ok, u see your trading account going up nicely but only to see it drop -6k for monthly expense, how to deal with this mentally? 6k monthly is for my commitments of kids/house/cars/spending/etc How are you as fulltime traders deal with these kind of monthly "drawdowns"?? Or take on 2nd job to deal with expense?? but this option means i have to forego fulltime trading and gone are its benefits of flexible timing and no boss around, etc
You need to get your trading expenses as cheap as possible. if you are profitable but paying too much in trading commissions it will kill your Net PnL. $6000 is pretty expensive if you ask me. (unless you are trading heavy vol) post up your expenses and lets work on it. mentally, it is the name of the game. no different then a sales rep who pays for sales leads and doesnt make any sales.
Thanks for replying, expenses are for kids/houses/cars/other expenses, so this is what i meant, as fulltime trader, while my profits are more than my expenses, my trading account is growing quite slowly...
I am sorry, I thought your trading expenses were $6k a month. If you have wife and kids and supporting the family day trading you better be a solid trader with a smooth equity curve. I personally would not recommend day trading to support a family unless you have a large pool of assets and are profitable as a trader.
What is the problem?? Unless your account can not sustain a MINIMUM 6k monthly loss, you are doing great, otherwise this is purely a risk capital problem in which case, based on your need for trader-stardom, you should do something else full-time, for now.
Sounds like trading is your full time job. Do some math and figure things out. If you draw 6000 a month, 72000 a year. You perhaps will owe 15000 in personal federal income tax plus state tax etc. So, your total needed is close to 90k. You are not going to make profits every month. There will perhpas be months of losses too. So, based on your record you should allow for those. So, if you are generating more than 150K in trading profits, you are perhaps ok to use trading for full time business, otherwise you need some guaranteed income job.
If you are married, get your wife to work. If she can't work or already is working, get a second job afterhours - sales, tech support come to mind. For example, I know traders who sell cars in the evenings on pure commission. You don't want to force trades in order to cover a monthly nut. Nothing good ever comes from forcing trades.
6K is just a insignificat number !! it has relevance only to your trading account size. If you are a profitable trader, may be its time to raise your capital. talk to a prop firm with remote trading and get a mil or two for capital. that should solve your problem.