Registered: Oct 2010
12-31-10 03:48 PM
Quote from Laissez Faire:
I was not sure if I should let this decision be influenced by the public opinion, but I`ve decided to think out loud and ask for some guidance. I`m sure many of you have been in the same place.
Entering the holidays, I had finished my first two months of live futures trading (ES contract) in addition to working a full-time job. Living in Europe, this allows me to trade the afternoon session in the US markets, while missing the open of the session.
Needless to say, this combination is very exhausting, especially since I sit up late with my post-analysis after the close and sleep way less than I should. My daytime job is also fairly demanding. I was very tired entering the holidays.
As for my trading, after some initial success, I`m now down $3000, much of it due to a terrible mistake on Fed day (QE2) and swinging too much size early on. In spite of this, I feel fairly confident in my abilities to read the market and I`ve improved immensely since I went live. I`ve spent the last two years studying the markets (after my first failure, knowing nothing back then), so I should be fairly prepared for the task.
However, the truth is that I have lost money and I need to re-evaluate things going forward from here.
I fear that if I continue like I`ve done, it will be very hard to achieve decent results in my trading. Much because I miss the open and potentially the best moves of the day, but also because it give me less time for analysis and preparation and also the fact that my day job tires me physically and mentally.
On the other hand, the reason I`m working a job is that I need to pay bills like everyone else. On the flip-side, my skills are in demand and I have a decent reputation so I will probably get a new job (or my old job) pretty quickly, if my trading does not work out.
Considering that I need to change course, I see the following alternatives right now:
1) Give notice that I`m leaving and fulfill the last two months of my contract working long days. I should probably be able to save $7000 by then. That should cover 2-3 months of living expenses. Start trading full-time in March.
2) Negotiate a deal where I resume my current job, but reduce my hours by 40-50%. This would allow me to trade full time 2-3 days of the week in addition to the afternoon session on the remaining days. Having some savings, I should be able to cover my expenses for a while, provided I live frugally.
If I can negotiate such a deal, I`m thinking that a reduced day time job would be my best bet as opposed to quitting completely.
Thanks in advance for any good ideas.
I am and I WAS once in your situation. I did quit a $90K plus job after only few months of sim trading, only to FAIL (according to the SOCIETY) I lost about 10K in trading and 5 months of unemployment cost me 40K. In my case I took it well, I learned few great lessons and for the last 2 years I have been glued to the screen at my work. I watch the market open to close and trade now and then. Making few thousand dollors a day is not a dream but very much achievable. I am going to quit my job once again. SOON!!! Below are few pointer for you.
- You need to have expenses for atleast for 6-10 months. Trust me as soon as the that direct deposite stops hittin your a/c, after 1 month you will see the effect. It has psychological effect on your ttrding. Your NEED to make money will keep you on the tilt always. you WILL question your own descision every day and would either start taking too much risk or would not be able to pull the trigger.
- I am not sure if ES or for that matter any futures trading is good for any beginner. for the resons that you are leveraged too much and they do not show strong trends (intraday) for the most days of the month. Just take the last few weeks of ES slow creep-up. My recommendation is to trade stocks for the start, small size and always... Size in when you have a winner. Cut the loosers early
- Try to work with a Prop firm that will absorb your losses and give you a decent cut in profit. you do not want to be in a workplace that Frustrates you at the very core.
- If possible, take a Leave of Absence for 2 months and trade at a prop firm. DO NOT sim for more than a few days. small sizes at the beginning as always.
- 2 -3 yrs of screen time is usually enuf to gather "INSTYNCT" about price behaviour. Furthermore, your confidence in your readings in key, you should be able to pull the trigger whn needed.
- Last but not the least. Do you FEEL PAIN/ Frustration/ Anger when you take a loosing trade or its JUST A NUMBERS game for you ??? This is not key for a 20 yr Old starting their career in Trading. but for you who is going to put a lot on stake - it is a must that you UNDERSTAND you are going to be a Professional Gambler. Yes oFFcourse with better than casino Odds !!!