Future of Retail Day Trading

[Davis418 2]

This is my first time posting to the forum! Almost done with my 3 months of DAS simulator, and I am getting much more consistent. Not sure I’ll be ready after three months but we’ll see by the end of this month. 

I have one major concern about day trading in general that makes me reluctant to consider this as a full time commitment: what does the future of day trading as a retail trader look like?

I have a very good career and have flexibility that many people would dream of, with excellent income. However, I still don’t feel as free as I would like to be and I don’t like the fact that I have to stay where I am geographically because of a career.  I want to be able to relocate and make my own rules, and officially escape the “rat race”. I’m just afraid that Retail Day Trading wont be profitable in the future due to AI and trading bots dominating the market, which is already beginning to happen. Will there be a day when this is no longer profitable for the little guy? This is the one thing holding me back from looking at this as a full time thing. I work in home mortgage lending, and I don’t see that need or career field going away any time soon..

I would appreciate feedback on this to ease my mind on the longevity of trading as a future career sometime in the future! 

Mike from Dayton, OH

[michaelr30 2]

I'm not a professional day trader and haven't been practicing for too much longer than you, but here's my opinion.

I have a mechanical engineering degree so I only have a little bit of exposure to coding, but there's nothing in my thought process for trading that couldn't be implemented in code.  That being said my previous engineering job I could say the same thing about it.  I was working on finite element analysis for jet engine parts (analyzing parts by breaking them into millions of easy to analyze pieces).  I made the process a bit more efficient for the computer, but that was basically it.  Automation will eventually get just about everyone and everything.  The only thing then is timeframe.

Trading is a particularly lucrative problem for AI to solve with access to the necessary data being very easy, so it'll be only more and more automated.  That being said you're already competing with some computers.  They're only going to get better though.

I'm not sure what exactly you do for home mortgage lending, but that could be more heavily automated in the future as well.

Whether or not you should escape the rat race depends on numerous factors.  For me I quit a job I hated to pursue day trading.  I haven't had the success I was hoping for, but I'm still optimistic on trading.  So I recently got a job where after ~6 months I training, I can trade in the mornings before work.  If you've been able to practice in the simulator sufficiently these last few months  I would definitely keep the job while you switch to making real money.

 

[yamihm0v 0]

Hi in my opinion it will be more organized than now and i think daily trading as a retail trader will not be effected.Because this is considered a big income  for countries that has a stock exchange market.And; also you should know that retail traders like me and you those are like the fuel which gives energy to the stock market and make it dynamics.

[Jason H. 56]

I just read a great article on retail trading success. Not specifically related to algo trading taking over, but worht reading for the insight and reinforcement of what it takes to be a successful trader.

 

https://www.forbes.com/sites/brettsteenbarger/2018/09/30/can-individual-traders-succeed-in-financial-markets/#20f824fb14d7

[NickAbrams 11]

I really like that article Jason H.    It is very optimistic.  I especially like that part where he explains that in Trading, the time we spend practicing and reflecting between trading sessions is as important as the time we spend trading in the morning.  He mentions that athletes spend much more time practicing than they do time in there uniforms competing.   I really like that and I'm going to keep that in mind.  We all focus on trading well, but like athletes, the time we spend training in between the trading days is very important.  Thanks for sharing.  

[Abiel 475]

On 9/10/2018 at 12:59 PM, Davis418 said:

This is my first time posting to the forum! Almost done with my 3 months of DAS simulator, and I am getting much more consistent. Not sure I’ll be ready after three months but we’ll see by the end of this month. 

I have one major concern about day trading in general that makes me reluctant to consider this as a full time commitment: what does the future of day trading as a retail trader look like?

I have a very good career and have flexibility that many people would dream of, with excellent income. However, I still don’t feel as free as I would like to be and I don’t like the fact that I have to stay where I am geographically because of a career.  I want to be able to relocate and make my own rules, and officially escape the “rat race”. I’m just afraid that Retail Day Trading wont be profitable in the future due to AI and trading bots dominating the market, which is already beginning to happen. Will there be a day when this is no longer profitable for the little guy? This is the one thing holding me back from looking at this as a full time thing. I work in home mortgage lending, and I don’t see that need or career field going away any time soon..

I would appreciate feedback on this to ease my mind on the longevity of trading as a future career sometime in the future! 

Mike from Dayton, OH

From BBT Blog: https://bearbulltraders.com/dont-fear-machines-embrace/

[Norm 46]

Trading will of course change over time, as every profession does. What we do didn't exist 30 years ago. Algos might take over more of the market and we may have to change strategies, but there will always be money to be made.

Additionally, ask the guys that were in home mortgage lending in 2006-2008 what they they thought about the mortgage business at the beginning and then the end of that period. The vast majority lost their jobs, never to return to the business.

The only thing that is constant is change.

[MadsFromDenmark 10]

On 10/20/2018 at 6:04 PM, Norm said:

Trading will of course change over time, as every profession does. What we do didn't exist 30 years ago. Algos might take over more of the market and we may have to change strategies, but there will always be money to be made.

 

I agreed with Norm, there will always be money to made. The market will change, just like the world.

You said it to yourself: 
I have a very good career and have flexibility that many people would dream of, with excellent income. However, I still don’t feel as free as I would like to be and I don’t like the fact that I have to stay where I am geographically because of a career.  I want to be able to relocate and make my own rules, and officially escape the “rat race”. 

For me, you said:
I am happy with the income, and my job... BUT: (right now i just don't follow my dream, to do what it want right now.
You will always, have the (experience) for what you have done, you will not lose it, you will lose you job. 
But so what? You can always get a new job, but not the same like you have. 

If you really feel, to try it out, do it. 
But first keep it mind: 
You now need to, make your money on this, so the psychology will be complete different.
You don't have the job, to get a income, now it's your change to do get what you want. And do it! 

If i doesn't go? Just get back to normal, if you stick to your rules, you only lose a little bit of money, and not everything. 

I ask for some weeks ago, almost the same.
And now, i will jump to it.

But i will start with 2 days a week, and see if it works. 
So i don't lose my job, and still have a income. 

But right now, i am need to hunt my dream.
And not let something stay in front of me, not to let it happen. 

Hope you will find it out. 
And have a great day. 
Mads from Denmark.