has anyone switched to become a full-time trader and become rich ...

[thisisnotme1212]

if chiu ish full time trader needs to declares incomes and pays taxes?

 

[stanlawj]

if chiu ish full time trader needs to declares incomes and pays taxes?

Easy to answer. Pay tax if you are employed by a company to trade the financial markets.
No need if you are not employed by any company.

Capital gains is non-taxable:
https://www.iras.gov.sg/taxes/indiv...-of-property-shares-and-financial-instruments

 

[stanlawj]

Have been trading as a hobby/interest for quite some time, and it took a while (more than 5 years) to become consistently profitable.

While transitioning to full-time trading been considered , the mental stress it would likely entail might lead to many more trading mistakes and ultimately end up like most other traders.

Eventually you will become too old to be employable. Everyone will come to this stage, trader or not.

The "mental stress" as you envisioned is just about having consistent cashflow to cover very basic living expenses including class C public hospitalisation insurance. The solution is quite simple: a large enough CPF Life or rental property or REITS that pay the cashflow.

Those young traders, I see many of them sell courses as side income. I think they couldn't take the "mental stress" too.

 

[VEF888]

Eventually you will become too old to be employable. Everyone will come to this stage, trader or not.

The "mental stress" as you envisioned is just about having consistent cashflow to cover very basic living expenses including class C public hospitalisation insurance. The solution is quite simple: a large enough CPF Life or rental property or REITS that pay the cashflow.

Those young traders, I see many of them sell courses as side income. I think they couldn't take the "mental stress" too.

The real question is, how many traders can achieve consistent profitability within their first year, whether trading full-time or part-time?

Facing the challenge of generating no income is one thing, but enduring the pressure of depleting financial resources due to trading losses while having outstanding loans and a family to support is an entirely different level of stress.

Given these conditions, it's no surprise that many traders can't sustain themselves long enough to reach consistent profitability.

 

[stanlawj]

The real question is, how many traders can achieve consistent profitability within their first year, whether trading full-time or part-time?

Facing the challenge of generating no income is one thing, but enduring the pressure of depleting financial resources due to trading losses while having outstanding loans and a family to support is an entirely different level of stress.

Given these conditions, it's no surprise that many traders can't sustain themselves long enough to reach consistent profitability.

There is a phase called the "Transition Phase" for new trader into full-time trader.
Everyone has to go through the fire.
Some will survive, some won't.

But the best is to have backup plans, eg as I mentioned, CPF Life, rental property, working spouse/children that can provide extra income support while going through transition phase for as long as it takes. I'm in my 4th year of transition phase.

 

[wongminmin]

I find that correlation/anti-correlation trades are the easiest to follow at higher time-frames. eg. silver is correlated to gold but with a time lag. I've been holding my leveraged silver position for 6 weeks and counting. If anything bad happens to gold, I'll be able to cut loose early.

beside silver, any others that correlation/anti-correlation with gold?

 

[ckt1978]

beside silver, any others that correlation/anti-correlation with gold?

dollar lor. go further got other metals . recent bull is copper.
platinum looks like next.

 

[stanlawj]

beside silver, any others that correlation/anti-correlation with gold?

crude oil (& energy producer companies) but a much much longer time lag.

 

[wongminmin]

dollar lor. go further got other metals . recent bull is copper.
platinum looks like next.

yes strength of the dollar.
When gold in demand, other metals demand will also increase. So we use gold as the main reference for other metals.

 

[stanlawj]

dollar lor. go further got other metals . recent bull is copper.
platinum looks like next.

yup... I think platinum is the next one after silver. Copper already ran up hard (Goldman Sachs is pumping copper).

 

[MistaP]

I am an ex professional trader and fund manager. I can honestly say that 99+% of people who think they can "trade" full time end up losing most or all of their money sooner or later. In this case "trade" means short term buying and selling, and often on margin. Anybody who says they trade on margin and have been doing so for years while consistently making profits - is a liar. A good trader may be right 55% of the time, but they can still be wrong 10 times in a row. Getting to 55% is the skill part, the rest is random noise you can't control. Investing, on the other hand, where a person buys stocks and holds them long-term for dividends and/or capital appreciation, is a different game. It's central to how Warren Buffett and many others have built fortunes. The slow and steady investing tortoise almost always beats the trading hare in the long run.

 

[stanlawj]

I am an ex professional trader and fund manager.

Ex? You turned full-time to invest/trade your own account?

 

[drkcynic]

One must be very disciplined and focus, in all aspect of your life.

Those people who are normally very nua, but claim to become dragon when they trade, you hear them bullshlt only.

You want to be successful in anything, the good habits you have cultivated is of the utmost importance. You cannot just turn it on or off. Human nature doesn't work like that.

A good trader will usually be equally successful in their careers, because of the similar good habits they have.

 

[iridiot]

One must be very disciplined and focus, in all aspect of your life.

Those people who are normally very nua, but claim to become dragon when they trade, you hear them bullshlt only.

You want to be successful in anything, the good habits you have cultivated is of the utmost importance. You cannot just turn it on or off. Human nature doesn't work like that.

A good trader will usually be equally successful in their careers, because of the similar good habits they have.

Do you trade?
Ate you disciplined and focused?
Are you equally successful in your career?

 

[iridiot]

I am an ex professional trader and fund manager. I can honestly say that 99+% of people who think they can "trade" full time end up losing most or all of their money sooner or later. In this case "trade" means short term buying and selling, and often on margin. Anybody who says they trade on margin and have been doing so for years while consistently making profits - is a liar. A good trader may be right 55% of the time, but they can still be wrong 10 times in a row. Getting to 55% is the skill part, the rest is random noise you can't control. Investing, on the other hand, where a person buys stocks and holds them long-term for dividends and/or capital appreciation, is a different game. It's central to how Warren Buffett and many others have built fortunes. The slow and steady investing tortoise almost always beats the trading hare in the long run.

How did you get your data of 99%?
Why are you an ex?

 

[drkcynic]

Do you trade?
Ate you disciplined and focused?
Are you equally successful in your career?

I don't trade for a living.

 

[iridiot]

I don't trade for a living.

Which market were you in and any advice you can offer to general public without breaching any NDA. Also are you trading as a hobby now ?

 

[MrClubbie]

The real question is, how many traders can achieve consistent profitability within their first year, whether trading full-time or part-time?

Facing the challenge of generating no income is one thing, but enduring the pressure of depleting financial resources due to trading losses while having outstanding loans and a family to support is an entirely different level of stress.

Given these conditions, it's no surprise that many traders can't sustain themselves long enough to reach consistent profitability.

it's better to be trader at banks and trade with other ppl money,
or investor at swf and play with tax payer money without due dil

 

[drkcynic]

Which market were you in and any advice you can offer to general public without breaching any NDA. Also are you trading as a hobby now ?

I don't have any advice to offer on trading for a living. In fact I advise against it. The very onset of a person mentality should be, make sure you can hold down a job, and develop good habits like reading alot and being very disciplined. That person can then consider whether to take on trading full time, leveraging on those good habits to work very hard, and not hoping to become rich with little to no effort, which seems to be the general perception of trading these days.

 

[HelloEllo]

2 years back I was considering as such. But luckily moneymind pros advise better not to do active trading and just buy and hold, especially S&P. And true enough it did work since active trading is quite nerve racking..heck even s&p down 10% the losses can be steep, what more stocks that easy crash 20%.

All it takes for a moment of folly to really go into a bad position.

Going up is hard but going down easy..
So eg 10 dollars a 10% drop will make your investment 9 dollars. A 10% increase will only rever 9.90 so still lose. You will need a greater increase every time to cover the loss.

Trading stocks is like swimming against the current. Every high and through has to be played rightly. Trading the entire market is like riding a boat, go where the current take you.