Purchase of Home or Trading Biz?

I won't say he died because of weak emotional balance.
I think this guy made a killing had an amazing life. But certainly at the end he had no more sthrenght to fight back.

Trading is certainly a fight with ourselves and if you stop fighting then yoiu are dead.

However, JL is a great example for all of us. He started at 16 with nothong and became a millionaire very quickly.
He understood everything about the markets and he always acted alone. This guy made a 100 million dollar gain in 1929.

I don't thgonk there are many people that can do the same, not even G Soros. The more extraordinary thing is that this guy did it with his own money.
 
Before I start...I thought Livermore was a fictional character..and the Reminsence of Stock Operator was written by a journalist not a trader....But anyway...

Here are my resolutions..After all the advice...

1..KEEP MY DAY JOB...I like the advice about keeping your dayjob..Someone said keep the checks coming and let them fire you..Atleast you can collect unemployment, severance..etc...

2. FORGET ABOUT THE HOUSE FOR NOW...or atleast save for 5% down to get to affordable house some day..Dont even think about 20%..That would sobatage my trading capital of trading biz

3...TRADE IN MORING HOUR BEFORE WORK...I have a good hour and 1/2 before going to work where I can trying daytrading markets....I WILL TRADE WITH MORE COURAGE and use maximum leverage 4x..Since I know I still a have day job...BESIDES I HEARD MOST ACTION IN MORNING

4..GET TAX ADVANTAGE AS A TRADER...Make sure I trade very actively and everyday if markets condtitions permit to get tax advantage as professional trader by IRS standards...I would assume I would have to make a substantial amount of income and be very active to get this status..Who knows maybe morning trading will some day exceed my anual income so I can get these tax breaks...Accoding to IRS code you can deduct business expenses etc if you are professional trader..You can even deduct office space in your home and interest on loans..HEY THAT WOULD BE NICE

5..Someday register trading business as a coorporation to get more tax advantages (www.activetradermag.com comes out with good tax articles every month...Can get subscription for magazine on the site..)

6...Then If my stakes is big enough 500k-1 millions...THEN QUIT MY DAY JOB

PS: I Know I sound like a winey egotistical idiot but I am enjoying this thread and maybe it is helping those other individuals that are in a similar situation thinking of embarking on trading biz

PSS: FINAL CONCLUSION:: Substantial Capital is the bread and butter of a successful trading biz..There are always alot of issues that we are faced with (ie: house, marraige, etc..) that can sabotage the bankroll...I guess you got to decide what is your true passion or atleast juggle everthing successfully....OK I said enough...I am starting to annoy myself..Man
 
Topgun

" I have a good hour and 1/2 before going to work where I can trying daytrading markets...."

90% of my trades are done during the first hour and a half the market is open. .
 
He really existed and reminiscences is a fictional story with a trader named Livingstone. Many believe this trader is livermore.
The writer Edwin Lefevre was a journalist.

Nevertheless, Livermore wrote a book named : How to trade in stocks. Not too bad.

Good luck topguntrader. I think your current choice is good

Take care
 
Why is it you make the majority of your trades early on ? Is it because thats when there tends to be the most movement ? Some recommend avoiding the first half hour due to the volatility , whipsaws etc.
 
Originally posted by topguntrader

3...TRADE IN MORING HOUR BEFORE WORK...I have a good hour and 1/2 before going to work where I can trying daytrading markets....I WILL TRADE WITH MORE COURAGE and use maximum leverage 4x..Since I know I still a have day job...BESIDES I HEARD MOST ACTION IN MORNING
More...

Be careful with leverage. It is a double edged sword. Can cut you just as easily. If you are starting out keep your risk in check. It is a lot easier to recover from a 10% drawdown which takes 11% return to get back to even compared to a 50% drawdown that takes a 100% return to get back to even.


Babe714 when I trade my momentum systems I tend to make 80% of my money in the open. It's where the majority of the movement happens.

Robert Tharp
 
that's a lot, here's a suggestion, move into the slums while you start day trading. This will help you in the following ways:
1) when you first start day trading, you will have bad days. If you live in some manicured lawn neighborhood, you will feel REALLY bad when you come home after losing money when you see your spiffy lawyer/doctor type neighbor drive home in his rental Q45 cuz his Jag's in the shop (Jag's seem to always be in the shop). If you live in the slums, when you have bad days, you will easily find someone who has it worse.
2) and more importantly you will find out what type of a lady you are getting mixed up with. Girls who will go out with a 80K a year type guy are a dime a dozen. The REAL test of a woman is whether she will stay with you while you lose money and live in the slums. My wife moved from Florida to New York while I finished school and willingly lived in a FRATERNITY house for a year and a half. Needlessly to say I have no question that I am set for life in that department. These are only some suggestions, always do what you want, and even though you don't have all the answers now time will give every one to you.
 
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