I finally quit my day job!

Hi,

I am just wondering if any of you out there actually did quit their day job to live off trading. What did you guys go through, what made you take the step? How did you deal with each new aspect of it? What where the biggest hurdles you went thru? What would you recommend doing and not doing? Are you happy with your decision? Did any of you go back to work after?

I am curios because I am actually contemplating doing this in the near future. I have been profitable for well over two years now. I trade in the day (6 to 8 hrs) and work at night, it is starting to have its toll on me. So, I am trying to find out what is really awaiting me if I actually do take the plunge. I know about the psychological aspects of a decision like this and having a safety net of funds and so on, but maybe there is still more to it.

Any input/advice and/or real life stories from people who actually did it or are in the process of doing it would be highly appreciated.

Best wishes,

Ramy3

Hi, in 2008 i quit my job and began to trade FX full-time. In hind-sight i was under-capitalised, discipline went awol with the pressure (it was never an issue before going FT) and my health and relationships all suffered because of it.

I went into the venture with confidence in my +ve expectancy strategy from 3 years of live trading albeit part-time and the belief and attitude that I could do it.

4 yrs later, i have learnt far more about trading and about myself than prior to going FT and will only consider going FT again if the pay-checks stop from my employment!....be very careful what you wish for, the grass isn't always greener. Good luck whatever you decide.

Certainly can relate to it, just this day that I had encountered some short comings by which I really had handled best that involves my job.

It's very dependable on what you are searching for. It's a very tough choice as well. You don't get to see a pay cheque or credit balance into your bank account every month, no bonus etc etc.

I was holding a full time job just few months back, there are plenty of room for career progression, promotion, increase pay, and best is that i have up to 32 vacation leave per year. My bosses like me, and wants to move me around different department and promise me the future that's upon me.

However, weighing on EBSI.

Employee
Business owner
Self-employed
Investor

The richer ones are mainly business owner and investor.

Employee- u work for life like a dog to be honest.
Self-employed - you work you manage, you don't work u don't get money too, also depend on which category.
Business owner - very interesting, but need huge capital if you are going to franchise etc and set up a business which can fail as well.
Investor - Can start with small capital, but need wide skills and knowledge.

Investor is the most richest amongst the four.

Looking at the job side, i realize no matter how much you work hard for, one is still just a slave paid a monthly salary with a fixed bonus everyone is getting. Not really appealing to me, as i am young.

I gone through live trading, up and down, made money, breakeven and lose them to the market, restart over and over again during my time while i was working full time.

In the end, it come down to 4 main components

Psychology, Personality, Experience and emotions [PPEE]. Only by managing this 4 important factors, then only the trader can be complete and know what's he is looking for.

I went through my histories and results, and find out what' hindering my consistency and stability. It came down back to PPEE, i went on to look for high probability set up and how trade execution on price entry and exit can be re-fined. And it come down to only 1 simple factor ; money and risk management supersede everything else.

Price action and understanding of charts and candlestick is just 1 portion, only by having proper money and risk management a trader can survive in all market condition.

Since i quit, i am rolling on compounding as i can focus full time. During my work in the past, i am not focusing on both, my mind is on the work while another is on the phone - andriod meta trader. It's very distracting, i don't get to see proper charts, i don't get to follow live news and so on. I make alot of mistakes while trading and working. I am lucky enough that since my trading career i have lost almost close to none to the market.

I build up all account and only to lose all profits in the end, then i start all over again, i have completed such trips almost up to 4-5 times.

Now, i am in the process of writing my own e book hoping to help new traders. I may not be the best, but i want to share my experience and to help trader avoid some mistakes that can be avoided and proper learning and education on Forex.

Full time trader can be quite fulfilling, no one ask you to stay at your computer 24/7. I spend most of my time catching up with my friends, playing online game and etc. And only spend some hours during period where i know high probability can be executed.

I am not bragging, my account may not be big, but it's paying better than my full time job now. My account is on a consistent 2% growth daily sometimes more and sometimes less by abit. I banked about 80-150 pips daily. And i get to close most of my trades before london closing unless those bigger range trades.

And i learn 1 simple thing, don't ever trust fundamental or news because by the time they arrived they are late, in fact i don't read news, i only look at market dept and price action, along with stoch that's all.

The biggest hurdle is that sometimes market is slow or flat, and you may not have a set up. If you don't then don't enter, its better not to risk than to risk, only high probabilities trades work best. Another would be holding trades in negative, knowing how to deal with it and trusting your own analysis and always remember not to be influenced by the market as soon as you feel fear and panic, the more chances you will make mistakes.

Now i trade almost without emotions because all these money are disposable, and i am trading with profits.

A healthy trading ethics is essential, proper sleep, eating, exercise, staying happy, good relationship with loved ones and friends. And i also keep on attending seminars and workshop to learn more as well. And staying neutral at all market times.

anyway, last thing is that you should have a saving that can last you at least 6month - 1 year. if you are the sole bread winner, than think twice.

I just quit from my FT job because of the same factors as stated by many members. Its tough decission however, freedom of time, self sufficiency and a little bit of luck, hope to never join a job again untill its really really a big jump. Anyways good luck and welcome onboard

i quit my job to trade fulltime, after nearly a year trading at home i got sick of it, it was so plain boring, i felt and became more and more like a retiree, i found out i didn't want to trade fulltime, i just had the wrong job at that time, so i thought about what i really wanted to do and i got myself what i wanted, i still trade though, but i like solving problems, the acknowledgement that comes with it, being part of a team ... producing something of value.

but that's me, everyone has to find out for himself what's best for him

Hello ramy3,

I'm in the same situation. Probably the difference is I'm older than you (53) and I quit a lot of jobs in my professional life, stayed unemployed for 3 months and went though all the depression about "having-no-place-to-go-when-you-wake-up-and-nobody-is-waiting-you-to-help-to-solve-problems".
I suggest you to read the book "The Disciplened Trader" by Mark Douglas.
Just remember that the person that is thinking to jump into the trading life most likely doesn't fit in the day-to-day trading life. Be careful.
Today is the professional trained to do a particular work who is ALSO enjoying making some money from trading. They are 2 completely different animals, living in distinct environment with completely different perception of risks.
Just think how are you going to deal with the loss of the "professional you". Once you jump into the trading life, he is gone. What are you going to do with him? Living him lost in space? Simply disconnected? Bye-Bye? Good to see you? It's desilusional. He's like the Terminator. He will be back, and worst, trying to destroy the Trader inside of you in order to avoid you to become a Trader in the future again.
If you decide it today to trade for a living, just think that to change your life you need at least 5 years (I mean, a "planned change". When the life happens and change yours suddenly, you have to accept it and move on).
Make a detailed plan and execute it. Money in the bank is not enough. Life is not only about money.
Good luck and God bless you.

It's a big step.

I usually suggest people ease into it. Instead of just quitting, cut your hours down at work if possible first.

The big hurdle would be the switch to depending on variable income. You absolutely can't live paycheck-to-paycheck when trading for a living, as you'll have bad months and months where you might not be able to take much out of your account. It's just the nature of the business. It's best if you're in a position where you won't have to take a draw on your account for many months at a time.

The worst thing you can do is add pressure to trade and preform in a short term period of time because you got bills to pay.. it will cause bad trading decisions (over trading, taking bad signals, etc..)

Ideally, you should be able to have a bad month or two without it being a big deal. If a bad month means you don't eat... that's not going to work.

That aside, remember to keep busy with non-trading things in your life. Balance becomes really important when your only income is from trading.. taking up a new hobby (or do something you enjoy outside of your trading terminal) to help fill in the time you'd otherwise be at work is important. Keeping life in "balance" goes a long way to keeping your head in check when it counts most.

There's a lot more to be said on this subject... but I hope this helps for starters.

Hi,

I really appreciate you all having taken the time out to share your stories and feedback. It is a very big step, so that is why i am asking around a bit. Nice to hear that some of you are making it and some of you have found their new calling and have learned a lot from their experience.

I guess the outcome of something like this will all come down to how each individual deals with it.

When I do decide to take the plunge I will post and share my experiences here.

Feel free to post your stories if you are in the process of doing this or have actually done it. I will be looking forward to reading your posts and real life stories/experiences. Which may really help me and others (a lot) who are struggling with this decision.


All the best,

Ramy3

I eventually plan to stop working at my job and trade semi full time.

The problem with going full-time is the variable income that Jack was talking about. With all the "interesting" and random events life has to offer, a larger or steadier income is definately neccesary. Trust me when i say "Mo money Mo problems" isn't just a catchy phrase, it's real.

My plan is to generate $ through trading and use this money to turn into semi passive income (rental properties, non material participation in a business or 2, low interest loans, etc). I also planned on using the money (and eventually the free time) to develope a skill that i will enjoy doing and make some profits from. As it turns out, i rather enjoy trading. All of this goes in line with a larger life goal that probably won't happen in my lifetime, but i'm starting it up.

I think as a trader it's easy to get caught up in the hype of making big bucks, and with that people quit their job too quickly without putting in place a replacement income that is not trading. It's my belief that if you're going to go full time as a trader, before you go full time you should take the time to secure enough passive income so that your account balance can grow unhindered by your nessecary living expenses. Of course nothing is garunteed but full time without a backup plan will make for some really hard times.

That's funny, so many people keep whining about their shit jobs, but they never realise it's up to them to find a better one ... honestly someone who can't land a proper job how could they make it in this unforgiving jungle ... the ruthless meat mincer ... the financial markets ... good for you, found yourself a satisfying one.

http://www.youtube.com/watch?v=kEELT5b3WKw

You must set goals for yourself and develop a history of numbers in your trading. I do this by using the Google Calendar. My goal is to make 2% a day. I determined this percentage based on my last three months of trading.

On Sunday I put down my account balances for that week. For example I'll put "AB 10,205 TPW 11225.50" (AB means Account Balance and TPW means Target Price for the Week [1.1 factor]) When I close a trade, say on Wednesday, I will I will put the number in plus the percentage such as "10511 ~3%" Do I make 2% a day? Usually or otherwise it would not be my goal. You can start out with whatever percentage you are averaging right now. Just be realistic.

Say at the end of the week you make 11,123 which is about 9%. You didn't make your goal but you got close. Now put that on coming Sunday's new account balance (in the back of my mind I will try to make 11 percent the following week to catch up but that's just games I play with myself).

I then give a commentary for the week. Strategies that worked or didn't by doing a Sunday through Saturday event on your Google Calendar. You can use the colors on Google Calendar to help color code different accounts or for the commentary.

Then determine when you (when your account reaches a certain goal) are going to start paying yourself and how much whether your account is 50k or a 100k for example. Be consistent in what you pay yourself. For example if you have a 50k account and decide to pay yourself a 1/2 percent a day which is about $250/day. Is that too much or too little? You also need a 'rainy day' fund for emergencies.

Hope this helps.

I'm 26 and I’ve been a fulltime trader since about 3 years ago.

I became a fulltime trader because I want to be free with my time (no rules no boss other than myself), I want to do something different than people in my natural circle, and I followed my intuition.

I have faced easy, difficult, and nightmare mode of trading but I stick with the profession because the reason I came here in the first place, remembering the good sides of the job, and I always find a way to have faith in myself, my future, what I do, and how I do it. And as I choose this profession consciously, it won’t be manly if I give up on it just because a few hard times. Giving up is for pussies. I am as manly as Rambo. I do what I wanna do and the rests of the world doesn’t matter ;-)

I don’t get bored because I only spend little time for trading and much time for other activities that excite me. It is possible because I only choose some concepts that don’t require me to sit for hours in front of monitor. I like set and forget stuff with SL-TP. Sitting there for hours doesn’t guarantee that my trade will go profit, right? So I take it easy and try to enjoy life more.

Right now, I am running a unique concept for my live trading and looking forward to an interesting concept to try on demo. I am excited. They will work for sure, they will give me trade entries. Profitably? Have no idea haha that’s where faith is useful for ;-)

That’s my story. Take what you like if you like when you like =)

Reading the last post. . . I feel like I should respond.

I'm not 26 and I don't live with my parents. No offense, I'm acutally jealous.

This is a business and shold be treated as such. Trading is hard, one of the hardest things to do. Going full time is a risk and has benefits. You just have to undrestand the risk to reward. It's a trade, understand your risk.

It can be dull. July can be like watching grass grow. Decemeber can be like watching snow melt.

Your biggest challenge, however, will be internal not external. What will you do when you lose 5 in a row and a bill is due???

Good Luck

Like jack larkin said...

Biggest thing for me is to live with a non steady income. You might have a few losing months and make 1 year's worth of income in 1 month. That's the life.

Most important is having money to pay bills at the end of the month. It might not sound glamorous. Seems as if we are living a life of poverty sometimes. But you will encounter that situation at one point - where it seems like bills pile up and you just aren't making money.

Such is the life of businessmen.

None taken because I don't live with my parents too. I am freedom seeker and my parent like to tell me things to do so I actually prefer a quick death than living with them haha

What will you do when you lose 5 in a row and a bill is due? I will go to the bank and withdraw some money from my saving and pay the bill =)

All my life I've been thinking money is easy, and so it is (law of attraction supports that). Many times I try to make money through a way and fail just to see money somehow comes from other way that I never predicted. That's why I chill much about business.

Actually my first and most important career is to live my life in the way that I like the most. And forex trading is probably the second career haha

I figured out I won't get out of this life alive, so I don't take it too seriously ;-)

This is my way. Everyone for himself

Whining about people whining. The irony

>>> (insert random you tube video about nothing)

You must be at a loose end, this Friday, just like myself.
But I have the shawshank coat on. You know, strolling through the park, no cares, no worries, take it as it comes.
I never knew where the word "hilarious" came from. Must have been named after you. Hilarious.

A random video, let me see, if I inserted one it would be the one currently playing (on repeat, I must confess)
Sheryl Crow - What I can do for you

Ah, where was I? Right! That's adorable, living in uncertainty, never knowing what the future might bring ... you must have flexible demand, I couldn't be without knowing there's a stable income that does not depend on my trading performance ...
Honestly if there's a losing streak, I still want my pleasures ... and fine things usually cost money ...
Adorable anyway, keep it up

In a way (http://www.urbandictionary.com/define.php?term=hilar)

Well at least your choice of name is an entertaining one. Imagine poor german footie player Lahm, his name literally means "lame". Or poor Harold Assman. Not to mention Ms. Ivana Fukalot ...