Thanks again for the feedback. They are semi-automated because the programming lacks the necessary filters to weed out bad trades. I can spot these visually but they are hard to code. The automation software that I use happens to be the same company that I work for, so trading this during the day (even if it's with remote desktop) is not an option because they would monitor my trading activity and I can't break any rules.
$50k/year is a good pay, why would you want to give that up? Let's look at the pros and cons of trading for a living with $10K. Pros: More free time to trade Cons: Under-capitalized No income No money for emergencies No socializing (you won't be able to go out with your friends) No Holiday celebration (you won't have money to buy presents) No social interaction with co-workers Cause low self-esteem Also, if you failed, you will have an employment gap. It may make it difficult for you to find another job So, I don't think trading for a living is such a good idea.
I will suggest an approach which will give you a much less risky start point: 0. Trading through mom while doing job is the best idea imo. In case it is not possible, read on...... 1. Work for 1 more year at least, u will have more savings by then (assuming 600pm expense, u should have around 40k savings+10k=50k). 2. Keep running your strategies in a paper trading account, or if even that is not possible because of brokerage conflict of interest, just write all trades you would have made in an excel, during day time. You can definitely have your company's trading system open during your job, even when you are not trading it even once during the whole year. Even if your manager sees it open everyday, you are not breaking any compliance rule etc. so he should have no problem. Meanwhile, make sure you are doing your job diligently so that your manager doesn't get a reason to fire you, in case your open trading system irritates him. 3. After you reach home in the evening, do a draw-down analysis, as in how much your paper-trading position would have gone under, during the day. Close your eyes and think how your psychology would have played with real-money. 4. After one year, assuming you have 50k saved and your strategies/paper trading has been profitable, do following: 5. Divide your trading capital in 10 parts, 5k each. And start trading from 1 part. So many trading careers get destroyed even before they begin, since the bankroll goes to 0, before a trader is able to develop skill. This way you are giving yourself 10 chances of completely blowing up before you run out of capital. 6. If after blowing up 2-3 times, you become consistently profitable, you will have tremendous urge to put in more money and trade bigger size. Assuming you will be trading at prop. you will have access to capital, I warn you DON'T risk too much of your money at one time. It takes 2-3 years generally to learn to trade profitably and consistently, and I have seen plenty of guys with good promise losing all in the learning process. 7. Know thyself -- Read about psychological biases a man suffers from, sources: wikipedia, or there is a thread on ET also somewhere. Try to absorb the psychological biases, and chances are you will make for a much better trader. Thats all I have to say. Good Luck!
It really isn't much different than attempting to start any other type of business where you are sole proprietor. Except maybe the socializing part. Trading at home does get really fucking boring.
It's always the same blind ambition. Try self-employment for three years in a technical or service based profession, and then see if you have it. Perhaps you can built some psychological and emotion fortitude that you'll need to handle blow-ups, liquidity traps, strategy erosion, etc... I started a technical business because there were no options at the time in my career path, and that hasn't really changed due to our lovely economy. I thought I was short changing myself with having less money to dump into trading, but really you discover something called efficiency, clarity, and accuracy that a well capitalized guy can't always get, even with money. That tool, once you get your business sense will help you become a businessperson in general, and if things line up for you, perhaps you can trade for a living. But this isn't the 80s or 90s.. theres no big money waiting for you without a huge edge- an edge so big that it will mean something on a large scale, and that edge probably isn't in your bedroom. Sometimes you don't get to trading by trading.
I think Uncle Sam needs to have his cut. I like the suggestion about dividing the total capital into X parts and allow for multiple incarnations in this trader's life. But I think $5k for each incarnation may be a bit small.
I assumed he will trade at prop shop, so I suggested 5k. If he gets the point I am trying to make, and is happy to follow the drill I am suggesting (like paper trading for 1 year, recording all transactions and analyzing them in evenings or over the weekend, then OP has a much much higher chance of success in trading. If he follows the drill, he can either go with 5k/7k/10k ...it doesn't matter much. Yes, Uncle Sam will always take his vig though