Turning full-time...

S

shabushabu

This is a similar thread to another member who has posted here and I'm just seeking some opinions on my plans and my concerns going forward with this...

Plan
- Quit my 60K CDN / year software engineering role in a month + benefits
- Start daytrading stocks full-time with about $60K US in cash and leveraging it through margin

Experience
- I've day traded in the mornings before work for only 2 months with about 80% ROI on my real cash. Of my $60K US, half of it was made in just over 2 months through daytrading with my customized strategy that I have been adjusting as I learn more from real trading
- I've traded with a long-term mindset on and off for about 5 years. I used more of a value investing strategy, but I found this brought me minimal gains and I usually didn't have a good exit strategy since there's so many variables when holding for such longer periods of time
- I've found some of my big losses occurred while I was sitting in meetings at work not able to monitor my trades from my trading platform @ home (web-based charts are horrible)
- Was trading only LONG for the first while, but have slowly been trying out shorting
- Tried trading options, but will probably stay away from them for a bit. I need to research this more
- I keep a spreadsheet of all my trades to put metrics on my results. I've learned this last month as I've increased my number of trades, I'm not IMPATIENT enough when taking profits as my overall ROI per trade has dropped significantly since January.

Risks
- I pay no rent since I still live at home
- Expense are about $1K / month with car insurance/gas/entertainment

Support
- I have support for this from my family; however, they also have similar concerns. They just want to see me happy and my current job meets some requirements, but also requires me to work at the company for another gazillion years

Concerns
I've thought about these things for awhile, but want to seek out fresh opinions. That's why I'm not providing my reasons that overcome these obstacles:

- Trading is not very social. When I trade already, it can get a bit boring sitting there infront of my multi-monitor setup. What will happen after a couple months?
- Lose the health benefits and security from my job

Worse-case scenario
- If I cannot continue doing well day trading over the next few months, I'll go find my stable 9-5 job again. I'm not worried at all because my field in software engineering seems to be quite abundant in jobs these days
 
Quote from shabushabu:

- Trading is not very social. When I trade already, it can get a bit boring sitting there infront of my multi-monitor setup. What will happen after a couple months?
- Lose the health benefits and security from my job
More...

Looks like you are asking for some action....like an addict or gambler....

Don't quit your job
 
I love the nice, neat way you've set up your missive shabushabu.

It shows that you are really trying to give this some thought, are serious about your effort and honestly seek to be successful at trading.

OK, so I'll work with you and try to recommend what I think my really be in your best interests.
***
Nobody here wants to see you quit your day job, because we all know trading, while it appears to be easy when looking over a historical trend, is actually the most absolutely difficult thing a man (or woman) can do when looking at the hard right edge.

There are many many markets that are open at all times of the day and night, and believe it or not, their price action is fundamentally the same, across the board (some might disagree with that statement, and that is OK, I've watched them 24/7 and I know this to be true).

Why not try your hand at the currencies (which are open at 2:00am ET) or the Notes (8:30am ET) or the Euro Indexes (similar to currencies, but you would have to confirm that) or the asian indice (late evenings to early morning ... this also requires confirmation on your part).
***
You see where I'm going here?

Nobody wants to see you get married to a situation when you haven't even really sampled what's out there.

Good Luck

P.S. My own story? I quit my day job and got an evening job to trade the US indice, so I didn't really give anything up, but if I could do it all over again I probably would have been better off keeping the day job, they loved my skill-set. :D
 
Quote from shabushabu:

This is a similar thread to another member who has posted here and I'm just seeking some opinions on my plans and my concerns going forward with this...

Plan
- Quit my 60K CDN / year software engineering role in a month + benefits
- Start daytrading stocks full-time with about $60K US in cash and leveraging it through margin

Experience
- I've day traded in the mornings before work for only 2 months with about 80% ROI on my real cash. Of my $60K US, half of it was made in just over 2 months through daytrading with my customized strategy that I have been adjusting as I learn more from real trading
- I've traded with a long-term mindset on and off for about 5 years. I used more of a value investing strategy, but I found this brought me minimal gains and I usually didn't have a good exit strategy since there's so many variables when holding for such longer periods of time
- I've found some of my big losses occurred while I was sitting in meetings at work not able to monitor my trades from my trading platform @ home (web-based charts are horrible)
- Was trading only LONG for the first while, but have slowly been trying out shorting
- Tried trading options, but will probably stay away from them for a bit. I need to research this more
- I keep a spreadsheet of all my trades to put metrics on my results. I've learned this last month as I've increased my number of trades, I'm not IMPATIENT enough when taking profits as my overall ROI per trade has dropped significantly since January.

Risks
- I pay no rent since I still live at home
- Expense are about $1K / month with car insurance/gas/entertainment

Support
- I have support for this from my family; however, they also have similar concerns. They just want to see me happy and my current job meets some requirements, but also requires me to work at the company for another gazillion years

Concerns
I've thought about these things for awhile, but want to seek out fresh opinions. That's why I'm not providing my reasons that overcome these obstacles:

- Trading is not very social. When I trade already, it can get a bit boring sitting there infront of my multi-monitor setup. What will happen after a couple months?
- Lose the health benefits and security from my job

Worse-case scenario
- If I cannot continue doing well day trading over the next few months, I'll go find my stable 9-5 job again. I'm not worried at all because my field in software engineering seems to be quite abundant in jobs these days
More...

Believe it or not, $50K is not alot to start with. Understand that your capital has to 1) provide for your living and 2) provide for growth. Given that, you've got to double your money over the course of a year just to essentially equal what you earn from your job.

If I were you I'd do one of two things:

1) Stay where you are. Save more money since you earn $5K and expenses are $1K. Continue to trade. The combination of trading and saving ought to get you over $100K quickly enough. That's a better amount to start with in my opinion, plus it gives you some additional experience. 2 months is not a great deal.

2) Quit your day job, but get a night job like Mandel did. This means you can continue to support yourself without dipping into your investment money. Then you can devote the daytime to trading stocks full time without the pressure of having to have the stocks themselves make you any money.

More cash, and more experience is best in my opinion.

OldTrader
 
Sounds like you are young, have a dream, and can fall back on your current career. I agree with other posters that you are not ready but you have to start somewhere. Assuming you are young, can afford to lose your 60k, and can easily find employment if you fail, go for it.

If trading doesn't work out go get an MBA or MS and go back into software engineering. An Masters will do wonders for your career. No reason you can't make 100k+ doing what you currently do. Trading is a brutal and frustrating way to make a living but well worth it if you can do it consistently.
 
there are many many roads, but only one leads to salvation

Jesus said.......... eheeheheh :D just kidding

what I am really saying is, you must quit your job and devote to trading

YET, you are not ready and will lose your money

YET if you don't quit your job and devote to trading, you will Never learn

hey young guy, guess what

all traders worth their salt, had to sacrifice something and risk something

you are risking your future, but sometimes that is a good thing

life is a bitch ain't it


PS: I was going to send you some good stuff on PM or email, but you turned off the option, screw you arrogant noob
 
> Quit my 60K CDN / year software engineering role in a month + benefits

Do it. 60k is peanuts for software engineering, you can find another job easily that will probably pay better.

> Start daytrading stocks full-time with about $60K US in cash and leveraging it through margin

Don't leverage for at least 6 months. With 60k you should be able to make at least $500 to 1,000 per week. to start.

> Was trading only LONG for the first while, but have slowly been trying out shorting

Try shorting using ultra ETF's instead of stocks, less risky. SDS is a really good choice (2 x S&P). I go long on individual stocks and short using ETF's. Remember, the PPT is out there.

> Tried trading options, but will probably stay away from them for a bit. I need to research this more

Stay away from options for now.

> Trading is not very social. When I trade already, it can get a bit boring sitting there infront of my multi-monitor setup. What will happen after a couple months?

What are you looking for a social club or a career? I do best when I follow my own instincts, not when I listen to others opinions. Go out after the trading session, get away from your desk if you need interaction.

- Lose the health benefits and security from my job

60k is peanuts, not security, it's just a job. You can get another just like it easily. If you were earning 100k + it would be a different story.

Health benifits, you gotta be kidding me. You are in Canada, you have Medicare. The only thing your insurance is covering over medicare is a semi private room, prescription drungs and maybe dental (with a low limit)

You have no wife, no kids, no mortgage and no rent. NOW is the time if you want to change careers. Go slowly, learn, read about money management, risk/reward. etc...

Good Luck.
 
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