How does one know if he is ready for full-time investing/trading?

[helpme_please]

What are the signs to look out for to know one is ready? Conversely and perhaps more importanly, what are the signs to look out for to know one NOT is ready?

I would like to hear from those who have been there, done that and most probably wiser.

 

[p0box4]

So i assume you already are trading for a longer time since the question is to know when one is ready to go full time.

There is only one answer, when you are consistently profitable for a longer period of time and when you can comfortably live of your profits.

 

[helpme_please]

So i assume you already are trading for a longer time since the question is to know when one is ready to go full time.

There is only one answer, when you are consistently profitable for a longer period of time and when you can comfortably live of your profits.

Thank you for the reply. May I ask what would you consider a reasonable period of time? 2 years, 3 years, 5 years or even longer?

 

[p0box4]

Thank you for the reply. May I ask what would you consider a reasonable period of time? 2 years, 3 years, 5 years or even longer?

Depends on how solid the returns are.
As long as you make enough to life of and have some spare cash in a bank account to overcome a period of no income or draw down you should be fine.

 

[HappyTrader]

You know you are ready when you realize you consistently (a few years+) make more money trading than from your day job.

You realize your gains would increase if you did not have to spend time in your day job (for example, day job eats up time that can be used to make profitable trades/strategies).

You realize that we're in the middle (depending on who you ask) bull run and profits are a lot easy now compared to 10 years ago. And you have a plan for when everything goes bat-crazy tomorrow!

You have a sizable cash cushion to survive when you find out you were not ready

 

[Handle123]

3 years and 3 million in the bank, house paid off and have few rentals for a hobby, then give it a shot.

 

[Ryan81]

Don't underestimate the psychological impact of having trading as your only source of income. It's one thing to be trading (on the side) at a point in time where your 9-5 job is going to pay your living expenses, and it is totally another thing to feel like you are pressured to profit by a certain amount in a given amount of time. The latter case can cause you to make bad decisions.

 

[lawrence-lugar]

What are the signs to look out for to know one is ready?

Trading is kind of like first having sex...you will just know, and feel, and want to do it...when you're naturally Ready
Sure, the initial experience may be awkward...but it gets better as you improve.

 

[drcha]

Here's a suggestion: keep working but live off your trading account. It will help you to feel what it's like to be living off your seed corn. When you have been banking your paychecks but not touching them for some predefined amount of time, you are ready. You have to make sure you can trade through different kinds of environments. Also, make sure you understand inflation and what it can do to you. Having enough money forever means that you have enough not just for today, but for tomorrow if tomorrow is more expensive.

 

[Redneck]

How do one know if he is ready for full-time investing/trading?

One shouldn't..., and if one does.., they are delusional and bullshitting their self

How can one "know" with no foundation.., no history..., no facts upon which to base "knowing"

What are the signs to look out for to know one is ready?

Not affected by profit or losses
Process / routine centric (to the point of being anal retentive about it)
Able to be completely detached..., objective..., centered
Completely able to manage one's self in all situations
Has ego quieted
Can repeatedly do the completely correct thing - yet have the result blow up in their face - repeatedly - and not be affected in the least
Must be completely self reliant - up to and including the exclusion of all family..., friends.., and enemies
Must be completely honest
Must be able..., willing..., at peace - with losing
Must understand / accept..., trading is not about the money
Must understand..., accept - all forms of risk associated with trading
Must understand..., accept.., be able to operate in uncertainty
Must be able to operate above..., and in spite of their human-ness
Must be disciplined - way beyond that which they have ever been required to
Must be patient - way beyond that which they have ever been required to
Must be ruthless.., to a fault

Further

Must understand the real..., and underlying forces driving the mkt
Must be able to read price
Must be able to not fall unto predicting
Must be able to.., at a minimum..., survive the various mkt cycles

Conversely and perhaps more importanly, what are the signs to look out for to know one NOT is ready?

Any degree one is not in total compliance with any of above..., is the degree to which they are not prepared

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Likely I've over looked some aspects..., nonetheless - these are the facts of the matter in which you inquired

Proceed in your own best interest

RN