hi folks. im looking to get together with some perth traders. keen? i couldnt find any active groups so i created one. just need to do some recruitment
As always this is not advice and DO YOUR OWN RESEARCH
I’ll be really honest with you and repeat what could be found already in a number of places .
It’s a great social experience to start up a trading meetup. It can be good to talk to other people and share war stories. However as I have stated before these thing tend to fail for a variety of reasons.
I am seeing what you are saying and I don’t think you really realise the practicalities of the situation.
I have recently decided to persue a full time career as a trader. This change in career is due to personal circumstances and I am seeking to make an income with a good degree of flexibility combined with a keen interest in this field
Yes it is interesting, yes it can be a successful pursuit , but focusing entirely on trading full time especially given the risks to the personal financial future of the individual and others needing their support can be a risky decision.
To put it in perspective, look at some basic assumptions and scenarios.
Say a person had $100,000 capital to risk.
What does he/she have to beat?
inflation,taxation, transaction costs, risk, ‘the market’/ opportunity cost of capital and opportunity cost of time
Say a 40% return per year. That looks great on the face of it. An amazing return at 40% to have year in year out.
100,000*.4= $40,000 per year.
Now take into account inflation at 3%, the return at a similar risk is 7%
Tax is a bit complex to include and transaction cost should be included in the return already.
100,000*.3= $30,000 per year.
That is a very very very good scenario.
Now change it to 20%
100,000*.1= $10,000 per year.
That is not much for all the time effort and energy it is taking.
Now what happens if there loss that year, that month etc
What happens then.
Is the trader/investor willing to lose 100% of $100,000 or 50% or even 30%. That is a big hit to take for most people.
Now what if the capital is only $10,000 not $100,000
The returns need would have to be astronomical for it to be a full time pursuit.
If one has $100,000 or $200,000 or even $1,000,000 to risk, why risk the financial future in that manner, unless there is competence or it is just a hobby.
One can play around with the numbers all day.
This is not casual employment like mystery shopping or taking surveys or a get quick rich scheme, this is not pulling gold from the end of the rainbow universe.
3 months of meetups and a small capital base will not be enough. If one is already rich, then why not just take it easy and smell the roses.
As time goes by the time wasters on meetup will roll in and roll out.
This is not about being negative or even being right, I told you so.
I’m just saying how hard it can be.
It’s a great hobby but full-time is something else.
I don’t attend meetups anymore they just tend to be for people to socialise.
I hope it all works out.