So who's given up their day job to trade?

[caleb2003]

Who on here has taken the big leap from working for someone else to trading at home?

Any experience tales would be really helpful.

I'm aware of the risks etc etc and the steep learning curve and time required but just would like to see what others strategy for doing this has been, ie do you make a set amount each month and put it away for the mortgage and then trade more agressively with the rest or only work from a small pot, how long has it taken before realising a good profit? At what point do you know your money is available to spend rather than keep in the trading account for the likely losses to come?

Apart from the financials how has the motivation gone? ie dealing with the kids/wife at home whilst trying to look at charts or renting an office out of the house.

 

[Sean K]

Re: So who's given up their day job to trade?>

You need a pot of gold behind you to do this IMO. And/or, a partner willing to support you while you go though the trial and error, learning the art. I have been lucky to have both.

You couldn't leave a full time job and go into this cold and make money IMO. Unless you're YT! In which case, you leave high school and start trading.

 

[caleb2003]

Re: So who's given up their day job to trade?>

How much would you consider a pot of gold to start with?

 

[professor_frink]

Re: So who's given up their day job to trade?>

How much would you consider a pot of gold to start with?

I'd say about $60 000-75 000.

 

[CanOz]

Re: So who's given up their day job to trade?>

How much would you consider a pot of gold to start with?

Only my humble opinion but....

If i felt confident enough that i could make enough profitable trades to make a living, i think i would need no debt, $100,000 in the trading account, and a partner that worked at least partime.

Your obviously more interested in those that have done it though, as i am too.

Cheers,

 

[wayneL]

Re: So who's given up their day job to trade?>

You need a pot of gold behind you to do this IMO. And/or, a partner willing to support you while you go though the trial and error, learning the art.

Agree.

I have been lucky to have both.

Me too. 5 1/2 years now.

 

[wayneL]

Re: So who's given up their day job to trade?>

How much would you consider a pot of gold to start with?

The more the better.

 

[Sean K]

Re: So who's given up their day job to trade?>

How much would you consider a pot of gold to start with?

Depends on your lifestyle and your financial committments. Do you have a morgage, car loan, insurance repayments, children, future holiday plans, beer drinking responsibilities, yada yada.

It's difficult to put an exact figure on, it's a case by case basis. Only you can work out if you can live with potentially no income for a period of time, or even negative when you get it wrong. (every chance - expect early trading experiences to fail) I have very few responsibilities, so I am not a good example. Trading is a hobby for me really.

 

[caleb2003]

Re: So who's given up their day job to trade?>

Agree.


Me too. 5 1/2 years now.

I have the wife and may have the pot if that amount is sufficient to trade with good percentages (for risk etc).

So 5 and a half years for instance is a fair amount of time, has the experience been worth it, not just financially but have you found yourself to have more time for family etc or are you spending most of your time researching?

Thanks for the replies.

 

[bvbfan]

I sort of have, I'm still getting asked to work but I can choose to go now or not.

For me the advantage is that I can still live at home and not have to worry about mortgage/rent.
And I'd rather not have to ever worry about mortgage payments in the future.

What's helped me get to this point is actually not trading but buying the right stocks and holding for good returns (ie. 300%-3000%). Even still I'd like to devote more to trading account than I have available, the funds are still primarily in long term holdings and will be until I can generate similiar returns each year from trading as I would from buy and hold strategy.

 

[barney]

Re: So who's given up their day job to trade?>

You need a pot of gold behind you to do this IMO. And/or, a partner willing to support you while you go though the trial and error, learning the art. I have been lucky to have both.

You couldn't leave a full time job and go into this cold and make money IMO. Unless you're YT! In which case, you leave high school and start trading.

I agree Kennas, I'm walking proof of that. I proceeded to lose most of my pot of gold (doing better atm since I started educating myself) Fortunately I haven't lost the supporting partner

Whatever you do Caleb, make sure you do some serious research, and don't play with too much of your capital b4 you are ready ........ How do you know you are ready ............. You stop losing your capital!! Cheers Barney.

 

[Sean K]

Re: So who's given up their day job to trade?>

I have the wife and may have the pot if that amount is sufficient to trade with good percentages (for risk etc).

So 5 and a half years for instance is a fair amount of time, has the experience been worth it, not just financially but have you found yourself to have more time for family etc or are you spending most of your time researching?

Thanks for the replies.

The market can become an obsession if you let it. You can spend as much time as you like analysing and researching and forget what might be important - like relationships.

I usually force myself off the computer whenever my partner is home, which is very difficult. (she's on a girls night out at the moment - he he)

She calls this compter 'my other girlfriend'.

 

[Sean K]

Re: So who's given up their day job to trade?>

I have the wife and may have the pot if that amount is sufficient to trade with good percentages (for risk etc).

So 5 and a half years for instance is a fair amount of time, has the experience been worth it, not just financially but have you found yourself to have more time for family etc or are you spending most of your time researching?

Thanks for the replies.

And time wise, I have been rehearsing for this for about 10 years. Plus I have a brother in the industry who has mentored me and I have done some uni studies in finances, so it really all depends on what you bring to the table right now.

 

[caleb2003]

It would also be interesting to know how people stay in the middle between procrastination and greed, ie doing too much or too little, always a problem for the undersupervised!

 

[barney]

Re: So who's given up their day job to trade?>

The market can become an obsession if you let it. You can spend as much time as you like analysing and researching and forget what might be important - like relationships.

I usually force myself off the computer whenever my partner is home, which is very difficult. (she's on a girls night out at the moment - he he)

She calls this compter 'my other girlfriend'.

Yeah ................ my wife is very long suffering about me and my computer as well ................ gotta give them enough attention cause they have a lot more "memory" space than the plug in versions ............ and you can't just hit the restart button when things aren't going to plan

 

[Prime]

Hi all,

I heard what I consider reasonably sound advice and that is ...

Live off your trading earnings for a period of 12 months or more.

At the same time bank (and do not touch!) your other "personal exertion" income.

If at the end of this period you encountered no financial ill effects then a decision to retire from the job can be made.

To add my own bit to the above advice, I'd prefer to continue as above for a 5 year period (or more) so that you have a reasonable opportunity to experience both good and bad market conditions and see how you fair in both.

If you survive that kind of apprenticeship, then you're set ... because you also have 5 years of unspent cash in your account which in turn becomes a pretty significant pot of gold to start some really serious trading.

wadayarecon?

 

[tech/a]

Personally I couldnt think of anything worse.

Successful and profitable trading is as boring as hell.

But if you wish to live off it.

(Stage 1)

With $80,000 you can make $2-4000 a week (averaged) or more if your really proficient short term trading but you'll fry your brain infront of a screen,Ive done it for 3 mths at a time spending around 4 hrs a day screen gazing and charting.This is while I had/have my day job---frankly thats what turned me away from what I think is the BEST business you'll ever have.
(Bliss----no staff,no equipment,no clients,no warehouse,no machinery)
Which lead me to

(Stage 2)

Most know I trade longer term mainly.
Now with 200K on Margin you can reurn as I have for the last 4 yrs 30% on capital so thats around $150k/ a year less costs plus dividends.
This takes around 10 mins a day and is as BORING as hell.

So in both cases LESS TAX in case one 30-50%
In case 2 some at the tax rate but as you hold for over 12 mths you could halve that,just cashing enough for drawings---MOST forget the TAX issue and its the MOST expensive cost. Nett figures mean little!

So why leave your job?

 

[wayneL]

Re: So who's given up their day job to trade?>

So 5 and a half years for instance is a fair amount of time, has the experience been worth it, not just financially but have you found yourself to have more time for family etc or are you spending most of your time researching?

Thanks for the replies.

Yes I enjoy it... a couple of comments though. I have always liked working alone, seeking company, debate, help etc on my terms. I like the opportunity to disappear into my cave and shut out the world.

So it suits someone like me down to the ground.

Those people who enjoy the cut and thrust of daily business, hustle and bustle etc. will find it too lonely and boring.

It does however give me much more time with family etc.

But a fair warning. People will not like you for it. Many people are extremely jealous of the freedom you will have. (presuming you are successful)

For instance; I trade at night so am at large during the day. I will often ride into town on my bike dressed in my bohemian best and just hang about, talk to people etc. The ones that are scurrying about in there lunch time trying to do banking, picking up groceries in the precious little time they have do not like to see this.

They do not see my personal challenges, sometimes lonliness, sometimes boredom, the bad months etc. They just see something they *think they want to be and experience jealousy.

Be prepared for that.

Be prepared for Shadenfreude if you fail too.

As far as time goes... depends on how you like to trade. I spend way more time than I need to. But I am passionate about it and enjoy it so its not a burden to me. On the whole, a lot less time required that a normal business in most cases.

My thoughts

 

[barney]

Personally I couldnt think of anything worse.

Successful and profitable trading is as boring as hell.

But if you wish to live off it.

(Stage 1)

With $80,000 you can make $2-4000 a week (averaged) or more if your really proficient short term trading but you'll fry your brain infront of a screen,Ive done it for 3 mths at a time spending around 4 hrs a day screen gazing and charting.This is while I had/have my day job---frankly thats what turned me away from what I think is the BEST business you'll ever have.
(Bliss----no staff,no equipment,no clients,no warehouse,no machinery)
Which lead me to

(Stage 2)

Most know I trade longer term mainly.
Now with 200K on Margin you can reurn as I have for the last 4 yrs 30% on capital so thats around $150k/ a year less costs plus dividends.
This takes around 10 mins a day and is as BORING as hell.

So in both cases LESS TAX in case one 30-50%
In case 2 some at the tax rate but as you hold for over 12 mths you could halve that,just cashing enough for drawings---MOST forget the TAX issue and its the MOST expensive cost. Nett figures mean little!

So why leave your job?

Howdy Tech, We are all familiar with your short trading expertise ...... Just wondering re your longer term investments ...... Do you have a criteria for picking your stocks? ie Why do YOU Invest in a company (fundamentals?? etc etc.) This would make for some interesting reading for us newer chaps. Cheers Barney.

 

[caleb2003]

So why leave your job?

Mostly the job I do is about 10 times more boring than that and I am earning very well as a telecoms contractor but its more like 8 hours a day in front of a screen and 5 hours travelling plus having to deal with very unmotivated managers really deflates, after 7 years of this its time for a change although i think any job will be boring after 2 years plus (well in my limited experience up to now at least!).

I have a chance to release some equity and hope to use it in a business but am concerned about throwing lots of money upfront into a business and then losing it or being trapped in it. With trading at least there seems to be a good degree of control of equity.

Great comments everyone, keep them coming. If anyone has lost the lot doing it or made a good living or become rich or even gone mad then its all good knowledge for most in here