Birddog; I encourage you to take the leap. But I also suggest you stop focusing on the $ outcome and instead focus on developing and maintaining a disciplined, controlled, structured trading system that accounts for appropriate risk control measures. Start with a very small size so that the actual end result becomes meaningless (like 50 shares). Don't worry about not covering your trading costs. Worry instead on getting your system together. Then when you see consistent winning trades, start increasing your size. Don't trade $500K right off the bat simply because the prop firm is giving you 10 to 1 on your $50K. Never trade your limit simply because that's your limit. Whatever your limit is, you should always have plenty of room to go. A trader should never "lack trading capital". Your size is a component of your limit, so whatever capital you have is always sufficient. If you trade properly and do well, those lines will increase. Don't worry about that. Profitable traders are rare in this business, and when you're profitable, firms MUST take good care of you PERIOD. If they don't, WALK and don't look back.
I read your post and though very similar to many I get weekly, I am going to offer up something you may not like. I don't really think you are ready to start trading on your own (remember, all I have to judge by is your message above), and that you should not give up your current position. The entreprenurial spirit is a must when trading for living, and the willingness to let go of the security blanket is a hard thing to do (for anyone). Professional trading is not for everyone, and although there are many firms out there who would be happy to have you jump into it, you are the only one who can make such a drastic, life-altering decision. Until the time comes where you are really tired of what you're doing, or they decide to lay you off, you are probably better off saving up some money and taking it easy. Regardless of your decision, I wish you the best, and have a great Holiday!!
You and I are in the same boat. 1) you should definitely be looking. read through the old posts here. The ?'s you've had are answered in detail, though you will get many different sides, which is good. 2) Definitely don't leave your day job yet. This is tough, because like Don said it's your security blanket. Question yourself hard here. Can you go without that income (do your own personal finances and be honest with your/family spending, etc.)? If yes, save to cover 6 mos worth, then go for it. If no then, figure out your finances, income needs, and then save 6 mos and go fo it. your income related questions about trading seem to hint at a "no" . I truly dislike my career(s): customers, problems, etc. BUT when I look at it as a means to achieve the 6 month count down above, then it ain't so bad. Plus I've seen people getting layed off... It ain't pretty... thats another story. Do you hate the work you do? for the most part it sounds like practical market participation. 3**) Why don't you go the route your order clerks are going? Quote
Don, I tend to agree with your answer even though you are right - I don't like it. Right now I don't feel confident enough to know that I can bang it out month in and month out. Also, when the time is right I will know - although I am moving in the right direction by thinking about it. Obviously I cannot have a pro account and work at a firm since my license cannot be in two places. I can however, get some training, learn the advantages of listed trading (which I have never day traded) and focus on the end result - i.e. a game plan to going it on my own. I would like to put one year of income aside (outside of my trading account) and practise - a lot. Is there any way I can open up a pro account right now? What are group accounts (on your website under the new fee schedule). Unfortunately I will not be able to make it to Vegas End of January since my wife is giving birth early February and I don't want to be out of town. I will be at your next training seminar - when is that anyway? Also do you have anything out in LA as far as seminars are concerned and can I make an appointment to see your LA location? I hear what you say about "hermit trading" (which is what I have done - since none of my brokers day trade). I think it is a good idea to sit in an office for a few months, work on methodology, discipline etc. Quote boy, you asked why not do what the order clerks at my firm do? Simple answer why get 50% of the profits and use someone elses money when I can get 100% of the profits and use my own. Thanks for the input everyone. Much appreciated Birddog
I look forward to seeing you in Vegas. When we refer to "group accounts" we mean groups of 6 or more traders who have banded together to take advantage of pricing discounts. Since we have "spawned" several other firms, started with traders who merged their accounts for better pricing, we thought we would make it easier (and cheaper) for them to form a business-within-a-business with BT. I will be in the SoCal area in March or April, but not for full training....I will post up the next class after January next week.
one more comment for you birddog, Don's correct about security blanket. I know what you're talking about. I was F/X trading for big firm, but I didn't care about the money. I love trading. I also have no mortgage, no wife and no kids (i'm still young ). I would rather trade and make $30k per year and do what I want when I want (be my own boss) than make $200k per year for some bozo who i have to kiss his ass, and all the managing directors for my bonus. I just love trading and work very, very hard at it. Ask yourself is it worth the sacrifice? Cheers Canuck