I don't understand why, if you are as financially secure as you state, that you would be forced to borrow 11k at loan shark rates? Would you not qualify for an unsecured credit line at a substantially lower interest rate? Seems like a recipe for disaster having to make 26% net just to break even.
Took out a loan to transition to full-time trading. 24 years old.
- Thread starter wabu27
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Again Bullshit... Now you claim to be trading at work and your monthly statements get sent to compliance dept.... That implies you have been trading live for several months and in your 1st post you said you have been virtual trading. This wreaks of bullshit. If you really did plan to do such stupidity why even say "I need opinions". Clearly, you don't and clearly you are full of it. This is a worthless thread.
Looks like you don't quite understand what "transfers" means: those credit-card offers relate only to transferring existing debt from other credit-cards, not to new cash advances.
Their availability is also very dependent on credit-ratings.
The word "breathtaking" comes to mind, to describe the plan of someone who has $9k and is planning to borrow $11k at a huge interest-rate (giving him a total of $20k, otherwise known as "seriously undercapitalised" for that objective) to give up his job and trade for a living on the basis that the only time he's ever previously traded with real money, he lost money.
Let nobody tell you that it's impossible or that it's never been done successfully. IMO you perhaps have a 1% chance.
Trade something in the evenings or morning after/before work before you give up your job. If you must trade equities in work hours then swing trade. After spending a few years being socially isolated at home you will really know yourself and be desperate to see people. Factor in the cost of a desk in a coworking space. If there are no coworking spaces near you then set one up it is a great real estate business.
http://uk.virginmoney.com/virgin/credit-cards/
They have transfer balance and transfer money to your bank account at 0%. See link. It is the recommended way in the UK to buy a cheap car.
24 years old and 60K a year income. He only needs to earn 400% returns per year to replace the salary and interest on the loan.... (year after year)
Normally I would say don't do it, but seriously some people will only learn after they fall flat on their face... why talk him out of it... perhaps he can turn want into results... People do win the lottery after all, anything is possible...
Normally I would say don't do it, but seriously some people will only learn after they fall flat on their face... why talk him out of it... perhaps he can turn want into results... People do win the lottery after all, anything is possible...
Well, the money came into my bank account and it's been transferred to my stock account.
For clarity: I'm "thinking" of quitting my job... not quitting just yet. Going to trade from work and see if I can manage to get it to $30,000. If I can consistently, safely make returns each day I'm "highly, very highly likely" going to quit my job.
Yes, I make 60k but that is including bonus. Why take this unnecessary risk? Well, I think I'm good enough to make more than 60k a year. Greedy? Ambitious? You can decide, but I believe how you spend your 20's has a big effect on how you live your 30's and 40's, and I want better. I just didn't see myself living the lifestyle I wanted by starting with 60k and moving up the corporate ladder a step at a time.
Most people are criticizing, which is not surprising. Yet thank you for the rare few who is encouraging. Whether you think I'm a moron (I agree to a certain extent..) or not, my stock account now has ~$20,000 so please wish me luck. I really do need it.
For clarity: I'm "thinking" of quitting my job... not quitting just yet. Going to trade from work and see if I can manage to get it to $30,000. If I can consistently, safely make returns each day I'm "highly, very highly likely" going to quit my job.
Yes, I make 60k but that is including bonus. Why take this unnecessary risk? Well, I think I'm good enough to make more than 60k a year. Greedy? Ambitious? You can decide, but I believe how you spend your 20's has a big effect on how you live your 30's and 40's, and I want better. I just didn't see myself living the lifestyle I wanted by starting with 60k and moving up the corporate ladder a step at a time.
Most people are criticizing, which is not surprising. Yet thank you for the rare few who is encouraging. Whether you think I'm a moron (I agree to a certain extent..) or not, my stock account now has ~$20,000 so please wish me luck. I really do need it.
Serious question. If you lose all 20k do you plan to repay the loan?
of course. In the US if your credit sucks, life is going to be very difficult for you.
Ok...like you said..stupid on the loan and stupid for the reason why you got the loan considering you work for a finance firm.
The life error will be to quit your job. That's unacceptable considering all traders need a backup plan and that job of yours is an excellent backup plan.
Simply, keep the job. You can easily trade full-time on your vacations, take sick days off to trade full time, take a leave of absence to trade full time, change work hours to trade full time or even transfer to another office or branch in a different time zone so that you can trade full time or have better trading hours.
Whatever you do, do not quit that job because of all the other expenses you WILL have that you didn't mention or didn't feel like discussing (e.g. health/dental insurance, living expenses and many other expenses) to get you by for a few years. Simply, your PDT excuse is a poor excuse considering you had other options available.
Best trader I know has a full-time job working as a high school teacher (math). He keeps his job only because of the health/dental benefits, education freebie benefits for his kids and the fact that shit happens even though everybody was healthy in his family up to about 2 years ago when one of his kids was diagnosed with cancer.
Now imagine what would have happen to his finances had he quit his job to "only" trade ? Even with all those profits he consistently makes...cancer ain't cheap nor is the at home care that his spouse has to do for their child...resulting in her forced to quit her job that had very little benefits to do such.
Once again, keep your job because shit happens (it will) and you want to have a backup plan when it does happen.
P.S. Do you ever wonder why some lottery winners do not quit their jobs after winning millions ?
Guess what, shit has already happen prior to those winnings and they don't want that lottery winnings to dry up paying for the crap out of their own pockets. Simply, they want their jobs to pay for those health expenses and others want to ensure they get their pension that they are near to earn.
There's also those that keep their jobs because the job is like family to them and its a job they truly enjoy doing.
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