Any advice for a soon to be full-time trader?

[Howard]

So, worst case scenario for me from here is that I waste my savings and get back in my old job, but probably with a higher base salary.

Another scenario would be that I find a better paid job which is less stressful and can be more easily combined with trading.

Best case scenario is of course that I actually make it.

For me, this bet makes a lot of sense.

 

[ironchef]

Hi all,

I quit my full-time job earlier this year to focus on full time trading. October will be my last month in the work force. After that, I'm on my own as a full-time trader.

I'm just curious if anyone who's once been in a similar situation or am in one currently have any advice to share that can be valuable moving forward?

I'm not really seeking advice on trading methodology as I'm feeling fairly confident in what I have there and have my own stuff to focus on, but anything else would be of interest.


Some background information about me:

- I have an account size of just over $15K. I day trade US index futures.

- I have savings to cover living expenses for 6 months.

- I have a standing job offer with another firm and can also get my old job back if needed.

- No kids. Just a needy girlfriend who feels she sees too little of me.

- I've been full time trading twice earlier. The last time, I was severly undercapitalized and simply had to quit because I was broke. I didn't 'blow up', but slowly bled to death and had to eat.

- I've been exposed to the markets on/off for 12 years by now and have devoted long periods of time to serious market study and research. I have proprietary tools developed to aid my market analysis and research. So, I'm not new to the markets.

My initial plan was to trade part-time after work and slowly build my account, but it turned out to be much harder to do than I anticipated and I quickly felt burned out juggling these two on <= 5,0 hours sleep. Especially since my day time job is very demanding/stressful and I can't always leave on time either.

Because of this and since I feel I have options otherwise, I decided to quit my job and finally try full time trading with full focus once again.

One thing which will be different than earlier is that I will try to focus on consistency of returns instead of trying to hit home-runs every single day. This is something I can afford doing now since I'm not pressured to do so. Of course, in order to succeed, I need to make money, but I think slow and steady wins the race.

Thanks in advance for any advice on this exciting journey.

Best regards and thanks for reading.

Howard

So, worst case scenario for me from here is that I waste my savings and get back in my old job, but probably with a higher base salary.

Another scenario would be that I find a better paid job which is less stressful and can be more easily combined with trading.

Best case scenario is of course that I actually make it.

For me, this bet makes a lot of sense.

Have you considered doing it the easier way:

Keep your day job, save/invest until one day you don't need that day job to put food on the table for a long long time, then quit and trade full time using a small % of your nest egg?

This way, no pressure, no need to worry about drawdown and every Mon-Fri is like going to Vegas and have fun?

 

[Howard]

Have you considered doing it the easier way:

Keep your day job, save/invest until one day you don't need that day job to put food on the table for a long long time, then quit and trade full time using a small % of your nest egg?

This way, no pressure, no need to worry about drawdown and every Mon-Fri is like going to Vegas and have fun?

The thought may have crossed my mind, but I just don't see myself doing that in my current job. If I were to follow your proposed path - I would at least need to make sure I found a job I enjoyed at least a bit more than the current one. Not to mention one that's paying more.

So, I'm pretty sure quitting at least this job is the right move.

 

[ironchef]

The thought may have crossed my mind, but I just don't see myself doing that in my current job. If I were to follow your proposed path - I would at least need to make sure I found a job I enjoyed at least a bit more than the current one. Not to mention one that's paying more.

So, I'm pretty sure quitting at least this job is the right move.

Perhaps as a back up plan, (and you need a backup), find a job you enjoy to accumulate "AUM" at the same time sharpening your method/strategy.

I am an amateur retail who took this path years ago, trade my own funds full time since 2010. Of course I started in 2010 with way more than $15K.

Good luck and best wishes.

 

[Howard]

Perhaps as a back up plan, (and you need a backup), find a job you enjoy to accumulate "AUM" at the same time sharpening your method/strategy.

I am an amateur retail who took this path years ago, trade my own funds full time since 2010. Of course I started in 2010 with way more than $15K.

Good luck and best wishes.

Yes. Maybe even an 80 % job where I quit early on the day (if possible) and can go home to trade. Let's see...

Are you successful trading your own funds full-time?

Thanks and same to you.

Howard

 

[Louis_tr]

I have always seen people taking trading as their full time career, wishing to quit from it very soon. I hope you aren’t the next one. Dive in into the profession with full passion and confidence and use your knowledge to your advantage. Best of luck.

 

[WealthSignals]

Maybe we can even help you get started with your new career. Since you'll be trading anyway - and if you're good at it - then create a trading system (or more than one) and post your trading signals on WealthSignals.com. We'll keep track of your system's out-of-sample trading results, you can develop a reputation, attract subscribers, and earn money for very little extra work. Best of all, it's free for trading system authors. Robert -

 

[ironchef]

Yes. Maybe even an 80 % job where I quit early on the day (if possible) and can go home to trade. Let's see...

Are you successful trading your own funds full-time?

Thanks and same to you.

Howard

Full time since 2010 after I no longer needed my day job, profitable every year except 2011.

I said it many times, I decided to bet with the bull market from the beginning and it is not surprising the outcome were good. If I started in 2000 and trade the same way, I would probably be wipeout.

I am trying to find a more market neutral approach because I believe this cannot go on much longer.

Best wishes to you.

 

[Howard]

Maybe we can even help you get started with your new career. Since you'll be trading anyway - and if you're good at it - then create a trading system (or more than one) and post your trading signals on WealthSignals.com. We'll keep track of your system's out-of-sample trading results, you can develop a reputation, attract subscribers, and earn money for very little extra work. Best of all, it's free for trading system authors. Robert -

Thanks for the suggestion. Currently, I'm limited to intraday trading, so it seems like I'm not eligible for your services.

Full time since 2010 after I no longer needed my day job, profitable every year except 2011.

I said it many times, I decided to bet with the bull market from the beginning and it is not surprising the outcome were good. If I started in 2000 and trade the same way, I would probably be wipeout.

I am trying to find a more market neutral approach because I believe this cannot go on much longer.

Best wishes to you.

Great. You've done very well then.

Hopefully, by now you're prepared for if and when this bull reverses.

Thank you and same to you.

 

[SteveM]

- I have an account size of just over $15K. I day trade US index futures.

Not sure if anyone in this thread has said this, but if I were in your shoes I would be looking to trade stock options rather than index futures.

If you get emotional and make a bad decision in index futures - say doubling down on a losing trade and buying another 2 contracts, that poor decision will be enough to wipe out $10,000 of your trading capital before you know what hit you.

On the other hand, you can get involved with options trades where you will not lose more than $300, as long as you have a shred of discipline....unlike futures where 6 Emini points is worth $300 bucks, and 30 point moves occur at least once per month.

Plus with options, underlying price isn't the only way to win - learning how to use time, price, current volatility and expected future volatility can all give you ways to structure profitable trades.

Obviously, you never want to be selling naked calls, puts, or straddles with a $15,000 account, just get long on positions with 1 or 2 options contracts max, and you should be okay.

I think you are far more likely to make money doing that then trying to trade futures outright.

Just one guy's opinion.