Discussion in 'Professional Trading' started by innovest_11, Feb 12, 2008.
Have you actually managed to blow up an account yet?
It is very tiring indeed, to cater to both day job and night trading, u r right, health suffered due to lack of sleep...
Yes, i'm seriously considering this as business venture and it has its monthly costs too, just that the amount of effort put in, does not equal to the profit generated, sometime when u don't monitor so much, it may even get better profit or vice versa
Maybe now i'm into midlife crisis, where u get bored with work and wanted to change to do something different...
But i know that with 50k, it is extremely difficult...
4 years ago, my account drop to 10k from 40k, due to speculation on penny stock, then now back up to 50k, without putting any more additional money into my account. Account has been slow durign 2nd year,3rd year better, now with more experience, 4th year has been quite good, so still going up to current level despite bear market now.
I think it would be crazy to pack in your job and doing so would be more stressful than you could imagine. Please have a look at the following Brett Steenbarger pieces;
Look back at your account statements. Take $3,000 out of your account each month since the time you took your account from 10k to 50k. What would your account size be if you had this constant drag?
If I was in your shoes, there is no way I would give up my day job. The numbers do not add up.
Thanks for all the excellent advices. Saw the blog site, excellent posting there. 50k is indeed very much under capitalized. And also maybe taking too much risk to pay for monthly expenses, i think it is best for my account to reach 100k (if i could, maybe will not reach here even), then I'll ask for your advice again, thanks again.
$50k is not undercaptalised - if you know what you are doing, you certanly did not need six figure sums - you can lose all even with $100k - but if you know what you are doing $20k is plenty
I agree with shagi that it does not matter much the quantity but quality of your trading system that how much percentage are your winners and how consistent it is.
To the board: What if your job (i.e financial sector) does not allow you to trade part-time because of restrictions put in place by the firm. What do you then suggest?
Use end of day prices or system - or end of week !!
You will see you will do much better than most mini rabbit chasers in ET.
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