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Books, connections, brokers to help you make $4million a year

(Last Updated On: May 9, 2010)

Here is a conversation on reddit.com which pretty well inspired me tostart thinking about blending my knowledge of technology and financial investment. This was pretty inspiring where an indie software engineer launched his own business. He is now clearing

Source: http://www.reddit.com/r/IAmA/comments/9s9d7/iama_100_automated_independent_retail_trader_i/

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Question: You said that last year you made a little under 7 figures net. According to $800,000 at $.02 a trade would make for $4,000,000 gross. Are your expenses/taxes really that much? Are one of those numbers misleading? Or is my math wrong? (I wouldn’t put it past the last one. This is why you are making money doing this and I am not.) Edit: based on 250 market days.

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mejalx [S] 2 points3 points4 points 6 months ago[+] (0 children)

mejalx [S] 2 points3 points4 points 6 months ago[-]

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Yes, those numbers were for last year. I’ve since steadily been trying to ramp up my volume and am now at those levels. Also, that is round trip volume (which determines the commission rate I pay), so cut that in half.

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jdk 2 points3 points4 points 6 months ago* [+] (6 children)

jdk 2 points3 points4 points 6 months ago* [-]

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What are those lessons?

Also, what books would you recommend?

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mejalx [S] 16 points17 points18 points 6 months ago* [+] (5 children)

mejalx [S] 16 points17 points18 points 6 months ago* [-]

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Early on, I was in nasty drawdown period and I was having trouble figuring out what was off. I made the same mistake virtually all traders make, I caved to the vast collection of trading psychology books. When the guy mentoring me found out what I was reading, he gave me the following gem: Only pikers worry about psychology, either you have an edge and you exploit it, or you don’t have one and you lose and chase every other excuse.

Trading and Exchanges

Options, Futures & Other Derivatives

Option Volatility & Pricing

Volatility Trading

Dynamic Hedging

99% of finance books are garbage, but those are the ones I thought helped me in some way or another. There’s also plenty of interesting research papers if you’ve got access to some databases.

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levytation 0 points1 point2 points 6 months ago[+] (0 children)

levytation 0 points1 point2 points 6 months ago[-]

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Thanks for the tip on Trading and Exchanges and Volatility Trading. I’ve read the others and learned a lot so I can only assume that those two are great as well. Natenberg was especially useful.

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brum_3 1 point2 points3 points 6 months ago[+] (1 child)

brum_3 1 point2 points3 points 6 months ago[-]

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I am still trying to see the forest through the trees. I have MSEE signal processing might help? I started reading trading and exchanges. To start. 1. to have an incredibly experienced trader teach me the ropes

How do you get this?   accel learning curve  How?

  1. does it come down to
    Research – Model/Strategy’s that have EDGE – Automate – Tweak? Edge – exploit till well runs dry
  2. Research – develop model is everything? Books? What open source stuff? Thanks!

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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  1. Contacts and luck. You have to be willing to ask some people and hope that they have an interest in you and what you’re capable of.
  2. Yes. Idea -> Research -> Prototype -> Test -> Implement -> Forward test in real world -> Evaluate performance -> Stick it into trading portfolio or abandon.
  3. See my other posts.

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[deleted] 0 points1 point2 points 6 months ago[+] (1 child)

[deleted] 0 points1 point2 points 6 months ago[-]

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I’d love to have a few people to bounce ideas off of and to get more perspectives.

I run investingwithoptions.com the email’s on the about page.

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vanchunks 4 points5 points6 points 7 months ago[+] (11 children)

vanchunks 4 points5 points6 points 7 months ago[-]

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What platform do you use?

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mejalx [S] 6 points7 points8 points 7 months ago[+] (6 children)

mejalx [S] 6 points7 points8 points 7 months ago[-]

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I’m using a patched together platform composed of a tick database, message queue, and my own trading framework along with a simple order management system. I’m connected to two brokers via FIX and get data from DTN NxCore.

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satsumace 1 point2 points3 points 6 months ago[+] (1 child)

satsumace 1 point2 points3 points 6 months ago[-]

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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