember....95% of people who try this fail. Don't be one of them. Don't underestimate the education you need to be successful.
Last edited by Jeff Castille; November 7th, 2009 at 01:43 PM.
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Can you tell us a bit more about your rules.......for instance if there is no stop when do you determine to close a losing trade? Perhaps when you get an opposite signal? Do you just press the reverse button? Is this the same for a winning exit? Just curious.
yroyal, can you also share with us what you consider to be a short range over a long range chart in which you never take a stop? The concept is intriguing to have both day and swing trades although I probably don't have the risk temperment to hold overnight.
I also noticed in a few of your prior charts that a single bar can change color in a trend and then the trend continues. Do you change your position in a quick fashion when this type of thing occurs? Seems like you would if youre only signal is from a bar color change.
Last edited by Zoethecus; November 7th, 2009 at 02:32 PM.