Advice from you experienced traders

Discussion in 'Professional Trading' started by maxpower, Feb 18, 2008.

  1. Aisone

    Aisone

    As far as many traders here, I'm assuming, this isn't really a 'field' to switch into such as a typical career change, its more something to learn about and then try to apply what you learn (perhaps on paper with paper trades etc.), and if you find you have a knack for it, you might quit your job and trade fulltime. Many have taken the professional industry route and become traders, but that's far from necessary imo.

    The fact that you can understand complex systems in your job can be an asset, but that also doesn't mean if prices are tanking you will have the balls to buy, or if you will be crying uncle and are too afraid to lose more money, and thus become a seller with everyone else (or that you will be disciplined to use stop loss orders, or be disciplined to stick a particular 'system' or approach that you've chosen etc.)

    Find out if you have a knack for it first, and maybe if you have a natural intuitiveness in what you read about the markets and what you observe, then continue to take the next step, whichever that is at the time.

    It sounds like there's no need to put any monetary investment in it where you are at this point since there is so much you can do before quitting a job and trading immediately.
     
    #11     Feb 24, 2008
  2. I was in a similar situation about 1.5 years ago. Ended up leaving automotive industry AS AN ENGINEER. And yes, because of my interest in the trading industy and through hard work, have found great success.

    So, if you have the passion and drive to succeed in trading, you can make it. Don't let anyone tell you differently.

    Ended up joining prop firm where you keep 100% of your profits. Of course, there was a capital commitment.

    I would recommend full time if you can swing it financially. IMO, it is like any other career...long hours, hard work.

    Let me know if you have any other questions.
     
    #12     Feb 24, 2008
  3. I know it is your opinion but FWIW, I had a career as an engineer before switching into trading. I did not have this problem as you describe about engineers being traders.

    I have found great success in this field.
     
    #13     Feb 24, 2008
  4. i005890

    i005890

    I don't know where you are in your trading education, but a good place to start is with the Dan Sheridan web casts on the CBOE web site. He takes a lot of the mystery out of trading and gives you common sense ideas based on limited risk trades with good probabilities. I would also recommend that you open up an account with thinkorswim (TOS). Their software has helped me immeasurably in understanding and analyzing trades. Paper trading with their software is a great way to get a feel for different types of trades. Also go through the chat archives on the TOS web site.

    Whatever you do, start small. In my readings about top traders, I was struck by how frequently they said they will not risk more than 1% on any given position. I am not a top trader (yet!), I risk less.

    I understand your fascination with the markets. They are a captivating analytical and psychological puzzle. I never tire of them and there is much to learn. It takes time, patience and effort as it would for any craft. Don't give up on your day job just yet. It would put far too much pressure on you to trade beyond your skill and knowledge level to score a big hit to "pay the rent," so to speak.
     
    #14     Feb 24, 2008
  5. Cutten

    Cutten

    My advice would be study the markets and play with real money for 2-3 years. Risk enough to hurt, so you feel the pressure a bit, but not enough to hurt really bad if you lose it. I.e. do not risk your life savings. If you have $100k saved up, risk $10k and no more, for example.

    After 2-3 years of trading or investing, you should have enough experienced to have made the basic errors and learned from them, and you may have started to pick up a few of the things that work. You will also have real results to look at and analyse. Then you can make a decision whether to go for it or not.

    If you decide to shift job, consider joining a trading or investment firm. It is much easier to learn from experienced traders/investors than it is to do so yourself. You also get the security of a salary. If you do go it alone, have a maximum loss limit, after which you will quit and go back to working a job. Also have a "time stop" - if you do not have success within say 2-3 years, it's probably not the career for you and you should get back on the job market before your CV turns to cr*p.

    So, don't be afraid to do it, but be prudent too. If you are a real trading fanatic then you will ignore all this and go plunge in anyway - that's fine too, as long as you are prepared to accept the consequences.
     
    #15     Feb 24, 2008
  6. TraderZone

    TraderZone Guest

     
    #16     Feb 24, 2008
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    #17     Feb 25, 2008
  8. TraderZone

    TraderZone Guest

    You sound like the few who made it in the lottery - "works for me!" Unfortunately, it works for almost no one else. You cannot use yourself as a reason everyone else should pile in. The stats for the masses who trade is not promising.

    Anecdotal evidence and testimonials is never a reason to do something.
     
    #18     Feb 26, 2008
  9. I say take a calculated risk and go for it. As long as you can support yourself with savings and you don't burn bridges at your current job you can leave yourself some options if you fail. Set up a plan that will tell you how long you can support yourself, and that will leave you in an OK position should you fail. If done properly, you can give trading a shot without ruining your life --despite what people may tell you now. Dont look back later on in life and wonder what if.
     
    #19     Feb 26, 2008
  10. Arnie

    Arnie