Re: Is it good to leave a job for full time trading in India on the US market? What i
Bro,
I have been learning and trading for 5 years now but only left my job few months ago. I have been consistently profitable for 6 months when I resigned my job. First try to learn trading while working, then try to create a strategy and test it post market time by replay. If the method is consistently profitable for last 3 months then you test it for one month by taking one month sick leave from office. Once that also moves well. You can think about next step.
Now, calculate your monthly income from your full time job divided by nof hours work per day multiplied by no: of working days per month which gives your per hour income from your job. Now, do the same for trading. If you are trading everyday day for 20 days a month and earned around 20% of your capital per month, then it will be 20/20 which is 1% return a day. Now calculate the total risk capital you can allot for trading when you are going full time, take 1% of it and divide it by 8 which is your per hour income from trading.
Compare these two things per hour income from job and trading and if latter exceeds or equals your first then you can go full time trading, till then it is a no for full time trading. This is how I transitioned from being a part time trader to being a full time trader, hope this helps. Take care.
Regards,
Tlahuicole.
I completely agree with Raj...
Little food for thought... as whatever is gonna be your decision & am sure you wont consider the negatives of trading life till you completely leave your job:
1. You say you have been dabbling in US stocks since 2 years.... the period in which all has been smooth sailing one way bull market... typically every bull market I find many start making money (albeit in the later stage & think of taking trading full time & leave their secure jobs... have seen 3 bull markets & same mindsets I see everytime...
2. I have been trading in Indian markets since 15 years & following it since 1990... I am a full time trader, full time as in , trading income is now my main income... IMHO, Medium to long term trades will always be the most profitable... I have settled to the level that I do 5/7 trades a month & see charts once or twice a week... so If you do some research & find method which suits you best I am sure you will not need to give up your job & earn well in mkts too...
All the best which ever way you go...:thumb:
Little food for thought... as whatever is gonna be your decision & am sure you wont consider the negatives of trading life till you completely leave your job:
1. You say you have been dabbling in US stocks since 2 years.... the period in which all has been smooth sailing one way bull market... typically every bull market I find many start making money (albeit in the later stage & think of taking trading full time & leave their secure jobs... have seen 3 bull markets & same mindsets I see everytime...
2. I have been trading in Indian markets since 15 years & following it since 1990... I am a full time trader, full time as in , trading income is now my main income... IMHO, Medium to long term trades will always be the most profitable... I have settled to the level that I do 5/7 trades a month & see charts once or twice a week... so If you do some research & find method which suits you best I am sure you will not need to give up your job & earn well in mkts too...
All the best which ever way you go...:thumb:
I have been learning and trading for 5 years now but only left my job few months ago. I have been consistently profitable for 6 months when I resigned my job. First try to learn trading while working, then try to create a strategy and test it post market time by replay. If the method is consistently profitable for last 3 months then you test it for one month by taking one month sick leave from office. Once that also moves well. You can think about next step.
Now, calculate your monthly income from your full time job divided by nof hours work per day multiplied by no: of working days per month which gives your per hour income from your job. Now, do the same for trading. If you are trading everyday day for 20 days a month and earned around 20% of your capital per month, then it will be 20/20 which is 1% return a day. Now calculate the total risk capital you can allot for trading when you are going full time, take 1% of it and divide it by 8 which is your per hour income from trading.
Compare these two things per hour income from job and trading and if latter exceeds or equals your first then you can go full time trading, till then it is a no for full time trading. This is how I transitioned from being a part time trader to being a full time trader, hope this helps. Take care.
Regards,
Tlahuicole.