Seriously thinking turning Fulltime trader

Discussion in 'Professional Trading' started by innovest_11, Feb 12, 2008.

  1. weitau

    weitau

    I just made the transition from full time employee to full time trader. I was not fully prepared, and I paid the price.

    Trading is a business, and you should treat it as a business. You must have a disciplined strategy or trade setup, and rules. Most businesses lose money starting out. You should be prepared to "pay tuition" until you start making any money.

    My suggestion is to start daytrading on a playback of a real time data feed. Do this for several months until you you develop confidence. You may also want to consider trading overseas markets like Hong Kong or Europe. So you can keep your job and still trade in your off hours.
     
    #11     Feb 13, 2008
  2. If i was in your situation i would not give up my job unless i knew i could make atleast double $3000 a month. Maybe not in the first few months, but after six months you want to be pulling in atleast $6000 after taxes. Making only enough to cover expenses means everything will just be a big struggle.

    So you really need to make 200% a year on 50K inorder to make $6000 after tax.

    Thats very hard but not impossible.

    I would also recommend a minimum of 6 months of living expenses in the bank to take the pressure off in the first few months. The more savings you have outside your trading account the less pressure you will feel.

    If you have this then go i say go for it, you can always go back to your day job in six months. Just dont struggle for two or three years as a full time trader only to be forced to give up broke after that much time, it will be much harder to get back into the job market.
     
    #12     Feb 13, 2008
  3. hi Businessman,

    Thanks for your excellent advice, appreciate it.

    6k a month means I'll be taking big risk and high leverage, u r right, after few years to go back to job market is difficult, i miss this point, thanks again for your advice.

     
    #13     Feb 13, 2008
  4. if you are floating by your day job, you will be floating by trading too.

    let me explain.

    trading, just like any other business becomes boring the moment you begin being consistent. that's when your goals and targets step in and make it worthwhile.

    while you consider trading to be interesting and fun now, trust me, in a few years of trading it will become exactly like your job now (bear in mind tho that only 10% of newbies got to those "after a few years").

    so, if you can't spice up whatever you are doing now and brings you more money than trading, chances are you won't get along with trading either.

    just friendly advice.
     
    #14     Feb 13, 2008
  5. and another thing...

    you are attracted to trading now, HOWEVER, just like anything new, it looks and sound exciting and gives you the impression that this is what you want to do....

    wrong.

    you'll change your mind once your account starts dropping.

    from that point on until the moment you begin being consistent, you will HATE trading. if you are motivated enough to fight, you will get past that, become profitable and then...

    you will truly LOVE trading.
     
    #15     Feb 13, 2008
  6. opportunity cost?
     
    #16     Feb 13, 2008
  7. you make the cost.
     
    #17     Feb 13, 2008
  8. You have a point there, i may get bored with trading or even frustrated if my account stay stagnant or down.

    Coming to late thirties, just felt torn between trading and day job. U know, working for so many years >10years +++, just felt everyday the same, work work work, 9 to 5pm, working like a donkey, with trading, though it may be the same, and may stare at screen 9 to 5, night time has to do homework, maybe even more tiring, but the feeling is not the same.

    Actually i forget to mention that i'm from another timezone, i work during the day, from 9am to 6pm, then trade US market from 1030pm to 2/3am, sometime till market close 5am, and then go to work next day...


     
    #18     Feb 13, 2008
  9. listen, i don't want to discourage you or something here...

    but you must make it easy on yourself. first thing you need to consider is to let go of hard work.

    meaning, STOP working during the day AND trading during the night. it won't get you nowhere. you'll only cause yourself huge problems, as far as health goes and not only. finance might be in danger too.

    you need to make a journey of self discovery first. find out who you are and what you have always enjoyed (things you already did, not things you would like to do).

    if you think about trading think about it as a business you are doing on your own. it might not seem to you like that, but it is. and trust me, it's as uncertain as any other business you would start out, maybe even more uncertain...

    what you are trying to do here is start a venture. make sure you are currently able to do that. family, finance, time etc... are you willing to risk money and time for that venture? be it trading, running a pet shop or whatever...

    maybe now is not the time, maybe you should get a bit more money and cut that credit spending, maybe it actually is the right time... i don't know, BUT one thing i do know. YOUR FAMILY SHOULD SUPPORT YOU in your venture otherwise, you're in for the biggest problems in your life.

    i consider myself lucky. i'm 25 and have been trading since 1st year of college (i dropped out during the 4th year. couldn't relate to it any more). no family, and trading has become my job. but i don't know how i would have done it later in life..

    wish you the best of success. it takes some effort you know...
     
    #19     Feb 13, 2008
  10. there different types of hope.

    one is hope that you'll get out of a hard situation.

    the other is hope that you'll get good at something.

    the first is misleading and can take you on very winding roads.

    the second makes you hang on once you find your way....
     
    #20     Feb 13, 2008