Engineer looking to make a career change into trading
- Thread starter sneakoner
- Start date
That's a noble objective. I will venture to say that any trader who has not lost some significant amount of money at the beginning would not grow to be a successful, profitable trader in the long run. Like a box fighter who has not taken a punch during the first few games going to the heavy weight championship. A tennis player who has not seen a 100+ mph Ace serve going to the US Open. A skipper who has never capsized his boat crossing the Atlantic Ocean.
It is our battle wounds that keep up on the edge. To vow not repeating the same dumb mistakes. To survive first before seeking victories.
RE: Day trading. Personally I would not recommend day-trading as a start. Let alone jumping to it with both feet and quitting your job. Consider day-trading as a sports car among different styles. Yes it can take you from 0 to 60 in a jiffy. And... you haven't driven a car before. Day-trading requires quick decisions and quick reactions, based on experience. So... good luck.
Apparently many of us here, your truly included, are engineers. I can only repeat what has been said already - keep your day job and swing trade. There will be times when you think you should be a full time trader and there will be times when you are glad to have a day job bringing in a regular income. There is something to be said about multiple income streams!
I have a client in California who is a full-time PE and who recently started swing trading futures spreads in the live markets.
He spent several months paper trading, and then after funding an account with Advantage futures he traded on the SIM for several weeks before finally going live. The idea is that for exchange-supported implied spreads, he can work both stop-limit GTC orders for both the stop-loss and the profit targets.
IMO, it is indeed a luxury if you don't have to force trades into the marketplace. The 'real job', if managed properly in conjunction with a very good swing trading system, makes it all a practical possibility.
After three weeks trading one-lot spreads, he is up about $600 NET NET. That is just fine - the idea is to apply the trading system correctly in the live marketplace, and to learn how to survive and build capital methodically.
He spent several months paper trading, and then after funding an account with Advantage futures he traded on the SIM for several weeks before finally going live. The idea is that for exchange-supported implied spreads, he can work both stop-limit GTC orders for both the stop-loss and the profit targets.
IMO, it is indeed a luxury if you don't have to force trades into the marketplace. The 'real job', if managed properly in conjunction with a very good swing trading system, makes it all a practical possibility.
After three weeks trading one-lot spreads, he is up about $600 NET NET. That is just fine - the idea is to apply the trading system correctly in the live marketplace, and to learn how to survive and build capital methodically.
Yes I will stick to swing trading for now. Well actually the next step is to develop a trading plan, select a basket of ETFs and equities with high volatility and simulate paper trades for the next few months. I will tweak my plan and strategy accordingly until I feel comfortable going live.
Thank you for your input.
I have had, currently and in the past, three institutional clients in the area of spread trading, correlations, and arbitrage. Due to client NDA agreements, I typically only can carry one institutional client at a time.
I have had over the past few years over 50 clients who are also ET members. Most are on the very experienced spectrum (full-time professionals who do it for a living), but I do take on clients from time-to-time who have shown some limited competency in the markets on their own, and in my eyes display some potential to work with, but would not be considered 'professionals' in the strictest sense of the word. My Engineer client in California would be considered the latter.
In some ways, it's easier for me to work with the less experienced in the sense that I have less client 'baggage' to contend with. I am constantly amazed by the human psyche's ability to self-sabotage. Occam's Razor.
I have had over the past few years over 50 clients who are also ET members. Most are on the very experienced spectrum (full-time professionals who do it for a living), but I do take on clients from time-to-time who have shown some limited competency in the markets on their own, and in my eyes display some potential to work with, but would not be considered 'professionals' in the strictest sense of the word. My Engineer client in California would be considered the latter.
In some ways, it's easier for me to work with the less experienced in the sense that I have less client 'baggage' to contend with. I am constantly amazed by the human psyche's ability to self-sabotage. Occam's Razor.
Something similar but not exactly a day job. I'm a sleeping Partner in an engineering firm co-owned with a friend. I'm not on payroll but on a shareholding pay arrangement.
I have found swing/position trading very boring so I now kill time as a Consultant in the firm rather kill time by time killing my account day trading. In other words I'm more active in the firm but not on a day to day operational basis, more of leading concept designs, client interface, design checks and resolving disputes, etc - part time stuff.
I'm not an introvert so spending time alone day to day at home drove me nuts. Kids at school, wife at work.
Here is my definite response to you as a trader with PhD in EE who is 50 with 16 years of trading experience.
1-I don't know what is your age and what field of engineering you are. Don't be proud of your degree. Many high school grad will eat you alive in trading. Most of the compliments to you come from engineers. Actually they are complimenting themselves.
2- Don't be so sure that you can always go back to your work after quitting. When you are out of your field for a year or two, you are almost unhirable.
3- I guess most probably this desire comes from your "few" recent profitable trades. Take my challenge. Start from today and try to make 10% in the next 6 months. So if you have 50K, just make 5K in the next 6 months. Remember you can get 200K margin with your 50K in your regular trading account instead of 500K in prop firm. So you just need to make 5K in 200K capital. If you reach that goal, come to this thread and lets talk.
4- During that 6 months period, don't spend a dime from your salary. Put all in the bank and don't touch it. Rent, food, bills should come from your trading account or your saving and not your salary.
1-I don't know what is your age and what field of engineering you are. Don't be proud of your degree. Many high school grad will eat you alive in trading. Most of the compliments to you come from engineers. Actually they are complimenting themselves.
2- Don't be so sure that you can always go back to your work after quitting. When you are out of your field for a year or two, you are almost unhirable.
3- I guess most probably this desire comes from your "few" recent profitable trades. Take my challenge. Start from today and try to make 10% in the next 6 months. So if you have 50K, just make 5K in the next 6 months. Remember you can get 200K margin with your 50K in your regular trading account instead of 500K in prop firm. So you just need to make 5K in 200K capital. If you reach that goal, come to this thread and lets talk.
4- During that 6 months period, don't spend a dime from your salary. Put all in the bank and don't touch it. Rent, food, bills should come from your trading account or your saving and not your salary.