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Should I quit my job and trade for a living?
- Thread starter BillySimas
- Start date
Quote from BillySimas:
Since I work for a brokerage firm, I know this first hand. The same statistic is applicable to poker players as well and I beat the odds there evidently. I actually
do think I have a better understanding of trading than 98% of people out there who get into this. It's obvious that very few people really know what they're doing so that stat doesn't bother me that much. I clearly see that I have more knowledge and experience than the vast majority of people so why bother comparing myself to them?
Ignorance-
"So people who know more about a particular subject have the ability to predict the future. Interesting postulation. I think this has been covered in the Black Swan though. It is known as epistemic arrogance"
Quote from BillySimas:
I scalped there and did it miserably, that style isn't suited to me at all...
I only have 10k in savings...
I have no trading profitability yet to speak of...
I work at a brokerage firm right now and I make a little over 50k a year.
These are your statements that stood out to me.
With $10k there are only really two ways you can viably trade for yourself - scalping, or making big all-in bets via options. Anything else you are hopelessly undercapitalised for.
Secondly, you actually have a decent job for a wannabe trader - you earn an ok salary and work in the industry. So you can just follow the markets at work as part of your job, and learn on your employers dime. Effectively you get paid $50k a year to learn the markets.
Your savings mean you should not quit. Your job means you should not quit. And your trading approach must be overnight & longer-term - again this means you should not quit.
IMO your best option is stick with the job, save every dime that you can (should be easy living with your mother), and trade and invest medium/longer-term for your own account. Set aside say $5k a year in risk to speculate with (i.e. your losses in 12 months must not exceed $5k). Take copious notes on all your trades, mistakes made, lessons learned. Study the markets like a maniac.
After 2-3 years of this, if you have any inherent trading talent, you should find that you are making progress. Just keep going with small size and limited risk until you become consistent.
Once you have say 3 profitable years in a row, you should still not quit - rather you should show your firm what you have been doing, and ask about getting backing to set up a company account. Negotiate a profit split (e.g. 10% of profits) and then trade firm money - you would then be effectively a hedge fund manager on a salary, pretty sweet gig.
Quote from TraderZones:
Doubtful, because it is quite apparent you do not understand. People here don't know each other. We go by their posts. Yours was naive and wide-eyed. The sad thing is, you get offended rather than listening. That is a sign of immaturity.
Your posts are just insulting, it's not productive advice. Just leave us all alone please and keep your anger to yourself, thanks.
Quote from Ghost of Cutten:
These are your statements that stood out to me.
With $10k there are only really two ways you can viably trade for yourself - scalping, or making big all-in bets via options. Anything else you are hopelessly undercapitalised for.
I agree. This thread is done. Thank you kindly to the people who told me it's a bad idea in a CONSTRUCTIVE way. Some of you are really a bunch of losers.
I think it may depend on how you define "scalping." Apparently, there is a number of interpretations. However, it does seem that the underlying thread is one of fairly short trade duration, at least insofar as losing trades are concerned. Therefore, if you can develop a suitable method for the right instrument(s), you can intraday swing trade with "scalp-sized" protective stops. (Much easier said than done, but entirely possible.)Quote from BillySimas:
I agree...
Quote from Trader666:
If you quit your job now and trading doesn't work out for you, how much longer will you have to live with your mom? You're 30 and you have a job so think about supporting yourself. Save enough money so you can move out on your own and become independent. Then trade part time while you still have your job until you're successful enough to quit. Trading for a living is harder than supporting yourself with a job and I think your odds of succeeding are greater when you're standing on your own two feet so don't put the cart before the horse.
+1
Trader666 just made the transition to assisted living from his mom's place. Congratulations 666. Baby steps.
for potential new traders this bio is worth reading and comparing to you present path.
An optimum path includes
0. recognizing being a full partner with the markets is required.
1. learning to learn.
2. knowiing how the mind works.
3. Doing purposeful tasks to build inference in the mind. (A foundation plus the building blocks)
4. Filling in, purposefully the pieces to allow for putting the pieces together to enjoy a full partnership with the market.
Billy chose to have three dependencies.
1. edges.
2. someone else's software.
3. going back home.
See attached bio.
An optimum path includes
0. recognizing being a full partner with the markets is required.
1. learning to learn.
2. knowiing how the mind works.
3. Doing purposeful tasks to build inference in the mind. (A foundation plus the building blocks)
4. Filling in, purposefully the pieces to allow for putting the pieces together to enjoy a full partnership with the market.
Billy chose to have three dependencies.
1. edges.
2. someone else's software.
3. going back home.
See attached bio.