Quote from 1Reason:
My second question has more to do with going pro.
What would you say is minimum amount of capital that someone should have to work with if they wanted to trade full time?
Thanks again
More important than the starting capital is the amount of money you need to set aside for your first year expenses.
The number one reason most people fail at full-time trading is that they try to rely on the trading account for monthly expenses.
If your expenses are $5,000/month (mortgage, food, medical insurance, etc), then make sure you have 6-12 months or $30,000 to $60,000 in reserve outside of your trading account.
Take a look at Lescor's 2006 equity chart on the first page of this thread. You will see that he went about 9 months without making much money, using this strategy.
Yes, it all worked out in the end, but you would have needed to pull 9 months of living expenses out of your account waiting for the last 3 months of profitability. Lescor is one of the best at this strategy and he does have other strategies, as well.
There will be some long, flat periods, make sure you have enough in reserves to wait them out.
Good Luck.
