Full time trading - Your view pls.

Dear Friends

Tradeji forums are excellent and I hope my seniors will give their views on my following idea.
I am 30 and workin as a Mechanical Engineer for a reputed company.
I have been trading for the last 2 years.
I started with short term trading in cash (Delivery) and slowly now i graduated myself to trading F&O and cash intraday only.

After lot of thinking, i now plan to quit my job and enter full time trading.
I follow technical analysis for trading in F&O.
My working capital will be 2 lacks for full time trading.
I am going to buy Amibroker or Metastock and install in my home PC.
I will also subscribe to some data vendor for RT data feed.

I will be grateful to all those friends who give their genuine views and advices on my above proposal as it is going to be my future.

And I don't have big targets of multiplying the initial capital to manyfolds.
With the investment of 2 Lacks, i just want to trade for a living.
May I expect a monthly return of 15K from the above. Pls. advice me.

Thanks & regards
Vikrum

My personal advice is PLEASE CONTINUE YOUR JOB OF MECH.ENGR.

Instead of buying Amibroker or Meta ,please subscribe to trader who offers technical charts apart from trading.

You have right right attitude of not having any big targets ,but of modest targets.

Think well before quitting the job.Anyway,it is completely your choice.

Dear Friend,
It seems that u not have enough metastock/Amibroker experience. I suggest before leaving the job first u start working/studying with Amibroker/ metastock. Define your own trading system and master it. Once u get rock hard confidence in u and ur system then think of leaving the job.
Also keep in mind that leaving the carreer of Mech Eng. is like wasting the years of professional education and exprience. And again if u decided to go back and pursue ur originals, then trading experience will not be counted.
Wish u all the best!
Avlok

Dear Vikrum.....

I can suggest only one thing

PLEASE PLEASE CONTINUE YOUR JOB !!!

trade for fun...generate surplus and enjoy....BUT be sure of a steady stream of Income...

Undercapitalisation will bleed if you venture in F & O even on part time basis.
A person driving in a one way street may develop a feeling that he/she is a good driver.
Knowledge of tools is also a prerequisite qualification apart from Mkt.

Try in Cash Mkt with 2 Lacks,10K per month is possible,but you require lots of screen time experience.A person can do Swing Trading as part time,why to leave job unless you feel of participating in Intraday.

Margin trading is ,what we do in F & O that gives a wrong notion of Capital Requirement.

You have to make atleast twice what you get in a job to justify leaving a job (which gives you steady stream of income,increments,retirement benefits,LTA,medical and other benefits ) and the risks you take in trading.

Considering the above,Rs 2 L as trading capital is too low.Unless you have confidence in yourself and your system and a trading capital of upwards of Rs5 Lakhs, taking full time trading as a career option is risky.

I suggest that you take a leave of 1 month and trade full time and see if you can make the desired amount confidently before thinking of leaving your job.

Best Wishes,

Smart_trade

As uashish said, 2 lakh is meagre capital as far as futures are concerned.

Even after such a carnage in the markrt one contract's value is 1,64,000(3280*50).
Leverage positions are cut at the discretion of your broker during big markrt moves.
If u are not daytrader u dont have to leave your job.
If you are adamant about resigning the job, better take a leave of atleast 1 month on any suitable pretext for trading.
Results shall answer your dilemma.

dear friend,
dont quit from ur job.for the last 5yrs, i have been working as a full time trader.in my experience, there is no single complete system or book in this universe that helps u to make money in this market. Its an ART.this is the world's largest n toughest bussiness.dont try to compare it with any other bussiness.MARKET has particular cycles.I am telling u in details.suppose u come india for doing bussiness in july-aug.it is rainy season.u see everybody using umbrella.u start selling umbrella n get a profit.but after 3 months,can u make same amount of profit in nov-dec.no.why?it is now winter.if u change ur bussiness from umbrella to sweater,then u can make profit.Like this,stock market has this type of seasons.if u follow indias last 3-4yrs weather/season report then u can have an idea abt indias season.but in stock market,there is no season forcasting resource.market moves in min 5,10,20,50 yrs cycles/season.if want to know market u have identify this cycles.from oct2002 to oct2007, we were in bull cycle.From nov07,after a 5yrs season , it changes.who will tell u this?no book,no system,no tv channel ,nobody will tell u.there is only 2 things that tells u abt this cycle.1>MARKET DAILY CHART(for the last 100yrs of dowjones)2>foreign institutinal investor.If u follow this 2,then u can know the market.

Dear Er.,

My personal advice is "You should work where you get mental satisfaction".

First tell us why you want to quit, the job? I know the salary for any average Mechanical Engineer is above what the said 10K you expect from trading. I don't understand why you want to come to get degraded to 10K from your nice salary. But if you can enjoy trading than Engineering then no problem you are in the good side.

You have prepared/studied in an engineering cource to become an engineer, the same effort is again needed to become a successfull Trader. If anyone think to trade for a living from tips/calls providers then no need of any education/knowledge to earn. But that will be boring and you will get no enjoyment rather than a mechanocal system following calls/tips of other. I am not saying that you are looking for that kind as you have already said you are trading with technical analysis. One should always get some enjoyment called job satisfaction or it will not be fair always.

When you start full time trading you are defaulted like a new business starter. You should be learning many thing that you though were right/wrong earlier...your midset may even change. More over It seems you still have a little bit of fear factor in you to take trading for a living...as you have asking us whether you should take or not. The decision should always to be yours and it should be a taken with full confidence.

I can put some points here that you can consider before quiting your job.

A trader require:
1) A calm minset.
2) Patience (very much).
3) Enough Confidence.
4) A Trading Setup.
5) Money Management.
6) Enough Capital (No leverage)

You capital Rs:2L seems much low to enter into F&O. In the starting I will say to avoid O from F&O, just trade in Futures alone. But you should have enough capital.

You main aim to go to Futures trading should never be the leverage it provides. I strongly advice to take any leverage or margin trading.
Say you are trading NIFTY and nifty is @ 4000 with a loit size of 50 then, you should have atleast 2L as capital to trade 1 Lot nifty. In other words your RISK should always be in the range of 1 to 2 % of your "capital".

Also find a Trading Setup and stick with it for a long time...Start with paper trading then enter with small money then extend...when you are confident.

You can search in the next for the above said 6 topics to read more. Also remember there are many morething you need to consider...

Finally there is no issue if you come to trading bu quiting job if you are fully confident and can arrange or practice the above said things...as trading is not at all gambling...its a business which need SKILL, PROPER MANAGEMENT AND INVENTORIES.

Amibroker/MetaStock with a good RT like esignal is enough. If you have a broker having chart tools in their trading software thats also enough.

Prepare the plan first...then execute...you will defenitely rewarded...and most welcome here.

Excuse me for errors if...

Regards,
Hari.

Dear Friends

Thanks a lot for all your valuable advices and inputs.
I am really happy to see some excellent ideas like taking leave from the current job and trying full time trading.

I get ~ 30K per month in my current job as Mech. Engineer.
The reason for my plan to quit the job and enter full time trading is becoz I like trading more than anything as a job.

Will anyone be kind enough to share your success stories if you also had gone thru similar phase like mine.

Thankyou so much to all who shared their views
Vikrum