Becoming wealthy from trading, is it possible?

Mps721's picture
Rank: Orangutan | banana points 312

After learning what trading with personal money entails, can one make serious money while still applying money management and considering all of the other factors like drawdown, etc.? I am not talking about prop trading or trade desks, I mean with ones own personal capital, I know there are some traders and hedge funds that had produced massive gains at one point (ie Paulson) and now are losing a lot of money. It seems like these types of trades or hedge funds are just taking gambles rather than applying sound money management, so my question is, when trading and applying solid money management could one still become very wealthy from doing so? Or would they be trading for a living but just barely getting by in terms of personal finances?

Comments (36)

Apr 13, 2013

Yes, but it's extremely difficult...

Apr 13, 2013
Martinghoul:

Yes, but it's extremely difficult...

So how does prop trading differ?

Mps721

Apr 13, 2013
Mps721:
Martinghoul:

Yes, but it's extremely difficult...

So how does prop trading differ?

Prop trading is different because of the economies of scale. If/when you're able to significantly lower the cost of leverage, as well as bid/offer, everything becomes easier.

Apr 13, 2013
Martinghoul:

Yes, but it's extremely difficult...

Like if I was able to find a trading strategy that is continuously profitable for years trading my own money, could I start a hedgefund?

Mps721

Apr 13, 2013
Mps721:
Martinghoul:

Yes, but it's extremely difficult...

Like if I was able to find a trading strategy that is continuously profitable for years trading my own money, could I start a hedgefund?

In theory, yes... In practice, there's all sorts of questions and details.

Learn More

Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

Apr 13, 2013

Yes, I know some people that can be the real life example for this.

Apr 13, 2013

Is it possible to become wealthy by going to a casino?

    • 1
Apr 13, 2013
BTbanker:

Is it possible to become wealthy by going to a casino?

I guess but very difficult

Mps721

Apr 13, 2013

Mps721,

Is it possible to golf better than tiger woods? Yes but rare right. The odds of that happening are too subjective for me to answer for you.

Is it possible to make a career as a professional poker player? Once again, yes but rare. However, people do it and the "ones" who do it kill it.

Is it possible for you to rise through to the top of the corporate ladder and become a F500 executive? Yes but once again lol the odds are stacked against you.

My point is this. Yes it is possible from becoming wealthy from trading. Wont happen overnight. Probably wont happen for a really long time to be honest but just like anything else in life, you need to work at it to achieve success in it.

Thats my personal 2cents

Apr 13, 2013
wallstreetballa:

Mps721,

Is it possible to golf better than tiger woods? Yes but rare right. The odds of that happening are too subjective for me to answer for you.

Is it possible to make a career as a professional poker player? Once again, yes but rare. However, people do it and the "ones" who do it kill it.

Is it possible for you to rise through to the top of the corporate ladder and become a F500 executive? Yes but once again lol the odds are stacked against you.

My point is this. Yes it is possible from becoming wealthy from trading. Wont happen overnight. Probably wont happen for a really long time to be honest but just like anything else in life, you need to work at it to achieve success in it.

Thats my personal 2cents

Thank you.

Mps721

Apr 13, 2013
wallstreetballa:

Mps721,

Is it possible to golf better than tiger woods? Yes but rare right. The odds of that happening are too subjective for me to answer for you.

Is it possible to make a career as a professional poker player? Once again, yes but rare. However, people do it and the "ones" who do it kill it.

Is it possible for you to rise through to the top of the corporate ladder and become a F500 executive? Yes but once again lol the odds are stacked against you.

My point is this. Yes it is possible from becoming wealthy from trading. Wont happen overnight. Probably wont happen for a really long time to be honest but just like anything else in life, you need to work at it to achieve success in it.

Thats my personal 2cents

does the same thing apply for prop trading? What exactly does a prop trader do?

Mps721

Learn More

Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

Apr 14, 2013

have you ever bothered searching the board bro? jesus christ

    • 1
Apr 13, 2013
whatwhatwhat:

have you ever bothered searching the board bro? jesus christ

Do you have anything better to do than to criticize people?

Mps721

Apr 14, 2013
Mps721:
whatwhatwhat:

have you ever bothered searching the board bro? jesus christ

Do you have anything better to do than to criticize people?

do you have anything better to do than waste people's time? all of your questions have been answered a million times over on this board. you really asking OMG WAT IZ PROP TRADING?

Apr 14, 2013

it's so much easier if you're trading other people's money

Apr 18, 2013

Possible, somewhat difficult

Apr 18, 2013

Ask Michael Marcus, Bruce Kovner, Paul Tudor Jones, Ed Seykota, etc.

They all made a ton trading

Apr 13, 2013
SamuelClemens:

Ask Michael Marcus, Bruce Kovner, Paul Tudor Jones, Ed Seykota, etc.

They all made a ton trading

Makes sense but are they all cowboys? What I mean is are they just taking bets or are they following money management?

Mps721

Apr 18, 2013
Mps721:
SamuelClemens:

Ask Michael Marcus, Bruce Kovner, Paul Tudor Jones, Ed Seykota, etc.

They all made a ton trading

Makes sense but are they all cowboys? What I mean is are they just taking bets or are they following money management?

They are definitely doing a lot more than just taking bets. Kovner now runs one of the world's most successful hedge funds.

Apr 23, 2013
Mps721:
SamuelClemens:

Ask Michael Marcus, Bruce Kovner, Paul Tudor Jones, Ed Seykota, etc.

They all made a ton trading

Makes sense but are they all cowboys? What I mean is are they just taking bets or are they following money management?

Read Market Wizards.

Best Response
Apr 19, 2013

I'm bored during lunch break w/o any positions on, so I read through this thread for entertainment. Dude you got a great sense of humor. To answer your question and possibly end this thread, my answer is yes and no:

Yes one can become wealthy by trading and No, it won't be you. (Based on the way you think and the questions you ask)

Party's over.

    • 2
Apr 19, 2013
LCYM:

I'm bored during lunch break w/o any positions on, so I read through this thread for entertainment. Dude you got a great sense of humor. To answer your question and possibly end this thread, my answer is yes and no:

Yes one can become wealthy by trading and No, it won't be you. (Based on the way you think and the questions you ask)

Party's over.

Class A twat

Apr 13, 2013
LCYM:

I'm bored during lunch break w/o any positions on, so I read through this thread for entertainment. Dude you got a great sense of humor. To answer your question and possibly end this thread, my answer is yes and no:

Yes one can become wealthy by trading and No, it won't be you. (Based on the way you think and the questions you ask)

Party's over.

lol what makes you think that?

Mps721

Apr 19, 2013

It's possible, but not the best way to go about it. I would suggest running a business instead.

Apr 23, 2013

Yeah, the original one, all the aforementioned traders are in the first 4 chapters. Yes, many macro funds operate on time frames that can go below a day.

May 22, 2013

I'd check out this post from Josh Brown that explains how it's possible to become rich from trading but also how it's extremely difficult http://www.thereformedbroker.com/2013/05/12/advice...

May 22, 2013

Don't just do it for the sake of money. If you want to be a professional, just got to take time + effort + hell lot of persistent

Cross, Hook, Cover than Jab

May 22, 2013

Yes you can become wealthy, although its harder than it used to be. No it won't be through "solid money management." I know some people that still make a killing and some people that haven't been able to adapt over time. I'm talking commodity futures here btw. The guys that still have success leverage themselves using spreads and scale in and out. Basically the opposite of conventional risk management.

May 22, 2013

It's possible as long as you have a lot of time and some skills. It's also great if you start with a lot of capital upfront.

Jan 28, 2014

Start out with a little bit of capital. Learn several strategies. Once you figured out how to grow little money into a bit bigger little money then up your bets. After a bit of time you won't fear the motion of the ocean. It took me about 4 years to get to the No Emotion level. Now I'm in the Just Watching Paint Dry level. All players in this game can contribute something to advance your knowledge of how to play in the game. The do's and the don'ts sometimes are true and sometimes they're false. Only with experience will you learn them. Remember half of these guys make their coin steering you in the wrong direction. TRUST NO ONE but listen to everyone.

Feb 2, 2014

u need thousands of hours on tapes, charts, and fundamentals, and find your style.