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Life is compromise. I was a floor trader for more than five years, yes I did make
some decent money, the problem is its killing me, the high blood pressure, stress
and fainting spells, my body is signalling me, it can't take it anymore. Also may
have burnt out,as William Eng said, 34 years old is an old man on the floor.( I
stopped at 31) The only advantage I see for floor trading is the
experience,understanding of the market's actions, but maybe just a stepping
stone/stage for off floor trading ultimately.
Try to develop method/techniques/systems that can be profitable taking into account
the transaction costs (of course as low as possible off floor),slippage in
execution.
Because if it can't, maybe your system/method is not really that good in capability
to
harvest from the market.
Yes, doing your homework to develop your method is the most important (there's no
other way, and yes, the road is hard and long) and developing steel discipline as to
unemotionally trade it.(Confidence in your method)
Aside from adequate capital,nothing achieved/learnt/grown/improved if you got thrown
out too early in the game. Trade small at first till you get the rhythm. Successful
traders
are very patient people compared to the general population at large, (from what I
have
observed). Very cool.
Don't think just going to the floor (or forcing yourself)is the only way to improve
your results, adjusting/improving your methods should do it.
My 1/4 cent of market/trading reality..................
Timothy Morge wrote:
> Pete:
>
> You might find the trading standing on the floor is not for you--it is
> entirely different than screen and phone trading--not better, not worse,
> but different. And if you choose to go to a floor, there may soon be
> than one way to get member's fees--Open outcry badges and member
> electronic trading badges.
>
> Personally, after trading both on and off the floor, I find trading
> off-floor better for me. But I did come away with a much greater respect
> for those that make a living day after day in the pits.
>
> Best,
>
> Tim Morge
>
> HeyPeter wrote:
> >
> > Hey Scott
> >
> > Gotta agree with you on how critical transaction costs are to successful
> > DAYTRADING. I have been daytrading for about 2 months, and am finding
> > that even though my gross p/l is positive, when commission is taken into
> > account the business becomes marginal.
> >
> > A while ago, it was mentioned here that the 90%losers/10%winners rule
> > came about from some study at a brokerage house. In it they mentioned
> > that although gross of transaction costs the accounts made money, after
> > adding in commission, the profits were swamped and most (90%) LOST
> > MONEY.
> >
> > In daytrading, this is gonna apply even more - that's why I am trying to
> > get on the floor of an exchange where I pay a clearing fee of about $2,
> > and no commish c.f. a retail rate of $20-$30 a round turn.
> >
> > I believe in the long run $20 commish is unsustainable for most people
> > trying to daytrade and pick the bones out of smaller price swings
> > intraday, assuming you are reasonably active. (And I haven't even
> > mentioned slippage yet . . .)
> >
> > >From where I am standing, the only group getting rich from daytrading
> > are the brokers.
> >
> > If you want to daytrade for a living and to give yourself the best
> > chance of success then you must,
> >
> > GET YOUR TRANSACTION COSTS AS LOW AS YOU POSSIBLY CAN . . .
> >
> > (Alternatively, ask yourself at what commission rate would your
> > daytrading business stop becoming marginal. If you cannot get such a
> > low commission rate from your broker then don't daytrade!)
> >
> > Penny-wise (hopefully pound-wise too ;-) Pete
> >
> > Scott Hoffman wrote:
> > >
> > > When I daytraded the NYFE back in 1997, I found that although my strategy
> > > had a 25% edge (think 62.5% win, 1:1 payoff) *before slip/comm* after
> > > slip/comm it was a breakeven deal at best. And that's not counting datafeed
> > > / hardware costs. Articles like this never really give the true impression
> > > of just how difficult it is to consistantly make money daytrading. The
> > > transaction cost barrier is the killer. Maybe the barrier in the equities
> > > world has dropped so dramatically that it may actually be feasible. On the
> > > other hand, I posted an article from the WSJ a few months ago about Block
> > > Trading's (a daytrading outfit where you go to there office, use there
> > > equipment, pay them a fee) demise indicating *not one* of their clients made
> > > money. Be sure to be skeptical of casual statements of profitability.
> > > Anybody can say anything. And our human nature is that the more we *want*
> > > something to be true, the less objective - or should I say "the more
> > > foolish" - we become in judging truth from fraud.
> > >
> > > Scott Hoffman
> > > Issaquah, WA
> > >
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