Quote from Hardo: Here's the situation: Currently have a decent job that has flexible hours that allows me to trade about half time. When I have had time off in the past that has allowed me to trade full time I have done well. My current job could possibly end by July and I have nothing lined up if it does. I know I can collect unemployment while I look for a new job but I would rather trade than look for further employment. so would everyone. big mistake I am a college grad with a decent network of contacts but jobs right now are hard to come by and when they are offered it seems that salaries are getting smaller because of the intense competition for them. wait until you see how hard it is to get a job when you have 12 month gap on your resume, and your trading fails to live up to your expectations (98%+ certainty) I live in the midwest where the cost of living is very low compared other areas. A salary of $50-75 grand would allow us to live very comfortably. Here is where the argument begins, I believe I can make this trading on my own. you belief is dead wrong Making my own hours and being my own boss really appeals to me. I would rather make $50 grand a year working 40 hours a week trading than work 50 plus hours a week to bring home $60 grand a year working for the "man" and having to deal with the daily bs that goes along with it. so would everyone My wife would rather me work for the man even though it would drive me nuts just so we can have the security of his paycheck. You are the one who is incorrect. You might as well have said "honey, my new plan is to go to the casino, spend $40,000 and hit it big. Your odds may be better. Please do not jump all over me saying that I can't make this kind of money on my own. The way I look at it is it is only $200 to $300 a day average to make this kind of money. again, your chances are about 2% or less. Doing this longterm without blowing out, your chances are probably like 0.3% or less. I use low risk set ups and limit my losses. I would also like your input about the benefits argument, working for the man I would get health benefits. Going at it on my own I would have to find these benefits elsewhere. focus on your insane desire to walk away from a paying job, that 12 months from now, you will desperately want to get back, but you find out there are 200 resumes in there ahead of you. And you are going down to the supermarket, trying to get a grocery bagging job to pay your bills. This is not to be cruel, but the people egging you on are paper traders, and do not themselves make money. You have a job. There are 10+ million people in your country who would gladly trade places with you, and many of them are paper traders.
1. If your asking this question on a board like like ET you know what you should do and it isn't jumping ship and trading full time based on our advice. You need a heart to heart with your wife (and yourself) and be fiscally conservative in these spousal and self discussions. Set the dream aside for the sake of the kids and marriage, they are more important. Agree with your wife on a set date, well in the future, when you intend to trade full time. Agree that you will proceed ONLY IF profits are saved to get the entire family comfortably by for 24 months. Agree to quit trading and re-enter the job market with 6 months to spare if it doesn't work out so she/they have nothing to fret about. 2. 40 hours a week??? I can't believe nobody commented about this. I am a manager and work 50+ hours a week in a non-trading related profession. I trade about 12-15 hrs a week and eat/sleep/read/study trading another 12-15 hrs a week and have done so for 2 years. I have come to realize, I still don't know squat about trading. Still lose money regularly, albeit smaller amounts now. If you want to call 2009 profitable at positive 11% profit/earnings net of commissions that's fine, but a typical IRA/401 would have earned 20+% so I call it losing money. Anyway, my point is, I lose sleep over this trading thing. I enjoy it so much I don't mind the small losses (so much, if part of my plan) except that they keep me from trading full time. Again, your 40 hours per week comment worries me. For most of us, trading occupies (or did during the scratch out a profit days) about 60-80 hours per week. Even our recreation is geared toward trading, we run, walk the dog, fish, play tennis, golf, even vacation, to reduce stress and build health and well being so we can enjoy life and trade OR trade and enjoy life. For most traders, enjoying life is trading (even though many won't admit it.) 3. Already said, but create a REALISTIC plan (NO FUZZY MATH), talk to your wife, agree/compromise and then go for it, not before.
What you overlook is that you don't know just how much you don't know. This is so true for amateurs dreaming of becoming successful full time traders. You wife is right because she instinctively knows that you don't know and women also know that men (most often) are dreamers.
+1 !! OP, you don't need to read my rambling previous post... read Cheese's post several times. It's the grail if I have ever seen it.
3 kids? Ironic. You and I are on the different sides of the door. You are trying to get in while I'm trying to get out. I have no reason to quit trading, but would like to use my time more wisely. I could easily fit in another full time job while doing what i've been doing as a trader. I have a supportive wife and 3 kids(4,2,1) and because of it, I've been reluctant to explore for more challenge outside of trading. Lately, I've been spending more quality time with my family, working out more, more golf.......... but I feel like i should still do something else besides trading. maybe a small biz .............but i feel you, seeking a new career could be devastating to your family. sorry i'm not being too helpful here, but it sounds like you need to peep into her femine side and really to try to understand her, and work out some terms.
do you know where the market will be in 6 months,if it trades like today , u wont make squat,i say keep the job and the side trading, it's a double income... and allows you to learn how to trade... with out all the emotional pressure,..if you quit and put the wife on pins and needles,(with her family whispering in her ear). how well do you think you will trade,.. the emotional crap is a tall wall to climb, yours will be taller
Traderzones, why do you think he doesn't stand a chance? I mean, he's ALREADY been doing it for 3 years, no? Making money every year. If he started a thread 3 years ago about whether to start trading part time, you would have definitely told him 'No!! everyone fails. you'll lose all your money' Well...you'd have been wrong, and cost him $75k so far, lol! Are you saying that the added pressure of it being his only source of income will lead to him failing? 3 years is a long time. He obviously knows how to trade. I know trading is very hard with a high failure rate, but I think you're being overly negative. Some people ARE able to make money trading. If his post was about how he'd been trading 5 years fulltime profitably trading, and was asking advice as to whether to take a good job offer or carry on trading, id assunme you'd say stop trading?
There's risk involved in everything you should do and there is no 'guaranteed' paycheck, particularly in this day and age with how unstable the economy is. I don't think you should quit your job but if you're really getting as profitable as you say you are then maybe you should save up and slap your wife in the face by getting a really big house or expensive car and then she'll instantly start questioning you on where you got the money.
you can trade while collecting unemployment. http://www.elitetrader.com/vb/showthread.php?s=&threadid=192724&highlight=unemployment+benefits it will be a cash flow + reduce the pressure to over trade.
Hardo, take no offence trading is a job. However your 3 children and your wife might not be able to understand how much you work to make a living because they see you at home. That might set a "wrong" appreciation of what dad is doing. You are setting a model for them and i am not sure that the picture you are going to give will bring understanding and respect. This retail trading job is really difficult to explain to others and you end up trying to justify yourself whenever you are asked about your job. I have never choosen because I can trade at nigth however i know 2 very profitable traders that felt bored after a certain time (even while making substantial money) and finally looked for something else in order to provide the usual answer others (and themselves) are expecting to justify their living.