Took out a loan to transition to full-time trading. 24 years old.

What are you going to trade so I know who to thank when you lose it? Trading stressful enough, but to have to pay 26% is insane, I had found people who save enough to trade nights or early morning before work actually eventually do better than the road you going down. I didn't quit my job till I had 3 mil in the bank, house paid, zero debt, couple side businesses going and house rentals. So I would have zero stress on personal life side. Build up reserves before quitting that job, you have to have health insurance etc....What happens if you break a bone in your mouse hand?

If you are that good, do Topstep, then you wouldn't need funds.
 
Why didn't you just save $11,000 and start trading without borrowing $11,000.... with your salary you could easily save about $10000 in 6 months...
Unless you eat out every night and drive a 6 series BMW.
 
Don't know how long you took that loan out for but if you took it out 3 years you would be paying $5000 in interest on that $11,000 loan over 36 months at 26%
 
wabu27 said:
Hi guys - in need of your opinions.

I'm thinking about quitting my current job soon and trade full-time. I'm 24, been working for 1.5 years at a finance firm, and make little under 60k per year. Right now I have $9000 and I just took out a loan of $11000 from lendingclub which is going to be deposited into my bank account in less than 4 business days (26% APR). My current plan is trade safe until I get to $30000 then start day-trading. I don't have experience daytrading with real money due to lack of capital but I think I'll be able to make make consistent returns while cutting my losses short.

The reason I think i have a talent in trading is (haha..) my experience from virtual trading. Using $100,000 account with 2x margin ($200,000 buying power) I was able to consistently make at least 2% returns a day while keeping my losses to 1% a day. I participated in virtual stock competitions and finished first places. I developed my own trading style and later found out it was a mix of what people refer to as momentum trading and technical trading.

I've also traded during college and used the profits to pay for rent, phone bills, living expenses, etc. Please note I had about $5000 at the time and I was able to make $1000 (~10% return a month due to leverage) in most months. This was under PDT restrictions. Due to the stupid PDT rule once I went under for a month and because I was paying bills, in the long run I lost money. But every year it's always positive a couple thousand, then slowly sliding down to end the year in the red after that "one month" of negative returns.

I told one friend about my loan and while all he said was "I think that's too risky. Well, you might get lucky but don't do it again", his initial expression was "WTF is he crazy?".

I understand what I'm doing is extremely risky, but I always thought I had a talent for trading and it came off as easy to make at a percent a day. I also never keep my trades overnight. Any thoughts on my stupidity?

Should have asked for people's opinions before taking out my loan, but the dice is thrown...
More...


Sure, why not? America was built on risk--- you really have very little to lose by going for it. Don't listen to these misers and nervous nellies.

peace
&
good luck
 
I will be the first to declare this,....

If you are truly smart enough to have a $60K a year financial job and save $9k then you have saved 15% of your income AFTER taxes to trade. Then you say you took out a loan for $11K at 26% interest that means at a $20K trading capital you would need to make at least 14%/year while under capitalized after interest and commissions and with no track record or serious posts on ET. My BS detector is on high!! Why not just save a bit longer for the full amount.
 

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