Hey Guys, I'm considering leaving my job to start day trading full-time from home. Day traders: Think you could tell me some pros and cons of that lifestyle? Best, Fat Mensch
Pros: Unlimited income profit potential, perform your job in your underwear, make your own hours. You are your own boss. Deeper discovery of your own true nature. Cons: Unlimited income loss potential. Total wipeout, and you soil your underwear. (DON'T just outright quit your job and jump into it. Try to work into it gradually if you can. Feel grateful you even have a job.)
My advice: don't do that unless you are consistently profitable and are able to make at least a few times your salary (depends on your salary and cost of living).
Not to dissuade you...but I see nothing but disaster; What makes you think you are one of the relatively rare 10% or 1% of traders that can trade or predict the market well enough, and manage those position(s) in the heat of the battle This is Reality -- Not one of those Tim Sykes pitchmen stuff that sells to gullible men who wants to trade from the beach with their Porsche in the parking lot. But If you think you are hot stuff...trade/predict how the SPY will move/behave during the day...and use options on that.
CONS: Your first 100-150% will go towards commissions, you will be trading against machines for the most part and some of those who designed the programs have over 30 years of experience. Expect to lose 1-10 accounts before learning how to not lose as often, you are your own worst enemy for lack of understanding price action, unlearn indicators till you know what the price will show the indicator to do something, know the differences of what time and sales might be telling you, back test early in the morning till late at night, better know how to program, and know all the answers before the questions. Prepare to learn all the worse parts about yourself, depression, anger, frustrations...could be for years. PROS: you can make limited money cause the markets in futures and stocks have heavier volume right after opening for first 45 to hour after, try pushing several hundred lots in Index Futures without slippage after that first hour expect ticks of slippage, and when you need to get out, expect even more slippage, whether futures or stocks, when their is no one will to take the other side, it is going to cost you huge. If you can become that 1%, you never have to worry about money again. I recommend you demo a method and when you can triple that demo three separate times, then start part time, when you have saved enough for six times what you need for year's worth of living expenses, ask for leave of absence of change shifts, or get a part time job to have something coming in, lots of expenses at home people don't realize when they quit working and emergencies that can come up. I didn't quit my job till I had three million in savings. I kept thinking it was luck and would soon go back to losing. But I was already doing well in very long term stocks and commodities. I think it is easier to learn longer term trading first and when you making profits then go to smaller timeframes, gives you more time to memorize as they is so much you have learn to breath it in. Good luck and expect to work years of 90 hour weeks.
Come in here dear boy... have a cigar, You're gonna go far, You're gonna fly high, You're never gonna die, You're gonna make it if you try, They're gonna love you.
Vanz, really? 1975 stuff? Go back to 1973! Us...and them. And after all We're only ordinary men. Me...and you. God only knows... It's not what we would choose to do.
"If you don't eat yer meat, you can't have any pudding How can you have any pudding if you don't eat yer meat?"