Aim is to break even ....

Hi

I am a frustrated Risk Professional and am thinking of leaving my well paid job to start full time trading. I have not traded before but am very keen to join one of the trading arcades. First, I want to learn how to trade, and happy to pay up to 5K, and then I want to trade .... and most importantly make as much as I am making in my current job. I have a thorough knowledge of financial derivatives.

Is there anyone like me around?

There are plenty of people willing to take your 5k. You will still not be in a position to profit. Learn how to trade with these links: Main Page - Traderpedia and T2W Day Trading & Forex Community

Expect to not make profit until 2010. Give it another 5 years until you are making an income equivalent to what you're on now. No guarantees, mind...

HI mart1ngale

My advice - Do it slowly, step by step. Trading is a very specific discipline. You just have to learn. And learning process will take time. If you rush into it I guarantee you - you will loose your money. Time after time. The thing is you just can't skip anything. If you do, you will pay for it in the future. That the way it is.

Try to check the link below. It is thread started by Trader_Dante. In my opinion it is a must-read for every newbie.
http://www.trade2win.com/boards/first-steps/26947-making-money-trading.html

And don't hesitate to ask questions. I'm sure that there is someone that will help you.

And yes - there is plenty like you on this forum.

Welcome and Good Luck.

Just a quick question or two...
Why do you think of trading as being better than the job you have now?
What is it about trading that attracts you?
Also why are you frustrated where you are?

You want to join the trading game, and bring your Risk Professional skills to the test

tip: keep your costs low

Point is:

If you are really serious about trading (ie be sure that you know your stuff, and you can iterpreat the markets, and spot the arbitrage), then you can not have a day job which prevents you in preparation!

How can I seriously learn if all I am doing is looking at someone else's position and helping them reduce their risk?

Frustration with the job is the fact that I really want to trade and be part of a revenue generating team instead of telling someone else on how to do it!

So the gample I am willing take is to take a break from what I am currently doing; learn to trade properly (which is more than a full time job) and then start making real money!

I think with proper training I can trade STIR futures; TEDs and some index futures. And that skill is great to have it under your belt. With the markets being volatile, its best to learn it now.

Also, I believe, anyone who has displined approach, they can get better at any skill (in my example, its trading!). I can then stop moaning and get on with taking correct risks and make or loose money but it will be my decision!

What I dont want to do is get to 2011 in the same job and think I wish I had taken the risk couple of years ago!

Have I gone nuts?

Also, lets carry out the worst case scanario!

WORST CASE: I get on to one of these programs which chage you 5K. In 6 months, I realise that I am suck at it (but I find it very hard to believe). I back my bags realise a net loss of 6 months salary and go back to doing what I am currently doing!

BEST CASE: I have a flying start and I love it and I do this full time, have my own life, my own working hours, FREEDOM from daily job!!!

AVERAGE CASE: I learn but its not enough to break even! but as long as it pays the bills, I am happy!

A lot of my friends have taken year off to do charity work! or to start their own business. I am doing something similar! arent I?

I have saved enough to last me only six months! My risks are: I will have to rely on NHS for medical care AND I might not be able to find same job as I have now!

Is there anyone outthere like me?

shadowninja said:

There are plenty of people willing to take your 5k. You will still not be in a position to profit. Learn how to trade with these links: Main Page - Traderpedia and T2W Day Trading & Forex Community

Expect to not make profit until 2010. Give it another 5 years until you are making an income equivalent to what you're on now. No guarantees, mind...

Click to expand...

Would you be able to name a few (who is willing to take my 5K)?

Also, can I quizz you further on your remarks "Give it another 5 years until you are making an income equivalent to what you're on now"? Not everyone will be like me! (Yes I am hoping to be in the top 5% who make money in their first year instead of loosing!)

what are you wanting to trade? just futures?

You're already in the industry? Why not speak to your contacts?

mart1ngale said:

Would you be able to name a few (who is willing to take my 5K)?

Also, can I quizz you further on your remarks "Give it another 5 years until you are making an income equivalent to what you're on now"? Not everyone will be like me! (Yes I am hoping to be in the top 5% who make money in their first year instead of loosing!)

Click to expand...

Yes, everyone is different and thinks they can do it in the first year...

Anyway, the only thing those courses will teach you is how to do tech analysis - it's all on the web free of charge if you spend 5 minutes on google. Or if you don't have any time to spare, click the links I gave you earlier. I've seen some of the courses (recorded to DVD and then sold); certainly, if you are a bit thick and can't read then they can teach you all you need to know about TA. If you're talking about STIRS and such, the sort of people who will take your £5k think "stirs" is what cooks do to sauce.

Save your money and stick it in your trading account. That's where you'll learn about trading, and more importantly, about yourself.

So you want to day trade then?
You may find that you can learn ALOT about trading swing trading at first. You would most likely be able to keep your job for now and get the first six months of learning under your belt with much less risk. i.e. keeping your current job!
I know swing trading can be boring compared to day trading but lets be honest...if you can't be patient enough to make your self do it then trading might not be for you.
Any who, just some thing to think about.

hwsteele said:

So you want to day trade then?
You may find that you can learn ALOT about trading swing trading at first. You would most likely be able to keep your job for now and get the first six months of learning under your belt with much less risk. i.e. keeping your current job!
I know swing trading can be boring compared to day trading but lets be honest...if you can't be patient enough to make your self do it then trading might not be for you.
Any who, just some thing to think about.

Click to expand...

That's probably good advice. Swing trading is a good introduction to day trading. Many techniques are similar if you believe that the markets are fractal and techniques are transferable accross all time frames. Its also probably easier to be profitable with swing trading as the transaction costs should be less and the channels are wider.

The best part is that it should enable you to know whether you can make a go of day trading. If you can't make money swing trading then you won't day trading.

Of course the big disclaimer is don't try swing trading at the moment. No matter what stops you have you will likely get stopped out. It's a day trading market only out there so be careful and use good money management....

gooseman said:

what are you wanting to trade? just futures?

Click to expand...

futures/bonds/stir futures.

not too sure about CCY right now but anything which is liquid. but to start off with i want to get into STIR trading.

don't know what you risk monitor at the moment but i would have thought options perhaps better suited to a risk pro?

mart1ngale said:

futures/bonds/stir futures.

not too sure about CCY right now but anything which is liquid. but to start off with i want to get into STIR trading.

Click to expand...

Trading STIR futures, stephen Aikin

Th EuroDollar Futures and Options Handbook, Burghardt

1st is good for an intro, 2nd is good for the nitty gritty (esp. if you want to trade TED's or STIR Options...). Been trying to add FI trading to my skillset (traded mostly FX)... had to put it on the back burner for a bit, liquidity is a real problem in STIRS at the mo.

mart1ngale said:

Hi

I am a frustrated Risk Professional and am thinking of leaving my well paid job to start full time trading. I have not traded before but am very keen to join one of the trading arcades. First, I want to learn how to trade, and happy to pay up to 5K, and then I want to trade .... and most importantly make as much as I am making in my current job. I have a thorough knowledge of financial derivatives.

Is there anyone like me around?

Click to expand...

Good post on breaking even:

Day Trading Blog: Break Even

It seems as though you are treading in the footsteps I left a while ago now... I used to run a book of options and futures, mainly short gamma stuff - which would be a killer in these markets! I now trade for a living, but I found the transition extremely hard. It took a great deal of time, effort, education and money. I can recommend some very good books out there: The Disciplined Trader by Mark Douglas, The Elliott Wave Principle by Frost and Prechter, and some others if you're interested. Be very careful: everybody wants to take your money, but you already know that. Feel free to send me a message if you'd like to discuss more, I've been there!
On a market note, remember that the fundamentals are always reflected in the price. The price leads, always. And the price is influenced by the emotions of traders and investors reacting to the fundamentals. Hence why Elliott is the most accurate forecasting tool yet devised. Not my opinion, fact.
All the v best.