Transition to trading

[davidc123]

Hi all,

I've reached that point where I'm seriously considering taking the plunge and switching career to full time independent trader. I'm sure there are traders here who have been through this so I'm wondering if anyone can give me some info on what it was like for you?

My situation is that i'm 26, been trading part time for about 3 years, quite consistent now but strongly feel I would get much better results if I was fulltime. Have enough capital to live + trade for at least 18 months, but I figure I'd know if I can do it full time after about 6 months.

So how did you know for sure you were ready? Did you have targets to meet before you quit your job? Did you take the plunge or work out some time off work to see if it works out? What kind of rules did you set yourself for knowing it wasn't working and you need to go back into work? Also how do you handle your family?

Thanks.

 

[Jbat001]

Greeatings davidc123 - you're in the sort of position I want to be in!

I'm 28, wanting to trade my own account, and trying to accumulate enough capital to support myself for a long stretch while running my own account. I know how much money i'll need, and I've got my trading strategy sorted, but I just need more money to make it work.

I'd say take the plunge - If it doesn't work out within six months, you can always pack it in and return to the day job. As long as you're making money and your systems are profitable, go grab the dream - I'll be chasing you!

 

[4xpipcounter]

One key element is that you are well capitalized to begin with. The one thing you do not want when you enter this arena full-time is money pressure on you.
Personally, I knew I was ready as a full-time trader when I did not have to spend time sweating over entries and exits into trades. Nothing changed about my psyche once in the trade. My wife can never tell what kind of a day I had by looking at me, because I never change what you see on the outside. These are all important elements to know if you are ready or not.
The thing to keep in mind is you have already told me you have an excellent methodology and really good margin practices. This is because you are winning consistently. The part of you that needs work on is the mental part. Things will change. This is because trading is about to become your sole dependency.
I'm glad, especially as a young person, you have given it lots of thought, and you took time to plan your venture. This is one thing of preparedness that seems to indicate to me you will succeed.
The only target I had to meet before doing this full-time was the mental part. If my palms were still sweating just because I entered a trade, I was not ready. If I was jumping for joy and swinging off the lanterns just because I closed a trade for +500 pips, I was not ready. If I was bummed because I took out a losing trade, I was not ready. That was the criteria I had to meet before I could quit. I already knew I had an excellent methodology, and margin principles that were founded in granite.
Once this became my only job, going back to another job was not an option or a forethought, because the other things I mentioned were settled. There was no need to second guess myself.
As far as my family is concerned, it is just my wife and I. The kids are all grown. My sife had the confidence in knowing I would make the best decision for me and her.
I wish you the very best. You seem to have a strong sense of self-preparedness. Just make sure you are ready, mentally. Let me also suggest to not take time off from work to trade full-time for one or two weeks. That would not be a fair career-decision barometer.

Hi all,

I've reached that point where I'm seriously considering taking the plunge and switching career to full time independent trader. I'm sure there are traders here who have been through this so I'm wondering if anyone can give me some info on what it was like for you?

My situation is that i'm 26, been trading part time for about 3 years, quite consistent now but strongly feel I would get much better results if I was fulltime. Have enough capital to live + trade for at least 18 months, but I figure I'd know if I can do it full time after about 6 months.

So how did you know for sure you were ready? Did you have targets to meet before you quit your job? Did you take the plunge or work out some time off work to see if it works out? What kind of rules did you set yourself for knowing it wasn't working and you need to go back into work? Also how do you handle your family?

Thanks.

 

[bangkoker]

Nice post

 

[davidc123]

Thanks that's exactly the kind of insight i was looking for, sounds like it was an easy choice for you. I've set myself a monetary target to reach by the new year, but if i'm honest i still have some work to do on the mental side. I handle winners and losers just fine, but i need to work on hesitation and missing opportunities. Now seems like the best time for me because I have no commitments and I'm not that senior at work yet (although it might be difficult to leave a potentially lucrative job, albeit soul-destroying). No need to rush it though so I'll re-assess in the new year to see how much i've progressed.

Thanks again,
David.

One key element is that you are well capitalized to begin with. The one thing you do not want when you enter this arena full-time is money pressure on you.
Personally, I knew I was ready as a full-time trader when I did not have to spend time sweating over entries and exits into trades. Nothing changed about my psyche once in the trade. My wife can never tell what kind of a day I had by looking at me, because I never change what you see on the outside. These are all important elements to know if you are ready or not.
The thing to keep in mind is you have already told me you have an excellent methodology and really good margin practices. This is because you are winning consistently. The part of you that needs work on is the mental part. Things will change. This is because trading is about to become your sole dependency.
I'm glad, especially as a young person, you have given it lots of thought, and you took time to plan your venture. This is one thing of preparedness that seems to indicate to me you will succeed.
The only target I had to meet before doing this full-time was the mental part. If my palms were still sweating just because I entered a trade, I was not ready. If I was jumping for joy and swinging off the lanterns just because I closed a trade for +500 pips, I was not ready. If I was bummed because I took out a losing trade, I was not ready. That was the criteria I had to meet before I could quit. I already knew I had an excellent methodology, and margin principles that were founded in granite.
Once this became my only job, going back to another job was not an option or a forethought, because the other things I mentioned were settled. There was no need to second guess myself.
As far as my family is concerned, it is just my wife and I. The kids are all grown. My sife had the confidence in knowing I would make the best decision for me and her.
I wish you the very best. You seem to have a strong sense of self-preparedness. Just make sure you are ready, mentally. Let me also suggest to not take time off from work to trade full-time for one or two weeks. That would not be a fair career-decision barometer.

 

[4xpipcounter]

The decision to be a trader was not a tough choice. The thing that was tough was being in the trenches, while working for nothing, and developing a methodology.

Thanks that's exactly the kind of insight i was looking for, sounds like it was an easy choice for you. I've set myself a monetary target to reach by the new year, but if i'm honest i still have some work to do on the mental side. I handle winners and losers just fine, but i need to work on hesitation and missing opportunities. Now seems like the best time for me because I have no commitments and I'm not that senior at work yet (although it might be difficult to leave a potentially lucrative job, albeit soul-destroying). No need to rush it though so I'll re-assess in the new year to see how much i've progressed.

Thanks again,
David.

 

[arabianights]

It sounds to me as though you're not good enough yet, frankly. That comes from reading between the lines.

But if you want to try it, then do so. No one here can tell you whether you'll improve enough. And if it does go wrong, who cares? Makes sense to do this *now* while you don't have serious commitments etc...