Hi there, I have been daytrading and making consistently about $1000 a day for the past year.Now I have completed my MSc in statistics from a wellknown US school. Should I keep daytrading and travelling or start to work ?

Peregrine,If that is the case you have made (net of Tax) about 125k plus/minus You could probably get a job at a prop shop trding with that record, but I am not sure if they would give you enough capital for it to be worth your while.

QuoteOriginally posted by: EscapeArtist999Peregrine,If that is the case you have made (net of Tax) about 125k plus/minus You could probably get a job at a prop shop trding with that record, but I am not sure if they would give you enough capital for it to be worth your while.You mean worth his while in comparison to joining an IB Associate program, perhaps making $150K pre-tax working a 60 hr week?Peregrine, making $1K per day consistently is pretty damn impressive. How long did have you been daytrading and how long did it take to become consistently profitable?

QuoteOriginally posted by: WannaArbPeregrine, making $1K per day consistently is pretty damn impressive.It's a little bit of a peculiar story. I am skeptical that you can get a masters from "a wellknown US school" taking night classes, or that you can trade "consistently" taking day classes. Also, even an idiot would realize that you shouldn't trade off monthly profits in favor of daily consistency. If he is making $1000 a day consistently, he should reinvest some of those profits and make $3000 a day less consistently. Even the tiny micro-scalping strategies can endure an increase in capital, if at your current level the profits are consistent.Plus, people throw money at me even when I lose money trading, so this guy's first order of business should be hiring a secretary to handle all the calls.

... I have been daytrading for the past few years too. Currently, I am short in mondays and wednesdays. I also have a relative value trading idea on sundays and saturdays, as I think saturdays are overvalued while sundays are undervalued. Yea right mate, you have made 'consistently' 1000 quid a day and ask ... anyways ...

QuoteOriginally posted by: yaourt... I have been daytrading for the past few years too. Currently, I am short in mondays and wednesdays. I also have a relative value trading idea on sundays and saturdays, as I think saturdays are overvalued while sundays are undervalued. Nominated for the best explanation of day trading. Ever.

QuoteOriginally posted by: peregrinecapHi there, I have been daytrading and making consistently about $1000 a day for the past year.Now I have completed my MSc in statistics from a wellknown US school. Should I keep daytrading and travelling or start to work ?You should absolutely not start to work. This is a fabulous business and you should scale it up. If it fails in a few years, then go back to school Harvard MBA or Berkeley stats phd and then look for a job. But now is not the time.At 250k a year, you need to think about this like a business, which is what it is.What is the capital employed for day trading? What is the ROI? What is the CVAR? Risk of ruin?How much can the strategy scale?QuoteIf that is the case you have made (net of Tax) about 125k plus/minusNot really. I am not a tax professional, but off the top of my head, if you are self employed and make 250k a year, you can get away with paying very little in taxes. Firstly defer taxes on about 50k by maxing employee and employer contributions to a 401k. Then pay yourself a small salary, something like 75k and say it is commensurate with your experience, and leave the rest in the name of Peregrine Cap. (Surely you are not trading in your own name?) Most expenses can be converted to pre tax money, eg, that condo that Peregrine cap rents for you, those laptops that Peregrine cap buys for its employee, that 4 day trip to Hawaii to meet clients, interview prospective employees and look at potential offices - do spend 2 hours a day doing each of those and keep documentation for the same. You get the idea.Get a competent accountant and tax attorney and have them on retainer.

QuoteOriginally posted by: ArthurDentAt 250k a year, you need to think about this like a business, which is what it is.What is the capital employed for day trading? What is the ROI? What is the CVAR? Risk of ruin?How much can the strategy scale?The other question is how time dependent is the strategy? What worked in the last year may not continue to work, and you need to look carefully at where your profits really came from? Did it come from market volatility? A generally rising market? The stock market has got up about 30% recovering from the crash, but it can't sustainability go up another 30% indefinitely. I'd do some back testing to see how the strategy works in other economic situations.Also you need to make sure you get your accounting right. People have a tendency to remember the situations where they make large gains and forget slow losses.

QuoteOriginally posted by: peregrinecapHi there, I have been daytrading and making consistently about $1000 a day for the past year.Now I have completed my MSc in statistics from a wellknown US school. Should I keep daytrading and travelling or start to work ?Grocers and accountants talk about absolute profits. In finance we talk about (relative) returns.

Actaully, since I don't pay any commissions, I have to give up 20% of my PnL to my DMA broker, so my net-PnL is something like 200k. I trade using a system based on simple statistics/economic logic in the morning (VB coded) and do some scalping on names like BAC/WFC on 10000shares during lunch time, then call it a day by 1pm. Thanks for all your comments and bad jokes. I have saved up 100k+, so am planning to travel to Southern France/Italy and trade from the hotels for a couple of months then decide on my future plan. I don't really care whether I work for goldman or morgan or burger king as long as I am living a good life.

QuoteOriginally posted by: ArthurDent[/iQuoteIf that is the case you have made (net of Tax) about 125k plus/minusNot really. I am not a tax professional, but off the top of my head, if you are self employed and make 250k a year, you can get away with paying very little in taxes. Firstly defer taxes on about 50k by maxing employee and employer contributions to a 401k. Then pay yourself a small salary, something like 75k and say it is commensurate with your experience, and leave the rest in the name of Peregrine Cap. (Surely you are not trading in your own name?) Most expenses can be converted to pre tax money, eg, that condo that Peregrine cap rents for you, those laptops that Peregrine cap buys for its employee, that 4 day trip to Hawaii to meet clients, interview prospective employees and look at potential offices - do spend 2 hours a day doing each of those and keep documentation for the same. You get the idea.I registered an entity in foreign jurisdiction and trade under its name. I didn't pay a single dime to UncleSam.

Quote [..] so am planning to travel to Southern France/Italy and trade from the hotels for a couple of months Where can I apply?

>> I registered an entity in foreign jurisdiction and trade under its name. I didn't pay a single dime to UncleSam. I think we found the flaw in your strategy. If you are a US citizen this is called tax evasion.

QuoteOriginally posted by: peregrinecapActaully, since I don't pay any commissions, I have to give up 20% of my PnL to my DMA broker, so my net-PnL is something like 200k. I trade using a system based on simple statistics/economic logic in the morning (VB coded) and do some scalping on names like BAC/WFC on 10000shares during lunch time, then call it a day by 1pm. Thanks for all your comments and bad jokes. I have saved up 100k+, so am planning to travel to Southern France/Italy and trade from the hotels for a couple of months then decide on my future plan. I don't really care whether I work for goldman or morgan or burger king as long as I am living a good life.Are you having a laugh? Is he having a laugh?

yeah, but france has higher taxes than US. Interpol will be after you.