Trading fulltime retail with $50k

Discussion in 'Professional Trading' started by wiesman02, Oct 18, 2007.

  1. I'll be 24 in a month. Currently have about $30k in my brokerage, and around the summer of next year I'll put $50k in my acct. I have NO DEBT, and live with a buddy so if I cant pay rent at worst i'd move back w/ mommy til i'm back on my feet.

    My strategy will entail buying/ shorting the gap ups and gap downs, as well as scanning for the largest % gainers and losers at 10:00 am.

    why I've chosen gappers and high % winners: support/resistance and price action is more predictable w/ high VOL.

    starting equity: $50k with $200k buying power.

    max per position size: $25,000. $10-$20 stocks will most likely have 1000 share sizes. lower volitility = more shares, but most gappers won't exceed 1000 unless its an under $10 stock. Max stop loss per position will NOT exceed $300. Not sure what exactly it'll be yet. I do not plan on blowing out my account, b/c I will not continue if I get a 40-60% drawdown right away. I've been studying gappers and I feel I am beginning to strongly understand price action.

    Here's the kicker. I have a steady job at a bank making $42-$47k depending on bonus. I hate the 9-6 grind and I love trading. I feel I am young enough to try my stakes at what I love but I refuse to go prop. I'm going to trade retail with $50k. $45k just isn't enough for me. I'll never make $100k in banking, and I don't like my current lifestyle.

    When I end up quitting, I'll have 2 yrs experience in banking with my series 6 just renewed if anything goes wrong

    Thoughts ? Words of wisdom? Wish to talk me out of it ? I'm all ears. i appreciate your comments. $50k enough ?
  2. rcj


    How 'bout this;

    Do you have a degree?? If not ...

    quit full time w/bank

    move in with mom for awhile

    get part time job ....

    go to school...get at least one marketable degree

    hang onto your capital ... trade smaller lots part time
    while in school.

    Just my thought. By age 30 you could be in great shape.


    Edit: where is dad...could help??
  3. I have a BS in economics. I do not want a regular joe schmo job.
  4. Keep your "day job". Trade in the evening and/or very early morning. Could you work 2nd or 3rd shift at the bank somehow? If so, that would open up the possibility of trading during the morning/afternoon.
  5. Forget the corporate world, go follow your dream if it is to be a retail trader. Sometimes you've got to take a risk to get a reward, having a safe steady job is one choice, but if you have some capital and think you can trade, go for it.

    Going to grad school is useless unless you want to be an academic.
  6. Dont listen to those that say "get a job and trade on the side" if your real passion is trading. If you want something bad enough,you will find ways to make it work (ala living at home with the "rents" for a while to save $$$). Everyone, myself included, had to learn the game over many many days/weeks/months etc. Knowing this, you should be prepared for a long journey. But one of great learning and eventual understanding. I dont make that much trading compared to some, but I have been between 112k-174k every year since 2001. Plus I get to be home with my wife and have much more freedom to do what I please.

    Fortunately you are young and with few responsibilites, you are an ideal candidate for giving it a go.

  7. Trading part time is going to be a headache, you either go all in with trading or stick to buy and hold investing. You can't trade part-time unless you have a very easy job with accomodating hours letting you trade disturbance free from 9:00 am et to 11:00 am et, the prime time of trading.
  8. nasdorq


    50k with leverage is fine, if your technique is solid and you're in complete control of your emotions, not to mention emotionally detached from your money. But initially it can be tough. Many had/have this problem including myself. When you step out of the box and NEED to make money to support yourself and hopefully grow your account, your psychology can change. You might force trades when you should be waiting, and you can get more frustrated with losers. Basically, you can't have any fear, or you will likely lose. The ideal situation is to have a flexible part-time job that will cover all or a good part of your monthly expenses. Anything to take the financial pressures off.
  9. lwlee


    Right idea but wrong industry. There's a reason why they call it "banker's hours".

    My sis temps doing graphic design and hours are late. That's a possibility. I always try to get her to try some trading but she's too conservative.

    It makes it easier if you have a steady income to offset trading. That way you don't feel the pressure of trading every day to meet your living expenses.

  10. nasdorq


    just re-read your post. If you haven't done much intraday trading, then DO NOT start with real money. And if you do, trade tiny tiny shares.
    #10     Oct 18, 2007