As the subject says “When did you quit your full time job to trade ?”
To set the context, I am in a Big 4 firm with really good pay and have worked very hard to reach here since last 10+ years and I am decent at what I do.
But Trading is something I am extremely passionate about. Its not because I lust for the money it can bring, I am very realistic in terms of returns (Learned this the hard way) but because it gives a chance to analyze a problem and gives a feedback which is very similar to what I do.
I am not making profit as equal to my salary (maybe Half of it).
I have EMI’s too. Its a decent amount (This is what scares me the most)
I get extremely tired, it feels like I am working 2 full time jobs.
I know smart decision would be to stick to the job, pay off EMIs and then try but what is the point of passion if you are not ready to risk it all…
Can someone here put some sense in me please…
Smart decision is to work in uk shift or WFH . Automate , what ever you can or use alerts. Move to higher time frame or swing trades etc. As you said you are good at problems solving well this it self a problem statement.
Trading is lonely business, job give you company/friends and balance.
May try to take 6 months ,1 year sabatical and see how you do if required.
Stable money flow also build your capital which is fuel for your trading as well.
Also, trading is highly dynamic unless you feel a steady income somewhere as one regulatory change may change your whole business
Learning to trade is very difficult and takes a long time. It seems you are already profitable, how long have you been profitable? Have you seen multiple ups and downs ?
If you already have learnt trading and have experience, then i think you should already know the pros and cons of trading and you yourself should be best judge of how to move forward
But anyway i will write down some cons even if you might already know -
Trading income is not salary. We can be in drawdowns for many many months. And a single system can easily have an abnormal dd that lasts for more than a year. Some of this can be mitigated through multiple systems but even then time drawdown is a given. Andrea Unger has many many systems (100+ maybe) and yet has to face dd.
Trading income is variable.
Uncertainty is integral to trading. Systems can stop working permanently, markets can change. And on top of that time and price Drawdowns are normal. So it can be a while before one can say that system is not working anymore and even that is not certain.
Trading needs capital. Not worth it without it. I would say 50L is bare minimum for full time trader but 1/2cr would be much more comfortable. More capital allows you to make do with lower returns and gives time to adapt in adverse situations.
Markets don’t care for passion. We can remain passionate for years and not make any headway. We need an edge - something that makes adequate money over large sample with acceptable risk and then we need to apply that edge consistently without emotions getting in the way through ups and downs. Automation can really help here. Ofc, passion is good too as it can keep you working through failures.
Markets don’t give good feedback in short term. Wrong things can pay and right things can punish.
i don’t understand your EMI situation. Are you in debt ? Do you have spare capital too ? Is debt more than savings ? Then this is a big no imo. Too much uncertainty in trading to also be in debt. Build up savings first.
That said, i had left my job without any future plan. I had savings, no plan but also no dependents. Trading was not even in picture. It took more than half a decade to finally turn the corner. So, i am not going to say that you should not do it, but just be aware of above. But if you have dependents and no savings, then this is a big big no.
One way out can be to trade less often, say once a week on weekly timeframe and develop an edge there. It should take less effort and you can focus on career and building up savings.
If you have worked quite hard to earn this job - it should still be your passion.
Usually salaried people buy things on EMIs assuming they will continue in their job till retirement. Car, house, upgraded lifestyle etc can be purchased via EMIs.
Not a good idea to quit a high paying job because you are tired. A better option is to find a better job with the skill sets you have.
Ok. If the above comments did not discourage you, then…
Trading brings in lot of freedom, transparent feedback of performance & a continuous learning mindset. Its a business - so the returns may not be proportional to the effort, but to the level of competency.
Since you are above 30+ you should have sizeable investments in mutual funds, stocks etc which you may have acquired during the job. A good starting point is to calculate the yield of your investments to see how much it will return even if you dont make anything via trading. This is true wealth and a good supporting net.
If you have already perfected a trading setup, even though the money is small - you can still go full time, provided you are zero debt. Personally, I would wait to settle all my EMIs, loans etc to start trading.
Thank you guys.
I have an average savings/trading capital (Average from my POV). Its my 1 year salary package and have some debt (probably 30% of that amount).
I have lived my whole life in ultra luxury (always staying at 5 stars, international trips etc.) feeling that I am earning money from two sources, I should enjoy as much as possible.
My trading style does not need me glued to screen, Its about the mind. Big part of the mind is always on market during office hours which itself is very stressed out. Plus, there is always a chance of travelling to meet clients where it gets difficult to even check the positions for 2-3 days (during market hours).
Hmmm…Thanks man, I think this makes a lot of sense.
Trading income cannot be salary otherwise what is the point. If I have to keep withdrawing every month and if I have to downgrade my lifestyle, then again what is the point…
I quit when I was able to generate comfortable passive income to maintain my lifestyle, became a property owner and did not have any financial liabilities like EMIs. Mind you I like living a simple life -
What full-time trading will give you
- Time, time, time!!! Lord and Master of your time,
- Freedom to fulfill your familial obligations and health.
- Hobbies, travelling too…
- If you are good at it, you should be able to eventually outdo most well-paying managerial jobs in the Big 4.
IMO you should get into full-time trading only if you are annually able to make atleast as much as your yearly salary and/or if you are able to generate a certain comfortable income via bonds/FDs etc - especially since you have EMIs to fulfill.
I assume you are into derivatives.
Yes, I am.
You are right. I think I was just looking for a easy way out or am just thinking too much.
My mindset has also changed a lot since some times, I am enjoying a simple lifestyle now though I absolutely love to travel but I dont do well in both trading and job while travelling. I have tried 7-8 months of travelling + working which went pathetic.
It sounds exciting that you can travel the world and trade/WFH but its very hard.