Hey Guys,
I'm considering leaving my job to start day trading full-time from home.
Day traders: Think you could tell me some pros and cons of that lifestyle?
Best,
Fat Mensch
CONS: Your first 100-150% will go towards commissions, you will be trading against machines for the most part and some of those who designed the programs have over 30 years of experience. Expect to lose 1-10 accounts before learning how to not lose as often, you are your own worst enemy for lack of understanding price action, unlearn indicators till you know what the price will show the indicator to do something, know the differences of what time and sales might be telling you, back test early in the morning till late at night, better know how to program, and know all the answers before the questions. Prepare to learn all the worse parts about yourself, depression, anger, frustrations...could be for years.
PROS: you can make limited money cause the markets in futures and stocks have heavier volume right after opening for first 45 to hour after, try pushing several hundred lots in Index Futures without slippage after that first hour expect ticks of slippage, and when you need to get out, expect even more slippage, whether futures or stocks, when their is no one will to take the other side, it is going to cost you huge. If you can become that 1%, you never have to worry about money again.
I recommend you demo a method and when you can triple that demo three separate times, then start part time, when you have saved enough for six times what you need for year's worth of living expenses, ask for leave of absence of change shifts, or get a part time job to have something coming in, lots of expenses at home people don't realize when they quit working and emergencies that can come up. I didn't quit my job till I had three million in savings. I kept thinking it was luck and would soon go back to losing. But I was already doing well in very long term stocks and commodities.
I think it is easier to learn longer term trading first and when you making profits then go to smaller timeframes, gives you more time to memorize as they is so much you have learn to breath it in.
Good luck and expect to work years of 90 hour weeks.
