All fulltimers, Have been trading part time for some 7 years, 1st 5 yrs results have been inconsistent, but still able to grow account, on the 6th yr, have been getting consistent monthly income, but still got hit by some occasional losses, this year have been quite good, able to double my account to 200k My trading income now is about 3 to 5 times my day job salary, but this is only for the past 4 months, before that is about 1.5 times my day job salary Worries: - will i be hit by unforseen situation or meltdown?? - every month i have high expense of 6k, family, house, car, etc - will it affect my trading if i don't have job Question for all fulltimers: how do u handle the above when they happen?
No one can answer this but you. But I'm sure you're also aware that given 100 traders fitting the profile you outline and who do quit their day jobs, the vast majority will be failures and will let down their families, big time. 4 great months after 6 years of mediocrity really doesn't seem to convey a lot of evidence that things are going to be peachy from now on. Why not keep going part time, if you're already doing so well under the circuimstances, and only quit your day job when you're able to double your account several times again? Then maybe you'll have enough to retire anyway if things don't pan out with trading yet can't get your day job back. Just my thoughts, knowing very little about you. Hope it goes well for you, whatever you decide.
Wholeheartedly agree with this post. First I would assess your true rate of success and what the actual reasons were. For example, the past two yrs the FED has pumped up the market essentially (should be no arguments here), so even an idiot could make money trading in this particular environment. So in short, are you as good as you think you are? Second, if the answer to step one is You truly can handle yourself in various market conditions, then take on a PT position at ur company, and see how you can survive....honestly, I personally would not quit the day job with such responsibilities becuase every dog has their day, just like every trader does.... Perhaps someone who actually made this decision will be of more help. Best of luck in your decision and trading.
the fact that you used the word dilemna could mean you know it's a bad idea,keep your day job,trading is only good for a couple of hours a day..for you it's a great 2nd job,vs reffing the little league games,greeter at walmart..etc..keep at it..you will know when you're ready
Oh and one more thing... To answer ur question "will it affect my trading?" Initially yes. Right now you are probably trading with the mindset that if you loose a lil here lil there, you still have your standard income...but when you trade and know you depend on this...how different things become.
yes, I imagine it would cause a huge psychological performance pressure/stress and not just for you, but your wife also and family - also feeding back on you but from the time pov, if you were again able to double your account each of the remaining quarters, you'd end the year with $1.6M , and how much time are you spending each day/week doing so ? then at the end of next year you'd have $25.6M
how strong are the possibilities of your firm cutting back and people losing jobs,hang on til they let ya go,reverse analysis
Worry and/or anxiety isn't a productive emotion if you're trading full time. You have to be confident and sure of yourself or you'll end up trading 'scared'. A meltdown can easily be avoided if you know your exits on your trades. Before I enter a trade I set a target for my exit. I really don't care if I leave $$ on the table. I want to be around to keep playing each and every day. Years ago I saw traders get on the wrong side of a trade and they were like deer in headlights, and refused to take the loss. Some ultimately washed out and we eventually never saw them at the office again. We all like to be right but in trading we have to accept (small) losses. As far as your $6K monthly expenses you don't say what your income is from your job so it's hard to extrapolate and figure if your trading income + job income is sufficient. Last, if you're not 100% sure you can make enough trading to cover your ongoing expenses then I'd say don't go full time now. I had virtually no debt when I left my job 15 years ago; only a mortgage on a 2nd home which was in large part covered by rental income.