Advice from you experienced traders

As far as many traders here, I'm assuming, this isn't really a 'field' to switch into such as a typical career change, its more something to learn about and then try to apply what you learn (perhaps on paper with paper trades etc.), and if you find you have a knack for it, you might quit your job and trade fulltime. Many have taken the professional industry route and become traders, but that's far from necessary imo.

The fact that you can understand complex systems in your job can be an asset, but that also doesn't mean if prices are tanking you will have the balls to buy, or if you will be crying uncle and are too afraid to lose more money, and thus become a seller with everyone else (or that you will be disciplined to use stop loss orders, or be disciplined to stick a particular 'system' or approach that you've chosen etc.)

Find out if you have a knack for it first, and maybe if you have a natural intuitiveness in what you read about the markets and what you observe, then continue to take the next step, whichever that is at the time.

It sounds like there's no need to put any monetary investment in it where you are at this point since there is so much you can do before quitting a job and trading immediately.
 
Quote from maxpower:

I'd first of all like to introduce myself as a new member of this forum and say I hope to learn as well as meet acquaintances. I wanted to ask you more experienced traders for advice on my personal situation. I currently have a senior career in the IT field but have become bored and disinterested. I picked up interest in the stock market during summer last year and have been studying as well as trading. This field is very interesting because it can be extremely complex. I'm looking for a way to transfer into this field, either by myself or through a company. Do any of you have suggestions as to how I should do this? I find that my day job is too engrossing to allow me to trade and research as needed. Should I go part time or simply get a job in the field? Thanks!
More...

I was in a similar situation about 1.5 years ago. Ended up leaving automotive industry AS AN ENGINEER. And yes, because of my interest in the trading industy and through hard work, have found great success.

So, if you have the passion and drive to succeed in trading, you can make it. Don't let anyone tell you differently.

Ended up joining prop firm where you keep 100% of your profits. Of course, there was a capital commitment.

I would recommend full time if you can swing it financially. IMO, it is like any other career...long hours, hard work.

Let me know if you have any other questions.
 
Quote from SteveD:

I think engineers and other like minded people have trouble with "trading" as they see it as a "problem" that can be solved, if they can only find the answer or solution....

Pure trading has a lot more "art" to it...emotional aspects...intuitivenss...etc etc...


Longer term investing or swing trading mitgh be more to your liking


Good luck....

SteveD
More...

I know it is your opinion but FWIW, I had a career as an engineer before switching into trading. I did not have this problem as you describe about engineers being traders.

I have found great success in this field.
 
Quote from maxpower:

I'd first of all like to introduce myself as a new member of this forum and say I hope to learn as well as meet acquaintances. I wanted to ask you more experienced traders for advice on my personal situation. I currently have a senior career in the IT field but have become bored and disinterested. I picked up interest in the stock market during summer last year and have been studying as well as trading. This field is very interesting because it can be extremely complex. I'm looking for a way to transfer into this field, either by myself or through a company. Do any of you have suggestions as to how I should do this? I find that my day job is too engrossing to allow me to trade and research as needed. Should I go part time or simply get a job in the field? Thanks!
More...

I don't know where you are in your trading education, but a good place to start is with the Dan Sheridan web casts on the CBOE web site. He takes a lot of the mystery out of trading and gives you common sense ideas based on limited risk trades with good probabilities. I would also recommend that you open up an account with thinkorswim (TOS). Their software has helped me immeasurably in understanding and analyzing trades. Paper trading with their software is a great way to get a feel for different types of trades. Also go through the chat archives on the TOS web site.

Whatever you do, start small. In my readings about top traders, I was struck by how frequently they said they will not risk more than 1% on any given position. I am not a top trader (yet!), I risk less.

I understand your fascination with the markets. They are a captivating analytical and psychological puzzle. I never tire of them and there is much to learn. It takes time, patience and effort as it would for any craft. Don't give up on your day job just yet. It would put far too much pressure on you to trade beyond your skill and knowledge level to score a big hit to "pay the rent," so to speak.
 
My advice would be study the markets and play with real money for 2-3 years. Risk enough to hurt, so you feel the pressure a bit, but not enough to hurt really bad if you lose it. I.e. do not risk your life savings. If you have $100k saved up, risk $10k and no more, for example.

After 2-3 years of trading or investing, you should have enough experienced to have made the basic errors and learned from them, and you may have started to pick up a few of the things that work. You will also have real results to look at and analyse. Then you can make a decision whether to go for it or not.

If you decide to shift job, consider joining a trading or investment firm. It is much easier to learn from experienced traders/investors than it is to do so yourself. You also get the security of a salary. If you do go it alone, have a maximum loss limit, after which you will quit and go back to working a job. Also have a "time stop" - if you do not have success within say 2-3 years, it's probably not the career for you and you should get back on the job market before your CV turns to cr*p.

So, don't be afraid to do it, but be prudent too. If you are a real trading fanatic then you will ignore all this and go plunge in anyway - that's fine too, as long as you are prepared to accept the consequences.
 
Quote from mastacoli71:

So, if you have the passion and drive to succeed in trading, you can make it. Don't let anyone tell you differently.

Not so good advice. Most who try this, will lose the income from the job plus blow a lot of money, and wind up back in their old job. Replace "trading" with "want to study to become a neurosurgeon" and imagine the complexity and expense trying that. The previous poster who said maybe 1 in 10-20 make it is more correct. Most people who try this will lose their money very quickly.

I would recommend full time if you can swing it financially. IMO, it is like any other career...long hours, hard work.

Start out on the side for a while. Since you work, explore position trading (holding for several days, not minutes). Keep you job until money is pouring in from your sideline.
More...
 
Quote from TraderZone:

Quote from mastacoli71:

So, if you have the passion and drive to succeed in trading, you can make it. Don't let anyone tell you differently.

Not so good advice. Most who try this, will lose the income from the job plus blow a lot of money, and wind up back in their old job. Replace "trading" with "want to study to become a neurosurgeon" and imagine the complexity and expense trying that. The previous poster who said maybe 1 in 10-20 make it is more correct. Most people who try this will lose their money very quickly.

I would recommend full time if you can swing it financially. IMO, it is like any other career...long hours, hard work.

Start out on the side for a while. Since you work, explore position trading (holding for several days, not minutes). Keep you job until money is pouring in from your sideline.
More...

Disagree but everyone is entitled to their own opinion.

This is what everyone cautioned me about when I got into the industry. Had I not tried, I would have never known.

A lot of traders that do not make it lack trading discipline. Just simply position trading will never get one into a position to start trading full time unless they gain the discipline and understand the strategies they are trading.

You sound like 80% of the people that I talked to before making the switch. Glad I did not listen to them otherwise I would not be loving my job like I do now.
More...
 
Quote from mastacoli71:

Disagree but everyone is entitled to their own opinion.

This is what everyone cautioned me about when I got into the industry. Had I not tried, I would have never known.

A lot of traders that do not make it lack trading discipline. Just simply position trading will never get one into a position to start trading full time unless they gain the discipline and understand the strategies they are trading.

You sound like 80% of the people that I talked to before making the switch. Glad I did not listen to them otherwise I would not be loving my job like I do now.
More...

You sound like the few who made it in the lottery - "works for me!" Unfortunately, it works for almost no one else. You cannot use yourself as a reason everyone else should pile in. The stats for the masses who trade is not promising.

Anecdotal evidence and testimonials is never a reason to do something.
 
I say take a calculated risk and go for it. As long as you can support yourself with savings and you don't burn bridges at your current job you can leave yourself some options if you fail. Set up a plan that will tell you how long you can support yourself, and that will leave you in an OK position should you fail. If done properly, you can give trading a shot without ruining your life --despite what people may tell you now. Dont look back later on in life and wonder what if.
 
You must log in or register to reply here.
Back
Top