are these fixed start up (i.e. one time costs, like computer purchase) or recurring monthly expenses (obviously the perishable commotities, like electricity, water, food are)?
I agree 100%. When I started in 1996 mine were $15K. And if one isn't willing to make sacrifices (such as living frugally) early on they just hurt themselves. The more pressure you have to make a decent amount of $$$ in the early days the more likely you'll fail.
This is very true. I'll probably save $20,000 in taxes this year . . . That compounds very quickly. This is one reason why I think that Roth IRA's will not survive tax free during the coming revenue crunch . . . ultimately Roth's will be taxed as income (at least on withdrawal) above a certain income level.
I had just over 100k. I was learning and paper trading for the first few years, and burned through 25-30k per year on living expenses. You should leave yourself three years expenses, plus 25k for a trading account when you are sure you can do it. Leave yourself at least six months living expenses so you don't draw out of the trading account when you start. How much can you make? Depends how good you are.
UK in the 90s. There are always cheap places to live, even in rich countries. People on minimum wage or less, still have to be able to afford to survive. I am pretty sure I could live off about 10k now. All you really need to spend are the unavoidable costs.
All monthly repeat costs, except computer. You can get a 2nd hand one for 100-200. However, personally I'd rather spend more on decent gear for trading. But even a new shiny 750 computer is only 20 per month, depreciated over 3 years.
You can get a perfectly awesome computer for around £400 - £500 if you build it yourself and search for the parts, that's how much mine cost minus the monitor. Thankfully computer isn't a problem I just need a place to live now and the money to buy it lol
LOL Some people here think you can make it with 10k at prop. and if you live frugal $5k a year expenses. NO YOU CANT If you want to live frugal at 10k a year, and you DONT quit 50k a year job, thats 40k savings in 1 year. 40k a year! You think you can make 400% profit your first year as trader from 10k? Living frugal to make it as a trader is the dumbest thing i ever heard...
Working at a job - corporate or otherwise - that you don't enjoy, just for the $$$ is perhaps even more dumb than pursuing something you truly want to do. When I left in 1996 I was making $85K/year. And I left to trade. No guarantees. No regular paycheck. No security. No health insurance. No paid vacation. So what was my motivation? Freedom. No limit on potential earnings. No daily commute with all the traffic. The ability to knock off trading at ANY time of the day I desire. So living frugally early on was not only smart but allowed me to trade more conservatively - book smaller profits to pay the bills and develop confidence in my trading. So if you feel I was dumb to live frugally so be it. It's 10:45 and I've done my trading for the day. Off for a bike ride, back for lunch, off to mentor a kid and then tutor after school. How many working stiffs can make those kinds of CHOICES?
What were your living expenses when you lived frugal? Lets take the example of the poster, 10k. So then you can save 75k had you stayed with your job and have 10k expenses. So then you would have to make 75k trading to breakeven! You say you now trade 2 hours a day and make 75k, then you saved in a 50-hour workweek about 40 hours of work. Thats a good deal. But daytrading usually means trading 8 hours a day. Just because you found a strategy that allows you to take time off doesnt mean others have the luxury. This is the nature of daytrading. Logic still stands. Living frugal as a way to become a trader is a failure strategy. Let me rephrase that. If you NEED to live frugal, otherwise you won't make it in daytrading, then daytrading is a failure strategy. Then you are undercapitalised for sure.