Nice one
Well, I was a full-time DTer for the best part of one year.
I've told my story before, so won't bore the regulars with it again.
In a nutshell: I was unemployed for a long time, 59 y.o., family, mortgage, no prior trading experience at all, small pile of cash to trade with, which had to stay liquid to help pay bills.
I agree with
@Endless points.
Why would you want to be a full time trader? If so, why a DTer rather than a ST/investor? Most people probably like the idea of "being their own boss", no more corporate BS etc - fine. You will need a substantial nest egg though to start.
Everyone's circumstances are different, so be careful when you listen to others. Here's my thoughts for my circumstances (if you are thinking of doing this, you probably should be considering the following as well)...
I now have a casual job which has crap pay - about $25p.h. - but it's a lot better than nothing. This, plus what my wife earns, can pay the bills. The money I have in the market can now accumulate (a new experience for me).
I would not be a full-time DTer, I would prefer to be a ST investor, buying early, holding, waiting for spikes etc., with a bit of DTing to make life interesting. This would suit my personality better.
If I was going to do this full time - which is possible when I turn 60 and could get my hands on my Super - I would have at least 2 years worth of cash put aside safely, enough to pay major bills like mortgage, groceries etc. - for me this would be about $100K. This doesn't get touched, ever.
You need to work out your budget. If you have a significant other, then they must be included in this. I'm lucky, my wife actually wants me to trade, since she sees that I enjoy it and it's good for my mental health. From previous discussions on this thread, most people seem to have partners who either are not supportive, or don't understand what you are doing staring at a computer screen all day long, often appearing to be doing nothing. If this is your reality, I would strongly suggest you either get another partner, or reconsider full time trading. If you are doing well, then it'll all be wine and roses - when your trading gets tough, which it will, you might feel very isolated - not a recipe for a good relationship.
What are your expectations? Do you intend to earn at least the equivalent of the average wage (about $80K or so now I think) from your trading? You will be using some of this to pay bills, right? Is that enough? With the exception of Endless, most of the traders I know/have read about etc think they are doing well when their winning percentage is about 25%. How much total capital do you need to generate a profit of $80K if your winning percentage is about 25%?
To attempt this without a proven trading plan would be madness. I wonder how many peeps on this thread do risk/reward assessments/money management planning.
Know Thyself - for me, the single most important aspect of trading. More important than FA or TA or anything else which ends in A. How do you respond to stress? A feature of the DT thread is all the woohooing when peeps are on a winner. It's a great feeling, but I do wonder how many maintain some semblance of control on their mental state, either when they are winning, or losing. There are some fab books around on the general topic of "trading in the zone" - well worth reading and thinking about deeply before jumping into this full time.
I know that I will never be a great trader, regardless of whether that is DT or ST. Why? Because I'm not prepared to put in the countless hours of research which is required for FA, or the countless hours to be really proficient in TA. I doubt many peeps realize just how much work that is (apart from just following their favourite HC guru and reading a notice or two).
I will be a good trader, though, and am confident that I can generate a regular income over time. It will not be the average wage, but it will be enough enjoy a good life (keeping in mind my personal circumstances, which will be different to yours).
We've had discussions like this in the past. I once said that I thought I needed an investment pot of about $300K to generate the income I want with some degree of comfort. Other people poo-pooed that idea, suggesting that a much smaller amount would do. It's an interesting question. One thing is for sure though: there will be no-one else to blame if it all goes pear-shaped.
Good luck to one and all
