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

[tech/a]

Barney its all here has been for the last 4 years

http://lightning.he.net/cgi-bin/suid/~reefcap/ultimatebb.cgi?ubb=forum;f=74

 

[BSD]

Sorry, but a lot of this is BS

In the last three years any mug could have made a living off a skinny wedge

And many of them are now claiming the ease of 30%pa and the virtues of margin

Depends on what your version of 'comfortable' is I guess - but I wouldnt base my analysis or a future business plan on my results from the last three years.

 

[astroboydivx]

Thanks Caleb for posing this question. Like yourself I'm reaching a fork in my road. At 29 and worth $500k I'm wondering if I buy a house and continue to be a bored IT guy, and leave my investments with the funds managers - or do I continue to rent and see if I can beat them at their own game?

Keep your answers coming people. Cheers.

 

[It's Snake Pliskin]

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

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.

Good points brought up here. I too like my cave and enjoy shutting out the world. Real trading is suited to such a disposition. I naturally am a decision maker and value my existence as a living creature, not a sweat shop pretend wealthy wage slave.

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

It would probably lead to failure as normal business is different - totally.

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

Yes.

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)

Try talking to someone and have them shove their opinions down your throat because they have a GENERAL understanding. I don't talk to normal people about it now.

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.

I agree that it must be a passion or a very interesting thing to do, for those wanting to do it. You must understand how to adapt.

 

[laurie]

I stopped work for tax reasons there is no way I'm busting my gut out for the Tax office by having a day job and on top of that paying CGT on share sales which most are held for less than 12 months so I decided to reinvest my dividends while my wife is able to work and pay the bills

cheers laurie

 

[It's Snake Pliskin]

Sorry, but a lot of this is BS

In the last three years any mug could have made a living off a skinny wedge

And many of them are now claiming the ease of 30%pa and the virtues of margin

Depends on what your version of 'comfortable' is I guess - but I wouldnt base my analysis or a future business plan on my results from the last three years.

Good analysis of the last 3 years.
Enjoy your evening.

 

[Bronte]

Who on here has taken the big leap from working for someone else to trading at home?
Any experience tales would be really helpful.

Part time for about six years before taking the big leap.
Now into my sixth year as a professional trader

 

[caleb2003]

Thanks Caleb for posing this question. Like yourself I'm reaching a fork in my road. At 29 and worth $500k I'm wondering if I buy a house and continue to be a bored IT guy, and leave my investments with the funds managers - or do I continue to rent and see if I can beat them at their own game?

Keep your answers coming people. Cheers.

As your IT job is probably going to be outsourced to an Indian or whatever at somepoint soon then its probably best to diversify!!!

 

[wayneL]

Sorry, but a lot of this is BS

In the last three years any mug could have made a living off a skinny wedge

And many of them are now claiming the ease of 30%pa and the virtues of margin

Depends on what your version of 'comfortable' is I guess - but I wouldnt base my analysis or a future business plan on my results from the last three years.

Yes this is a good point.

This has been the most phenonimal time on the ASX for 20 years.

I started in mid 2000 (holy cr@p its actually > 6 years now) fully aware of the ridiculousness of the dotcom bubble. In fact I started trading after a back injury, cause I didn't really have anything else, not because I was drawn in by the boom.

So I learned my early lessons in a bear market... and very happy that I did. Mind you I had learned a lot being a semi-professional punter before that even.

I think the worse thing for a trader is to cut their teeth in a rampaging bull market.

So yes, BSD has a very good point, the market WILL change... can you adapt?

Cheers

 

[bowser]

Yes this is a good point.

This has been the most phenonimal time on the ASX for 20 years.

Just out of interest Wayne, did you do well during 2001 & '02?

After reading some old posts on reefcap, it sounded like most people where having a hard time making consistant profits.

 

[stevo]

If I were a wage slave and hated my job I would consider trading as a living if I had the funds. But if I liked (or even half liked it) my job I would develop a system that allowed me to work full time and trade longer term. Don't confuse activity with profitability. Tech summed it up in his post above - short term trading is demanding.

In terms of dollars the more the merrier - at least $500,000 (using leverage if necessary) and ideally so much that you don't really need to trade But then it does depend on your "needs".

My long term aim is to make as much from trading as I do in business. It's really just a matter of sufficient capital married with suitable strategies.

Work is really challenging at the moment. Occasionally I would like to walk away it's not that easy - I have a significant interest in the business. I trade as a separate business (see my blog for more details http://drawdown.blogspot.com/) and work as required in the business.

I am in the fortunate situation that I can do both; trade long term systems and reap the rewards of being in a rewarding, successful, but challenging business.

Stevo

 

[nizar]

Personally I couldnt think of anything worse.

Successful and profitable trading is as boring as hell.

Very true.
Im not sure why people think its the ultimate lifestyle.

In my opinion, you would need >$100k to start.

And tech, by the way, you were right, its much easier to trade longer time frames, intra-day doesnt work, you gotta let those winners ride, after a few losses, i understand this now.

And i just realise through our conversations on this board, iv almost taught me all of whats in Van Tharps book. Im more than half way through it, and all that stuff about expectancy and position sizing, it was revision, coz iv learnt it through you and Michael D.

Many thanks.

 

[wayneL]

intra-day doesnt work,

Not really true. There are lots of intraday traders out there. However it is a much harder route.

Trend following is a much surer route.

 

[weird]

I agree with Stevo's figure, I personally, would not even consider trading full time, if less than 500K to play with ...

 

[nizar]

Not really true. There are lots of intraday traders out there. However it is a much harder route.

Trend following is a much surer route.

Yeh sorry i meant its not working for me right now
You summed it up nicely.

 

[MichaelD]

its much easier to trade longer time frames, intra-day doesnt work, you gotta let those winners ride, after a few losses, i understand this now.

YES!! You now have a chance at success since you've developed a key ability required for successful trading - to learn the lessons the market presents you with - and you haven't blown your account before working this out.

On a more generic note on this thread, I think that very few people consider the true implications of trading for a living - doing the same thing day after day, most of which involves losing small amounts of money with the occasional big win to punctuate the losses; answering to no one (both a good and a bad point of trading full time); finding things to fill in the void of time once occupied by working for a wage; finding things to fill in the social void of not working in a group environment. Trading is the only profession I am aware of where you basically lose your way to success.

I'd make the argument that a significant number of full time traders don't do it primarily for the money, but simply because they enjoy trading. The fact that it pays the bills and supports whatever lifestyle they choose is a pleasant secondary bonus - newbies make the mistake that it's all about making lots of money, quickly, when that really should be a secondary objective.

 

[wayneL]

I'd make the argument that a significant number of full time traders don't do it primarily for the money, but simply because they enjoy trading. The fact that it pays the bills and supports whatever lifestyle they choose is a pleasant secondary bonus - newbies make the mistake that it's all about making lots of money, quickly, when that really should be a secondary objective.

I think that's true Michael.

 

[It's Snake Pliskin]

There are a lot of people out there that buy the image of sitting on a beach with a laptop looking at graphs. The propaganda is so powerful.

 

[wayneL]

/\ heheheheheheheheeeh

There are a lot of people out there that buy the image of sitting on a beach with a laptop looking at graphs. The propaganda is so powerful.

 

[stevo]

answering to no one

You always answer to someone.

newbies make the mistake that it's all about making lots of money, quickly, when that really should be a secondary objective.

Spot on.

I like to compare trading to betting on a horse race that never finishes. Any time during the race you can move your bets and take profits and losses - and they could all win (or lose). But the race never ends. Just put your money on the faster horses any time you want and when they start to slow down change horses. I am sure that this example shows my lack of understanding about horse racing!

Stevo