I plan to be as patient as possible, especially early on. The first 6 months I will be trading smaller share lots and keeping costs low. Really just trying to focus on small gains initially and always putting money management first. I don't want to wash out in 8 months. I want to build this into my career.
Give it one year. If you have more than half of your original capital left, you have a chance of making it back in the second year. I do not mean to be so pessimistic, but if you read 1/2 of the posts on this board, you will discover that 5 - 10 % of all traders are profitable, and another 10 - 20% are lucky enough to break even! the other 75% are liars! BTW: Good luck!
I'd suggest you go with the $30K to allow for any early drawdowns if you plan to day trade. I assume you're aware that as a pattern day trader (PDT) you'll need to maintain an account balance over $25K. http://www.nasdr.com/filings/rf00_03.asp
That's actually exactly what I was thinking regarding what "success" would be in year one. Limit losses. Try to trade well. I think managing emotion will be the hardest part of the first year. From reading these boards, expectation seems to be where a lot of people fall off. Swing for singles, not home runs.
But even with this amount of money, you first need to choose low cost broker, because too high commissions can harm you as much as losses. IB or MB Trading can be options for the beginning.
Actually, I believe I will go with MB. I currently have an ameritrade account and will keep it open if MB ever goes down in a hot market. But with MB's new pricing, 1 dollar for 100 shares sounds great. 100 share trades will most likely be my trade size in the beginning.
That's a good amount to start with in the beginning ... if you start with too much you risk losing it all and not knowing what the hell happened. On the other hand, see if you can gradually build your 30K that to 50, then 100K. It's possible to work a regular job and trade if you can find a job during non-market hours. Best of luck.
Honestly, I don't think that's nearly enough. I know that because you can start with that much and because you want to start you'll be inclined to believe that it is enough, but then that would be 'thinking' with your emotions. Also, I regard two years as an absolute minimum in learning the ropes with trading. Realistically, I'd count on four or five. For many people wanting to 'trade for a living' that seems too long. But then, the truth doesn't really care how it seems to anyone. You may also want to reflect on the real emotional reasons for choosing trading as a career (which you may not feel comfortable sharing here). It's my guess that at least part of the reasoning is a (perceived) way out of the pain of your present situation (the downsizing) and as such, right now may not be the best time for making such a weighty life decision. I don't see any harm in delaying the decision another 3-6 months, the markets will certainly still be here and in that time you be better able to evaluate all the information related to trading for a living, rather than seeking only that which confirms your desires.
beautiful point. emotional management seemed like such an easier task than money management. i still re-learn how wrong i was every day. i agree. i am still very new to this awesome game, but i am certain that some very smart and very ambitious people have often approached trading with the idea that they are different, that it won't take as long, that they would trade all these perfect trades are just sitting there ready for the picking. surgeons don't just 'start operating', right? i look at traders like JL who traded for roughly 5 decades and see that even he couldn't be perfect. he was human, so he was forever destined to be his most challenging opponent. i'm not at all suggesting no one can hit the ground running and never look back. i'm sure it has happened. i'm just suggesting that you give yourself appropriate room to grow into a trader. marty schwartz barely treaded water after nearly 9 years of trading. if you really feel compelled into this profession, i sincerely wish nothing but constant success for you. i am sure that if this is what you want to do that you will devote the same energy and effort to trading as you would any other profession. anyway, good luck in your endeavors. take care - omni
It is like "The Voice"'s (with a twist to suit the occasion): If I can make it in trading, I can make it in anything. Is trading that difficult? Yes, if you can't do this: Watch the mysterious dance performed by the market price on a naked screen for a few months. The prize is simply awesome: Chapter I of "how to trade successfully" will slowly be revealed to the neophite.