Hello all as the title states just looking for a little advice. Got laid off recently from a non trading related job due to a plant closure. I'm cool with that however. The work paid well but was very uninteresting, became almost mind numbing in fact. I was a Technician. So now I'm left at a crossroads you could say, heres what I'm thinking. Option 1 Find another job related to my training. Safe bet I could find another 9 to 5 and expect low $100,000 plus a year. Great but if its anything like my last job I'll grow to resent it. Furthermore goes without saying hard to follow the markets when you're tied down doing something else unrelated. Option 2 riskier Really go for it and immerse myself in the markets like I could never do before. Sink or swim baby! I imagine I would try and locate a proper prop firm to join to hone my craft and be around like minded traders. As far as prop firms are concerned I know very little other than that it sounds like a minefield full of shady outfits. Preferably like to find one in Canada. I'm not entirely a newb. I also hold a Finance diploma, as well I've traded the best I could around my previous job with some success. I realize the importance of risk management and position sizing. I also now realize and come to understand that we can be sure about a trade but can never ever be sure. Its all about probabilities and statistics and making the math add up in the long run just like the casinos. Anyways there are some really smart individuals lurking around curious what they might say.
It takes years to build and practice a winning trading system to suit your trading style (e.g scalping/day/swing/short-term trading). During those years, you probably need some incomes to support your living as well as funding your trading account to cover losses that you might accumulate during learning process. So, it might be a better idea to work for a full-time job while learning the craft of trading. Remember that in order to trade well, you must develop your own trading system which you can make consistent profits as well as knowing how to cut loss asap. Otherwise, taking buy/sell advices from others won't help you to do well in your trading career, especially if you plan to pursue trading as a full-time career.
Follow your passion! Assuming your passion is trading make sure you have enough $ saved to allow yourself a realistic chance to succeed. Its not a get rich quick scheme, it takes time to discover what works for you. In short term trading ( day or swing) a finance degree adds no value to the equation. Most independent/ retail traders fail not because trading is difficult but because they did not/ could not learn to master their emotions. First decide on the direction you want to take before thinking about prop firms.
Try this, free interviews with many very successful traders - day, swing, quant, & trend. Many of these traders were once at the same cross road as you. These traders will give you a good idea of what they went through getting started and developing into profitable traders. Its a real gold mine of trading info to give you an idea of what the pros have figured out works and what doesn't. I am sure this will form a better idea of what lies ahead if you opt to trade for a living. Also the 'Market Wizards' books are a good read for someone interested in entering into trading. https://soundcloud.com/chat-with-traders
Thats the path I've been on for the past few years thankfully Ive squirrelled away a nice little bankroll. I don't know maybe there is some benefit to be in an environment surrounded by other traders but sounds plausible to me. This guy who used to be on this site Lescor was his name, he packed up went to some prop firm in Arizona for three months. By all accounts hes a pretty good trader. It sounds like he benefitted from his experience. Inspiring eh?
Amen ain't that the truth. I wouldn't say the Finance diploma was completely useless more like 90% of it was. In hindsight I should have studied Math/statistics instead. I never understood how so many blow their accounts, don't get it never had that problem. I can only guess it comes from not understanding or appreaciating risk ie. risk of ruin. And of course greed. Not like there is a curriculum out there to teach one how to trade.
Yeah, pretty useless I'd say. It's like having a diploma in computer science isn't gonna make you any better at playing computer games.
Most wannabe traders wouldn't last long at prop firms because they had no idea what they were doing. The most valuable learning experience I got while working there is risk management and discipline skills. These skills would help successful traders to avoid taking high risk trades, while patiently waiting for the right moment to come in order to enter a trade. Imho, this is how successful traders survive in any kind of market condition. So, yeah, working at a prop firm definitely is a big plus to help you become a better trader because of high pressure on your shoulder to do well.
the Finance diploma was completely useless more like 90% of it was. ___________________________________________________________________________ There are some damn good traders that came in with finance degrees. They seem to do especially good with macro trading - the top down approach which is really catching on. Besides it shows aptitude, intelligence, discipline, etc.. Not to mention it keeps a lot of doors open to work with hedge funds, investment banking, etc.