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I've been a professional trader for 13 years - now running my own brokerage
firm & CTA . I have worked with some of the best traders & investors
(worked under Peter Lynch, John Neff & Paul Hondros in the early 90's). I've
worked fat Merrill, Fidelity & Vanguard in portfolio and mutual fund
trading/management. My family has owned a seat on the Philadelphia Stock
exchange for 5 generations with my Grandfather running the trading business
for four decades. My lifetime friends are now partners at Susquehanna -one
of the largest privately owned market maker in the world. I've been on the
floor as well as behind the screens - posting double digit positive returns
with limited drawdowns -so needless to say I know at least a little bit to
comment here.
I have never known a successful trader who didn't work those AT LEAST those
hours a week!
Sure - even a floor trader may only stick around on the floor itself for 30
trading hours - but after going to the gym 5 days a week - they're right
back looking at charts, volatiltiy skews, cash flows, business & world
news - looking for market influences - studying current market conditions
and aligning an ever changing trading plan besides meandering over short &
long term charts on multiple postions that make their radar screen.
I could consider a successful trader someone who consistently can return 20%
net annual returns for 5 years straight with less than 15% maximum peak to
valley drawdown. Historicaly 5 years typicaly completes a business cycle -
thereby showing several different market conditions to trade in. That may
take several trading portfolios going on at once - not to mention numerous
positions. If you have one in mind - please let me know since I would then
consider giving him all of my money and learn how to swing a golf club the
right way instead of swing it like a baseball bat!
Strategy ideas successful traders look at (just an example!!!!)
ie) 45 day rolling option credit spread strategy on the S&P futures, S&P
contract support/resistance pivot point day trading strategy, Oddball for a
position trading account, 20 period MA intersecting 50 & 89 period moving
averages for position trading of 30 individual stocks possibly with a
covered call writing strayegy, etc......To create the right type of
portfolio and trading strategy takes constant reworking and analysis.
That's not just staring at screens which in fact at times - many traders
waste too much timje in front of; the reason: no one can predict the future
nor price movement. All we can do is play the "probabilities" - and that's
alot of work with number crunching.
Then throw in creating "show me" indicators or system writing programmmed
into TradeStation or C++ to backtest -then do forward-walk analysis to test
viability. From there implement game theory strategy based on probabilties,
risk and cost analysis you are only then ready to even begin putting your
money into it.
I could go on & on & on & on but I think you catch my drift. I know that
several of these main contributors to this list work morning noon & night
for decades on their trading and are all for the most part - very successful
(they've been my clients). I've also known begineer traders who spend a ton
of dough on TradeStation/computer set ups in specially designed "trading
rooms" in their $ million dollar homes that initially hit the cover off the
ball for 7 months - trippling their money only to have it all ripped out of
their hand in less than a day. The market takes no prisoners in the long run
and if you believe that you will become a successful trader working less
than 50 hours a week on your game plan and your ideas - I look forward to
being on the other side of your trades - at least for the next few years
until you either quit or begin to work a little harder at it.
Mike
----- Original Message -----
From: "Alexander" <alexander@xxxxxxxxxxxxxxxxx>
To: "Omega List" <omega-list@xxxxxxxxxx>
Sent: Thursday, July 11, 2002 10:16 AM
Subject: Work 50-70 hours a week
> Color me lazy!
>
> This month's Active Trader magazine has an article, "A Trader Checklist."
It
> says, "In most cases though, being a successful trader requires anywhere
> between 50 and 70 hours of work per week."
>
> Doing what?
>
> The active markets are only open about 30 hours a week if you stare at the
> screen the whole time. How much "study" does it take before you learn
something
> simple that you feel comfortable with? Then what? An hour a day reading
trading
> books and magazines to see what other people are playing with? It takes 10
> seconds to put on a trade and 10 seconds to close a trade. It takes 10
minutes
> to figure out where to get in, where to get out wrong and a target. Every
> software and web package has alarms.
>
> I'm just a beginner and maybe a fool but just what are you experienced
> successful people doing all that time? Or does that 50-70 hours include
yoga,
> watching daytime TV, emails to friends, washing dishes, web surfing,
making
> dates, clipping toenails?
>
> alexander the lifestyle-challenged
>
>
>
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