SMB Blog: The question before us

http://www.smbtraining.com/blog/?p=1755

Can You Make it as a Retail Trader?

August 15, 2009 11:17 am Bella Bella's Blogs, General Comments

I received this email from a reader of our blog. I thought we could discuss……

Hi, this is Ivan in NYC(Bulgarian immigrant) – regular reader of the blog. I’m a retail trader – relatively a newbie.

Although, I can not formulate particular trading strategy just by reading the blog I enjoy reading it and find it useful.
I would like to ask you about your honest opinion and advice to the retail traders like me – what are the main disadvantages we have compared to the equity firm traders?
What honestly do you think are retail trader’s chances to be consistently profitable in swing and day trading?

Thank you for sharing and Good Luck.

Bella Responds:

Trading is probably the most difficult thing you will attempt in your life. It is like trying to join an exclusive country club- they do not let everyone in, and they don’t let everyone stay. But more are capable of becoming a successful trader than you may think.

There is this outdated bias that you must work at a big bank, live in NYC, and have millions behind you to succeed. This is simply not true. Technology has opened the markets to the masses. Trading platforms, like LightSpeed, with direct access to the markets are available. Charting software is simple to find. Blogs with exceptional education are prevalent, many like this blog for free. Now we have StockTwits TV, a tremendous educational trading resource. Training programs are offered for those looking for help to become a professional trader. With 30k you can open a retail account (you will also need capital to survive the learning curve). Now anyone with a passion for trading, the desire to pay the price necessary to succeed, and some capital can compete.

But these are some pretty big ifs. Are you truly willing to pay the price? Will you work on your game everyday? Or will you bail as soon as things get a little tougher than you expected? Will you ensure you receive the proper training? Or will you just read a few charting books and conclude that this all the training you need and then foolishly attack the markets? Is your passion truly for trading? Or do you think trading would just be something cool to try? Do you have some capital to trade your own account and survive the learning curve? Or are you under-capitalized and just hoping that you will start making money on Day 1?

Technology has opened the markets to us all. Can you become a successful trader? I don’t know. But I do know that it is entirely up to you.

Best of luck with your trading! Don’t forget to follow us on Twitter!