for DT, I guess trading future (or major ETF) is more stable than trading individual stocks.
For example, if your salary is $120k ($10k a month), and you wanna quit and do full time DT instead, basically you have to make 20% more to cover health insurance, retirement benefit, etc. That's about $144k.
There are 2 weeks public holidays a year, and certainly you need vacation time as well, say 2 weeks. Now you have 48 weeks left.
You need to make $144k/48/5 = $600 every single trading day. It's not hard, but it's not easy also.
For future DT, you don't need that much capital, I guess the margin requirement is $2k for each contract (ES/YM/NQ), much cheaper than stock trading.
to biorjin: 10k is even not qualified for DT. will it be different for option trader?
to ppteam: in order to trade futures, the account size has to be over 100k, doesn't it?
原帖由 ppteam 于 2008-6-23 22:32 发表
for DT, I guess trading future (or major ETF) is more stable than trading individual stocks.
For example, if your salary is $120k ($10k a month), and you wanna quit and do full time DT instead, bas ...
plus ESPP, flexible spending account... lots of benefit...
No, your future account doesn't have to be more than $100k.
but I don't think the current market environment is good for future trading beginners. It's easy to double or lose 50% in short time.
starting fund is important, but its no critical. a lot of real HHs built up millions with humble beginnings. for instance, PSP dude said he started it out with lilo more than 10k, and made that into 10M in about 3 years i guess.
For example, if your salary is $120k ($10k a month), and you wanna quit and do full time DT instead, bas ...
ppteam 发表于 2008-6-23 21:32
Another factor: you don't need to pay social security +medicare tax (~10K/year). I don't know, maybe there are some future benefits if you pay those taxes.
Your short-term capital gains tax rate will equal to your ordinary income tax rate. so no tax relief there.
I dug up this old topic, because my company is planning another round of layoff. Sigh....
In today's job market, you maybe be forced to 全职炒股. But when you have a job, trading stock is only a supplement income, 小赌怡情. When trading is your only source of income, then it's tremendous pressure to make profit, this pressure may affect your judgement and performance.