Is 50,000$ Enough to set up a trading account to earn a full time living?

Re-read what I've wrote.
Not the words, but the sense.

And btw, the compounding argument is more a myth than anything else.
Meaning, it works in theory, but in real life (again, I'm referring to trading here), it's another game.

Again, re-read the above.

 

No sir, compounding is the basic principle of finance. Students are taught at middle school or earlier.

There is no absolute distinction of trading vs investing. If I hold 100 MSFT shares for 3-5 days, it can be either investing or trading.

And if I have 100% return on my $50,000, I get a total of $100,000 to use for either investing or trading.

So I do not know what is hard to use that $100,000 for trading. And here is what you just said....

 

Sigh...
Sometimes I'm wondering why I argue in this forum....

 

“This is how some traders can grow from”. And many others go broke or after that go broke. A piece of advice: if

BS. Unless You know what speculation is which I doubt.

 

Tony Oz in his book "Stock Trader" traded a 50K account for a month in the dot-com heyday.

I believe he made 28K that month. He pulled his winnings every Friday, so compounding wasn't a factor.

Yes it can be done. Or maybe just for a short while.

I think Oz finally went broke and quit trading.

 

The people on "Fintwit" I see making big profits are mostly options trading.

 

Many traders have experience, but whether you can do 200% a year are the 1 percenters.

 

We all know this is ET, period.

For the people who read ET, we are not ordinary people who want to earn 10% each year. That is investment. We want 20%, 50%, 100% or more. Of course a lot people take over-sized risk and can't control the risk. That is blow-up.

With hindsight, MRNA has YTD return of 102%. Some others may have similar returns. I do not trade MRNA, but just a hint of what could be done or could have been done. If you day-trade, or use margins, then you could have had more than 100% return. There are other stocks that have YDT return more than 100%. You'll have to find those. Just do not say this is not possible if you do not know how and where to find. Or you blow-up for taking 10x leverage.

I do not know what the performance of the top 5% or top 1% of traders. But if you can't be the top trader, then the 100% or 200% may not be realistic.

I'd advise people read, read and learn. Before make huge statement that would cause problems.

 

Find out why traders fail then don't do that!

 

Traders fail because they have no edge, worse if no discipline and blow up....

That is clear to everyone. But that is not everyone.