My first thought is that having a spouse with a decent income would be a significant help, providing a safety net. But I also know from many people who start their own businesses, they say if you have a family it makes it significantly more difficult. What do you think?
SIGNIFICANT HELP This is one area that so many new traders screw up on. They hear experienced traders, and think when they start that out of the box, they should be trading, and drawing income from their portfolio. Which is nuts. Experienced traders get to that level only after years of discipline and patience. To try to trade out of the gate, and draw income from the portfolio, and learn trading? It's nuts. It really is. Heck, fees are charged by firms ... for income. No professional likes to (he may, but he doesn't like to) take money from his portfolio. That's his pile of money that is to be "grown" over time. Because experienced traders know that with the slightest bit of drawdown, and then, on top of that ... taking money from the account? It's almost mathematically guaranteeing failure over time. While cutting your chops, and getting started trading? Other income is vital. Be it fixed income strategies that are providing income, or spousal income, or something.
While it is a significant help initially, you want to make sure you have a plan for how you are going to contribute financially, how much time you think it will take you to get there (and then double it) and also an exit plan if things don't go your way. Life happens during the course of this plan, so you need to have some flexibility. Also make sure the spouse is fully on board with what you are doing so that there are no bad feelings if you hit a drawdown or if things don't go as planned.
Well said. I often tell folks my wife is an absolute diamond. She was onboard working while I really ramped up my trading. But it's understandable that a spouse can start to feel resentful. And it's a very tricky balancing act ... just ... family wise. I'd be up at 3:30 am, right after London opened, looking at the Sugar market. By 3:00 pm? I would be absolutely passed out exhausted on the bed. So what time do you think the wife came home from work, and working all day? Yeup ... right at that time. So is it unreasonable of her, to be a little upset, to see me drinking coffee, sitting at home as she went off to work (she doesn't work any longer, but back then) ... and then comes home at the end of a long day to see me passed out asleep on the bed? Who cares if I had a $5,000.00 day ... it will cause a little resentment, and it's natural. If it's spousal income, and that's the route I took? It helps to have a very understanding wife, and to be making real progress after say ... 13 months to 16 months. Flowers don't hurt either.
It helps tremendously under two conditions: 1. She makes enough money to support your entire household, because she accepts the fact that forcing trades = losers and that trading as a profession can be very inconsistent. 2. She understands and accepts risk. By their nature, woman in general like certainty. It's part of their genetic makeup. Any person who equates speculation and trading with certainty, or who requires certainty, should not be in this profession period.
Having a working spouse is I would say recommended for any traders. The reasons being : 1) Your spouse will respect your activities: if she is not working as well, she will not understand how "earning money" is not necessarily easy. 2) Your spouse will respect your money, as obviously she will respect hers due to learning the value of work. Then obviously if your spouse if fully made aware of all the drawbacks of trading - learning curve, possibility of failing, etc... then if she agrees you are on a winning path. Having a spouse dragging you down is a huge no no no for aspiring traders.
------> Does having a spouse with income help or hurt trading? >  ------- Depends on your relationship with her.
Items 1 and 2 are, IMHO, delusional in terms of what to expect from a spouse. Let the Passive-Agressive games begin.