You sound like you haven't really traded much. So, if I were you, I'd consider keeping your job and trying to trade on whatever free time you have to see if you think it is even possible that you could make money. Most people fail at it. So the cons of day trading for a living is that, there are probably more people living as actors than traders.
Pros and Cons of Day Trading
- Thread starter FatMensch2K
- Start date
You sound like you haven't really traded much. So, if I were you, I'd consider keeping your job and trying to trade on whatever free time you have to see if you think it is even possible that you could make money. Most people fail at it. So the cons of day trading for a living is that, there are probably more people living as actors than traders.
L
lovethetrade
Yes, and the need to be in and out of trades before EOD and trading small time frames can really screw with your head. I recommend long or medium-term trading/investing for a few years before going anywhere near day trading.
Robert Morse
Sponsor
Pros:
Have no risk while not active.
Requires less capital than long term investing to make a living.
Take advantage of the opportunities of the day.
Self employed
If you trade 1256 contracts, lower tax rate
No SS tax
No commute
Choose your own hours
Unlimited potential if properly funded and trained
Cons:
Harder to build credit for loans like a mortgage.
Pay for your own health insurance and other benefits
Responsible for your own retirement planning
Can only make money on your own labor
No trading, no income.
All I could think of at 5am
Have no risk while not active.
Requires less capital than long term investing to make a living.
Take advantage of the opportunities of the day.
Self employed
If you trade 1256 contracts, lower tax rate
No SS tax
No commute
Choose your own hours
Unlimited potential if properly funded and trained
Cons:
Harder to build credit for loans like a mortgage.
Pay for your own health insurance and other benefits
Responsible for your own retirement planning
Can only make money on your own labor
No trading, no income.
All I could think of at 5am
"Day Trade" overnight in a foreign market, while keeping your day job.
Robert Morse
Sponsor
I guess sleeping is overrated.
Blow up before bed time.
The replies you've received so far are most likely not what you expected, or wanted, to hear.
But the fact is that almost everything that's been posted is very true. So if you're not prepared for a long period of study and work before you leave your job just to find out if you have the ability and also if you can develop the skill required to be a trader, it would be best to stop right here. But if and when you have developed the skill that's needed and are comfortable leaving your job, you'll need even more study and work and without the security of a paycheck every month.
Robert Morse
Sponsor
IMO, building your trading skills in off hours makes sense. When you have found a winning strategy, trading is an all in job. It requires adding to you skills and knowledge constantly looking for you edge. Hard to do part time if it require short term ideas. Position traders are better at doing it part time.
I find a lot of traders in California use morning hours to trade and then go to work. That 3 hours gives them enough time to DT during an active time of the day and provides some balance.
I find a lot of traders in California use morning hours to trade and then go to work. That 3 hours gives them enough time to DT during an active time of the day and provides some balance.
L
lovethetrade
Cons
Day trading is A LOT more stressful and traders underestimate the importance of this.
Day trading is A LOT more stressful and traders underestimate the importance of this.