What lengths have you taken in trading | Forex Factory

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What lengths have you taken in trading

  • #1
  • First Post: Jun 4, 2009 8:17pm Jun 4, 2009 8:17pm
I'm in need of inspiration ...

I am in the biggest rut in my 30+ year life and my dreams of trading for a living is within arms reach, but that reach is only slowly getting closer.

While i am profitable, i am not overly so, yet i am supremely confident in my abilities and the knowledge that if i could dedicate more of my time to analysis of trades that i could be quite successful.

HOWEVER, i have a family, a wife, kid and mortgage to look after and the steady income of a rat-race job is the only security in meeting those needs.

I am on the brink though, of making a rash decision to get more out of life and just quit my day job and dive head first into supporting my family with trading.

What have YOU done in your life to take a chance on something - a risk you may say to better your life ?

How did you go about it, plan for it, and fulfill it ?

As i said - i'm after inspiration and would love some feel good, 'you can do it' stories, however maybe some reality checks might be needed ?

Thanks for listening ...

  • #2
  • Jun 4, 2009 8:29pm Jun 4, 2009 8:29pm
Quoting pipmyride
I'm in need of inspiration ...

I am in the biggest rut in my 30+ year life and my dreams of trading for a living is within arms reach, but that reach is only slowly getting closer.

While i am profitable, i am not overly so, yet i am supremely confident in my abilities and the knowledge that if i could dedicate more of my time to analysis of trades that i could be quite successful.

HOWEVER, i have a family, a wife, kid and mortgage to look after and the steady income of a rat-race job is the only security in meeting those needs.

I am on the...
Killed my Mortgage First Then decided on an exit strategy.
  • #3
  • Jun 4, 2009 8:31pm Jun 4, 2009 8:31pm
If you can't make enough now, you wont make enough quitting your job.

I didnt quit my day job until I was trading 2x my salary. And now I have a job as a corporate trader.

At 2x salary, you can afford to have an off month, and they do happen.
If you have doubts, then that means you shouldnt do it. You will know when the time is right, and its not because you need "more out of life" its because you can do something that will making your whole situation better.
  • #4
  • Jun 5, 2009 1:25am Jun 5, 2009 1:25am
Thx for the responses -

but its not about having doubts - i mean really, trading for a living, where you are your own boss, set your own hours etc is obviously against "normality" so its only natural to have inhibitions ...
  • #5
  • Jun 5, 2009 3:10am Jun 5, 2009 3:10am
Quoting pipmyride
I'm in need of inspiration ...

I am in the biggest rut in my 30+ year life and my dreams of trading for a living is within arms reach, but that reach is only slowly getting closer.

While i am profitable, i am not overly so, yet i am supremely confident in my abilities and the knowledge that if i could dedicate more of my time to analysis of trades that i could be quite successful.

HOWEVER, i have a family, a wife, kid and mortgage to look after and the steady income of a rat-race job is the only security in meeting those needs.

I am on the...
Don't quite your job. Don't be another Forex horror story, losing everything and living out of a car.

Look at someone like Jacko that trades only 1 pair, the EUR/USD. You do your analysis and then wait for the trade, so I'm not sure the 'more time' to be successful is enough of an argument to say, I can quite my job now and have more time to for analysis.

Something to think about.

My vote is you tough it out with the job and provide for the family and build your account up. Like someone said previously, you'll know when you ready and the making 2x your salary sounds very reasonable as well.

But who am I go give advice, I'm not making $*&# at this...
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #6
  • Jun 5, 2009 3:16am Jun 5, 2009 3:16am
Quoting pipmyride

HOWEVER, i have a family, a wife, kid and mortgage to look after and the steady income of a rat-race job is the only security in meeting those needs.
Too much pressure to succeed, failure wouldn't be an option and that's not an ideal psychological state for a trader.

I guess it depends on how dedicated you are and whether you are prepared to sacrifice a couple of years of hard work for a better future, and of course it depends on the support of your family. A lot of people yearn for a better life but very few are prepared to do what it takes to get it.

In my opinion the only way it will work is if you have the security of a paying job to cover important expenditure, but a job which is flexible enough to allow you to trade, off the top of my head perhaps something like a night watchman or night shift at a gas station. It's not glamorous work but then it's just a means to an end, bigger picture etc etc. Your family will also feel secure which is obviously important, they shouldn't have to worry about how the mortgage is going to be paid from what they probably consider is gambling. Maybe your wife could get a part-tme job as well, after all what you're planning to do is going to benefit your family in the long run.

I think the last thing anyone needs at the start is to be totally reliant on their trading income, it can absolutely screw up your psychology even worse than trading 'scared' money.

Can it be done? Yes, without doubt, but it's hard work and sacrifices initially.

Go for it, don't be one of these people who 20 years down the road lament what could have been 'if only'. Even if you fail at least you can have the satisfaction of knowing you tried, all you will have lost is a couple of years of hard work, you can always go back to the 9-5 if it doesn't pan out.

As they say 'Nothing ventured, Nothing gained!'

Good luck!
  • #7
  • Jun 5, 2009 3:39am Jun 5, 2009 3:39am
I took the risky path, and made some adjustments to my lifestyle and basically can survive abt 2 years if no income.

But what I can tell u is that part time trading and full time trading is very different. There are a lot of uncomfortable adjustments to make. Its almost like learning the whole game again.

Other issues will be time management, disciple and stuff like that.

some caveats :
-tendency to over trade
-gambling due to boredom
-lazyness and the other extreme work too long

In term of pulling the trigger, I really dont know, but its what I wanted to do all the while, so the jobs I undertook are stepping stones to my trading career. Whole process took 6+ years.

Think really hard why you want to trade for a living. I always tell my curious friends that having CONSISTENT part time trading income besides a regular job is not really a bad thing. Reality check is that you really have to like it to be able to succeed at it, be honest with yourself.

I wish you success....

regards
mark
  • #8
  • Jun 5, 2009 5:02am Jun 5, 2009 5:02am
Quoting Bemac
Killed my Mortgage First Then decided on an exit strategy.
I'd second that ... Become secure before leaping.
Or at least be extremely confident you can bring home enough bacon from trading, and have a large emergency savings pot.

Depends what your job is and where you live, but you could do worse than look into moving to the freelance contract arena of your profession.
That way :

1) you're better paid
2) still getting income
3) you are in a better position to negotiate/dictate the terms of employment
4) you can take a month or more off between contracts if you're in the position to do so.


aiyahmarklah makes some good sense here too.
I still find it difficult to be patient and disciplined full time, and thats without the distractions of wife and kids around ... (2 grew up and left and 1 just ..well ..left ) (I started young!)

Distractions / boredum / Tiredness / Psyc managment are all serious impediments to even the most dedicated and disciplined full time trader.

I wish you every success.
  • #9
  • Jun 5, 2009 7:02am Jun 5, 2009 7:02am
I agree with Takisd

thanks for shared

_____________________

RSI divergence theory

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  • #10
  • Jun 5, 2009 7:42am Jun 5, 2009 7:42am
I agree, pay of your mortgage and have at least 1 year to live off. Otherwise you will quickly get to the point where each trade is a matter of losing you house or not. Your will end up losing it all. I am contractor so can take months off will have paid of my mort in 2 years and saved enough to live in 5 years, by that time I hope to have become profitable and maybe built an account to trade off.

Also you mention if you could analysis more your would be more profitable? Do you really believe that?
Economists have forecast 9 out of the last 5 recessions
  • #11
  • Jun 5, 2009 9:04am Jun 5, 2009 9:04am
Pipmyride

I very much FEEL your desperation...I too was standing where you are. So here are somethings to consider.

(1) First and foremost...you are NOT alone...you have a wife and children who will be affected by your decision. What do they say about your desires. Supporting and spending time with your family is paramouint to happiness. If your family is behind you that will increase your chances of success...if they do not support this effort you will have a very difficult choice...trading or family...I urge you NOT to put yourself in the place.

(2) Finances. You said yourself, that you are only mildly successful. If that is the case it may take some time to reach your goals...do you have sufficient funds to carry on INDEPENDANT of trading? If so for how long? Can you increase your profitability within that time? If the answer to any of these questions is "No" then wait just a little while longer, to either improve your trading skills, and/or save some more money so you can make the switch.

(3) Mental preparedness. Trading for a living all about being consistently profitable. This can only be done when you KNOW in your heart of heart that you ARE consistently profitable. If you are worried about your next mortgage payment, and your current trade is a loser, you may be inclined to make some rash decisions about that trade...this will NOT make you profitable or consistent. Trading with real money, no matter how small, is different...it just is.

(4) Study. If you feel right now that you lack the needed time to study the markets, then you probably are not yet as consistently profitable as you need to be. Try trading a longer time frame...one you can commit to checking EVERY update. I imagine an intraday chart just won't do it. Try a 4 hr or daily chart and trade that...yes the 'action' is slower, but the pips are much bigger, and it leaves you more time to spend with your family and still work...I'll show you how if you like.

(5) Emotions. Finally, try to look inside yourself and determine WHY you are on the verge of what you described as a "rash" decision. Try to see where it comes from and confront THAT part of your life. This will be your first step into trading for a living as you will feel this same emotion when you trade...BAD...very BAD. Are you feeling rash because you're impatient? That will have a huge implication in your trading. Are you feeling rash because your work is frustrating? Try and talk to your boss or a confidant at work about it. No matther what find out where this feeling is coming from...at its core...and neutralize it.

Get into the habit of examining yourself and where your feelings come from. This, more than anything else, will have the greatest positive effect on your trading. We must all trade with a certain neutrality to the markets, but if our daily lifes leave us with some emotional "residue" we will make bad decisions in our trading and that will affect your consistency, your finanaces, your attitute, and the family life you are so desperately seeking.

Hope this helps.
  • #12
  • Jun 5, 2009 10:15am Jun 5, 2009 10:15am
Guys
Thanks a lot for all the replies.

Gives me much to think about.

The main worry i have straight away is that , wow, doesn't look like many actually trade for a living profitably ?

I will say that i am in an office IT job , which pays well, so its not merely the money, i make enough steady income but its simply that the work no longer inspires me, or motivates me.
Yes - contracting is an option and one i am looking into - however i struggle to see whether i can generate the passion i once had for the work.

Also, when i talk about having more time for analysis, the reason behind me saying this is that i've recently made some silly errors taking trades IN THE OFFICE
Doing so, didnt allow me to properly analyse what i was doing, while thinking, who's watching me and it meant i missed reasons to stay out of the trade.

I really appreciate the feedback and thoughts, i have a lot to mull over - bottom line is i am struggling to motivate myself to perform and answer "to the man" in the rat race, and it is eating at me inside.

Thanks again
  • #13
  • Jun 5, 2009 10:21am Jun 5, 2009 10:21am
Also - the paying off the mortgage one is a real interesting one for me.

I've recently put the house up for sale, as after selling, i would have a very nice amount of capital to sit on for trading and day to day expenses - ofcourse this would mean i would have to move into renting, and move OUT of the property market (which in these times and property prices is a huge risk).

So that really tells you how much i am willing to sacrifice, and risk to do what it takes - the family supports me if it means i would be a happier person - and being my own boss would effect that for certain.
  • #14
  • Jun 5, 2009 10:54am Jun 5, 2009 10:54am
Quoting pipmyride
Also - the paying off the mortgage one is a real interesting one for me.

I've recently put the house up for sale, as after selling, i would have a very nice amount of capital to sit on for trading and day to day expenses - ofcourse this would mean i would have to move into renting, and move OUT of the property market (which in these times and property prices is a huge risk).

So that really tells you how much i am willing to sacrifice, and risk to do what it takes - the family supports me if it means i would be a happier person - and being...
I wish I was trading back in the day, when I was single with no kids, renting a small flat. I would have cut my outgoings to as low as possible as Im not a big spender., and injected everything into my account.
Economists have forecast 9 out of the last 5 recessions
  • #15
  • Jun 5, 2009 11:26am Jun 5, 2009 11:26am
Quoting pipmyride
...but its simply that the work no longer inspires me, or motivates me...
Pipmyride...This to me was a very revealing statement about how you see and relate to your work. As a successful IT person you have found that what was once challenging and inspiring is now tedious and boring...such is life.

That is what trading should be....unfortunately. When you find yourself saying the same things about trading as you are now saying about your current profession, you will be ready to support yourself as a trader. However, NOT before. Here's why...

If you make a mistake in IT, an entire system can go down but as you know there is always a back up that you can use to "fix" the problem...most times. In trading there is NO backup...you cannot "fix" a bad trade.

You sound like you enjoy the challange of studying the markets and "figuring out" how they work...while that may be entertaining, it is not profitable. If you are still seriously considering trading for a living...I would suggest that you find other means of entertainment to challenge your clearly formidable intellect. Keep your trading simple...yes boring...and challenge yourself by inventing a new source of engery or an ingenious new program for a cell phone. Then you can use the profits from trading as your "job" and when you are successful in your new business of programing, you can further diversify into a strong corporation.

Trading MUST be neutral, clear headed, and "boring" for lack of better term. If you overthink each analysis, you will find yourself wondering why others are making profits and you are still trying to "figure out" what the markets are doing.

Seriously...take a breath and look at trading for what it is...another job...a good one...but a job none-the-less...

I caution you against "throwing the baby out with the bath water" based on the clearly romantic idea you have about trading. There are advantages and disadvantages to everything...be sure you are not just looking over the fence and seeing "greener grass"...

You sound like you have a good job with good income, and seem to be highly intelligent...continue as you have been....learning, observing, trading, gaining experience...when you do decide to trade for a living it should be because you are making more money doing that...part time...than you are with your current occupation...full time....understand?
  • #16
  • Jun 5, 2009 11:26am Jun 5, 2009 11:26am
Quoting markmm
I wish I was trading back in the day, when I was single with no kids, renting a small flat. I would have cut my outgoings to as low as possible as Im not a big spender., and injected everything into my account.
exactly. this plan is more appropriate to singles. takes a little away the pressure of having mouths to feed.

if you have a family, most likely on a bad trading day, your family will feel your frustrations.

here's one you can try. if you can take a one- or two-week leave from work and actually "simulate" trading for a living, then you'll have a better feel. hopefully that helps you decide.

lots of good stuff here. good thread.
  • #17
  • Jun 5, 2009 12:00pm Jun 5, 2009 12:00pm
Quoting pipmyride
Also - the paying off the mortgage one is a real interesting one for me.

I've recently put the house up for sale, as after selling, i would have a very nice amount of capital to sit on for trading and day to day expenses - ofcourse this would mean i would have to move into renting, and move OUT of the property market (which in these times and property prices is a huge risk).

So that really tells you how much i am willing to sacrifice, and risk to do what it takes - the family supports me if it means i would be a happier person - and being my own...

Uh-oh

Seeing as no-one else is going to do it let me play devil's advocate for a minute....

You're selling your house (at the bottom of the market), moving into renting, and after paying off the mortgage etc using the balance as trading capital and for day to day expenses.

Out of interest what's your plan if things don't work out in trading and you lose your capital, the probabilities are extremely high.

You do realize that probably less than 2% of retail traders actually make any money in this game, and probably less than 1% who actually produce a decent income?

It's one thing to try and fail, it's another thing altogether to risk everything in the process!
  • #18
  • Jun 5, 2009 12:44pm Jun 5, 2009 12:44pm
I suspect you're just looking for confirmation...you've made up your mind.

Good luck with it, you're going to need it.
  • #19
  • Edited 6:34pm Jun 5, 2009 1:34pm | Edited 6:34pm
Quoting pipmyride
Guys
Thanks a lot for all the replies.

Gives me much to think about.

The main worry i have straight away is that , wow, doesn't look like many actually trade for a living profitably ?

I will say that i am in an office IT job , which pays well, so its not merely the money, i make enough steady income but its simply that the work no longer inspires me, or motivates me.
Yes - contracting is an option and one i am looking into - however i struggle to see whether i can generate the passion i once had for the work.

Also, when i talk about having...
Quote
I will say that i am in an office IT job , which pays well, so its not merely the money, i make enough steady income but its simply that the work no longer inspires me, or motivates me.
Wow. I'm an IT guy and used to love my job. I started trading Forex 9 months ago and now I hate IT. I can totally relate to this. The feeling to quit and trade is overwhelming when you hate your job, I know I'm feeling it.

How about a compromise? Can you take vacation or a leave of absence? Take a month off, if you can, and trade for that month. Just make sure you go back to your job.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #20
  • Jun 5, 2009 2:31pm Jun 5, 2009 2:31pm
Quoting pipmutt
Uh-oh

Seeing as no-one else is going to do it let me play devil's advocate for a minute....

You're selling your house (at the bottom of the market), moving into renting, and after paying off the mortgage etc using the balance as trading capital and for day to day expenses.

Out of interest what's your plan if things don't work out in trading and you lose your capital, the probabilities are extremely high.

You do realize that probably less than 2% of retail traders actually make any money in this game, and probably less than...
I hear this figure bandied about all the time but I think its a generalisation.
Economists have forecast 9 out of the last 5 recessions
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