of course, it's relative to the market's volatility
it's all about how you condition your mind, the attitude you adopt , and how you approach the market
to me going out for a jog means jogging 3 miles at a 10-11 minute pace. to someone who is more experienced and in better condition than me (not very difficult), going out for a jog might mean running 12 miles at a 7 or 8 minute pace.
if i changed my (approach) and made-up-my-mind (attitude) to get in shape and train (conditioning), perhaps i would be able to improve my distance and pace.
Last edited by tigertrader; November 9th, 2015 at 08:29 AM.
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I think I would need to answer this question before going full time: Do I have enough money on my trading account that by risking a small percentage per trade, the profits from this % at risk are sufficient enough to pay my bills at the end of the month?
Last edited by ElChacal; November 9th, 2015 at 09:38 AM.
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I think there are more important things to worry about when making the transition to full time than how you may be perceived by others. While having the support of family and friends is very important as most traders can attest, if you are not properly funded going in you will most likely not make it.
In my most humble opinion if you are drawing money out of your trading account to live weekly or monthly, therein lies the issue. I think you should have your trading account segregated with a fixed amount of money that you could lose and still be able to survive for at least a few months even if your trading account goes to zero. When making the transition to full time in trading, the added pressure of continually pulling living expenses out of your trading account will wear on you over time.
For me I was fortunate enough to go full time about 6 months ago with a largish trading account that is totally separated from my day to day accounts. I know I can go for a couple of years without having to worry about tapping my trading account. If I blow it up, I will survive and not be on the street. That is allowing me to focus on execution and consistency which are much more likely going to be your main stumbling blocks to becoming a successful and profitable long term trader than any identity crisis you may be worried about now. Just my 2 cents.
To me a professional trader is someone who creates a moral hazard with other people's money. If you win, you gain a windfall from your performance fee on a large amount of OPM. If you lose and blow up, you go get a well paying job in finance.
""Professional" retail trader is much more like a start up company. There is an infusion of capital and then there is a burn rate and while you are above water you are a professional but most are going to burn through that capital and do something else in the long run.
I would imagine also that many who claim to be professional retail traders who are really just trading a small fraction of family//inherited money, have that as a safety net and have additional income streams from that capital to at least pay the tax man and health insurance premiums.
Just because you don't quit your career to chase financially irresponsible pipe dreams in most cases doesn't mean you are not serious about the markets.
You are correct. I was thinking of the emotional issues during and after the transition to a pro trader. It could be our own sense of self which is usually identified with our profession. What about others' perception that you stare at screens all day, being considered as not productive etc. Even guilt for making money, jealousy from others, inactivity from trading success, to name few others.
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