Leaving old job to start trading...book request

Thanks Jimmy

I am with you the psychology part. Im 110% more relaxed doing this than I was at my other job, and Ive got no doubt this will work. I'm adequately capitalized and have two dogs :) So...sounds good.

I mostly focus on credit spreads and a few directionals when trending is in fashion, not during the summer. Summer has been great for my iron condors though.

Thanks again!!!

Chris
 
Quote from TinGull:

Hi there,

I'm curious as to if anyone knows of any books relating to psychology of the self employed? I'm about to leave my job and have never been "on my own" before and found that psychology studies of traders helped me a ton with my trading game....now I'd love to learn more about the self employed. For any of you that took the leap from your regular job to just living off of your trading, were you nervous initially? Or did you just figure...heck, it's just too expensive to stay at my old job and it's a lot more fun!!!


Thanks all
Chris
More...

You will be back to slingin burgers in less than 2 months.
 
Tin, you might thank guys like him one day . I know alot of situations just like that were someone says your never do it , your not going to make etc.. and they did, just to prove them all wrong ! food for thought for what its worth ..
 
I'm sure it helps some folks, but I've given up on proving people wrong and doing things for reasons other than my own self worth. It's not worth my time anymore to listen to people on this forum drop negative lines all the time. I don't understand how some can get along in life thinking so negatively all the time.

Thanks
 
Quote from TinGull:

I'm sure it helps some folks, but I've given up on proving people wrong and doing things for reasons other than my own self worth. It's not worth my time anymore to listen to people on this forum drop negative lines all the time. I don't understand how some can get along in life thinking so negatively all the time.

Thanks
More...

If you're going to post on ET you'll see lots of negative people, likely people who couldn't make it as a trader.

Anyone can make it. I left my corporate job 10+ years ago. It takes hard work and perseverance. And you have to be adaptable to the market. As it changes your methods or trading style may need to change.

As far as any books ... Market Wizards might be useful. With some of them you'll see how they may have failed initially but came back and ultimately succeeded.

Trade small initially ... gain some confidence in winning trades and a decent percentage and forget about how much $$$ you're making especially if you have other income to support you along the way.
 
As in any business it will take 2 to 3 years before you become profitable if at all. So expect using your trading profits to fund your studio in at least 3 years from now. Not being negative but realistic.
 
Thank you both kindly for your replies. I appreciate it. And yes, I understand it'll take some time. I've been at it a year now, and have begun to spread trade with great success. Directionals still scare the crap out of me, so i just paper trade until my confidence in my stragtegy is there with my spreads.

Thanks once again
Chris
 
chris, the people who are nice to you on this board are the people who make money trading i.e. they always appreciate new blood when they see it, since it's like virgin money to them....

those who are not so nice are the other 90% who are frustrated by the 10% who keep taking their money....:)

nobody's fault, just the way the business works, nothing personal....

cheers & good luck !!
 
Thanks for an interesting thread Tin. I think and hope that I will be in your situation within one year.

The technical and financial part seems to be the easier one; it is a matter of statistics and calculation.

When you design a bridge, you know the expected load so design it to hold for that load multiplied by a safety factor. I have set my safety factor in trading to 5, i.e. the expected incomes from trading should be five times the expected expenses for living.

When you design a bridge you also design it for a flow that will probably happen in 500 years, but not for a flow that will probably happen in 5000 years. It is just to accept the fact that you can't avoid risk altogether. I have decided to set aside money for two years living, should all the markets I trade suddenly change at the same time and my methods wont work any more. That should give me enough time to research new methods.

When those safety measures are fulfilled I will quit my job. I like my job, but I am a weekly commuter and I want to get rid of that commuting.

But then there is the mental part. How will you feel when you don't go to work any more when all your friends are doing so? Will you miss colleagues? Will you work from home or rent some place in an office hotel? If you have two dogs and a music studio, I suppose you have an answer for yourself, but I am not sure I would like to work from home.

You can prepare for the unexpected in the markets, but how do you prepare for the mentally unexpected? Perhaps Hook N. Sinker gave a good advice; be prepared to feel nuts and crazy for some time.

By the way, I have have ordered the book you mentioned, "Why Aren't You Your Own Boss".
 
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