This isn't adding up. You're going to paper trade the first month, and hope to come up with a profitable strategy. In month 2 you'll trade real money. By months 3-4, you'll be ready to give up if you aren't profitable. I can already tell you what's going to happen.
An options trader sells as well as buys options. You need to read anything by David Caplan. Get a job and trade from a smartphone as you are under capitalised.
I would advise trying to continue to leverage your professional skills instead of completely jumping off the wheel. Then treat trading as a sideline until you're more experienced and confident. If you feel you must pursue trading, it is important to set two hard limits for yourself. (1) Capital and (2) Time. You don't want to end up 5 years down the road, still struggling, having lost your professional skills and contacts. Recruiters and potential manages aren't impressed by personal trading or gaping holes in a resume. So before you begin, consider the consequence.
Around 2 years back I tried to switch towards trading but it didn't turned out well as I faced a loss of $1208.07 so I quit trading but after reading above lines i think i should give it 1 more try.
MarksmanII Very interesting thread. You have explained well the push factor out of corporate : office politics, the feeling of being taken advantage of, the feeling of having reached a career ceiling. Thus leading to demotivation and depression. You have had the experience of entrepreneurship ( that did not work out), and you do not wish to try again. I assume the feeling of failure and loss must have been horrendous. And the pull factor into trading : experiencing the turning over in a hours of the equivalent of one month salary, feeling the "excitement", the exhilaration and the jump in energy ( intense desire, motivation ...). Now, not astonishingly you have left your job and are giving yourself 5 months, on 10k. This knowing that you have very few trading experience ( time experience). You could have what we call beginner luck : the all works well, and you will need to know when to quit. Or you might not have beginner luck : then are you planning to quit after 5 months if it does not work out? Now, are there other options ?
If you truly have an edge, you can swing trade or program your strategy and keep your job. Quitting a good job without being capitalized or passive income is suicidal. Don't do it. surf
Friendly suggestion: Go for it. If you make it, enjoy the money. If you don’t, you can write a book about it.
Exactly. If he doesn't give it a shot he will be second guessing it for a long time. He is not starting with a big amount at all. Not like he borrowed 100k from a family member and is on the hook for it. He is not leaving a job he liked. Hell....he seemed to hate it. So not giving up anything there. He's also young enough if it doesn't work out he can easily re-enter the workforce. If things do work out well then he will be loving life. Doing a job he really enjoys and making great money. What more can you ask for ? From a risk:reward standpoint it's a no brainer. Go for it.
Professional options trading is very different than professional futures or equities trading. Spreads are wider. Are you in Chicago? Find a shop to teach you. It is much more interesting than you realize once you understand options fully. Unless you are just using options for leverage. Than you get what you pay for.