Day-trading Vs Software Profession, Need an experts advice...

[crazyboy82]

Dear All,

I am a software profession aged 29, from Chennai area. I have been with the Software industry for last 6yrs, and at sideline I keep myself engaged on Stock market as I am a stock investor; above that I have some inherited business interest too.

Now serving in the industry for quite some time, I am not able to foresee myself at a great position economically (though its labelled as high-pad job at the end of my career journey. I know its common with 8-5 job, so in recent time I have been badly thinking about starting my own business and my preference is self-employed (Day-Trading) given my personal choices and risk taking capabilities.

But still I am not able to take my conclusive decision whether to go-ahead with my personal interest on Day-trading or continue serving in the same profession. The main hesitation is due to the quantum of the risk involved in trading. Though I am personally capable of taking risk to some extent, not able to take bold move as many keep saying only 2 out 100 wins in the ground. Though in words I would say, I can be 1 among these 2; in practical it doesn’t seems to be soo easy.

So I request all you fellow board members valuable advice to shed light on my confusion...

Looking forward to all your comments... :clap:

 

[intellibitz]

Do not leave your job. If you want to be successful in another business(trading or whatever) you need to keep your job until you have become a major success in other business.

Keep trading as your hobby until you are earning more in trading than any other job that you are currently doing.

Trading is easy if you can continue trading come what may for the next 3 years. Can you afford to do full time trading for the next 3 years and still support your family and their lifestyle? This is a question you need to answer.

 

[Raj133]

my thought process is

1) Trade 3 years and earn min 3 crs (exculding TAX), then quit you job.
2) Deposit 1 crore in FD or any other monthly income plan so minimum you will get 60 - 70 K pre month. no problem for your bread and butter.
3) use 1 crore in equity investment
4) use .5 crore positional trading
5) use remaining .5 for day trading.

All the very best :thumb:

 

[ryan4ucar]

my thought process is

1) Trade 3 years and earn min 3 crs (exculding TAX), then quit you job.
2) Deposit 1 crore in FD or any other monthly income plan so minimum you will get 60 - 70 K pre month. no problem for your bread and butter.
3) use 1 crore in equity investment
4) use .5 crore positional trading
5) use remaining .5 for day trading.

All the very best :thumb:

Buddy your thinking is the funniest i heard in years if anybody earns 3crs doing trading the y the hell will he make a deposit of 1cr in bank fd , you should have atleast said keep on buying lottries with top prize minimum 3cr and then leave your job.

 

[piyush08]

Buddy your thinking is the funniest i heard in years if anybody earns 3crs doing trading the y the hell will he make a deposit of 1cr in bank fd , you should have atleast said keep on buying lottries with top prize minimum 3cr and then leave your job.

Why should the person NOT keep aside 1crores in a bank FD and reduce his risk and get a stable income from one source.. trading as it is very volatile, if I dont keep withdrawing profits and keep putting it right back in on some bad day all of it might be gone. As it is with the kind of leverage available on MCX I don't one requires to keep crores of money in trading accounts.. how large positions do you wanna take.. 50 crores or what ??

 

[tmwizard]

piyush08,
i agree with you.. we need to take out part of profits to safer investments... Need to do this periodically... Like a dividend payout from the business


Raj133,
Your targets looks very ambitious.. Hope you have a good plan/strategy to do this..


crazyboy82,
quitting job and doing trading:
You need to consider trading as a business in which you might fail or you might succeed. So, do you have enough funds to support you/family while you are venturing into this new business..
doing day-trading in parallel to your job:
This *will* affect your job.. However, if you have strict boundaries, you should be able to fairly manage both.. You will need to restrict the time you spend on the markets to just 2 or 3 hours in the day.. At the end of this period, you should close all your trading software/websites and concentrate on your job..

 

[ryan4ucar]

Why should the person NOT keep aside 1crores in a bank FD and reduce his risk and get a stable income from one source.. trading as it is very volatile, if I dont keep withdrawing profits and keep putting it right back in on some bad day all of it might be gone. As it is with the kind of leverage available on MCX I don't one requires to keep crores of money in trading accounts.. how large positions do you wanna take.. 50 crores or what ??

Look buddy trading is hard and not meant for any tom dick and harry. I am not advising to keep all the money in trading account , what i mean is a trader should learn to adjust as the market changes in order to become a consistently profitable trader and also you should never have more than 1 % in any given trader do hell with the leverage infact you should have a account big enough that each trade is like .25 % of the entire account ... as far as removal of money from the account is concerned you should do it regularly do it to pay the bills and other things you may also do an fd but the main point is build your skills first to become a consistently profitable trader the money will automatically follow , if you are not confidant as a trader you might as well put all the 3 crores or whatever you earn as 10% fd ... 30 lakhas a year is good enough for a living isnt it , but i wont blame you , its natural for humans to be risk avers and make stupid decisions when it comes to money.

 

[ryan4ucar]

piyush08,
i agree with you.. we need to take out part of profits to safer investments... Need to do this periodically... Like a dividend payout from the business


Raj133,
Your targets looks very ambitious.. Hope you have a good plan/strategy to do this..


crazyboy82,
quitting job and doing trading:
You need to consider trading as a business in which you might fail or you might succeed. So, do you have enough funds to support you/family while you are venturing into this new business..
doing day-trading in parallel to your job:
This *will* affect your job.. However, if you have strict boundaries, you should be able to fairly manage both.. You will need to restrict the time you spend on the markets to just 2 or 3 hours in the day.. At the end of this period, you should close all your trading software/websites and concentrate on your job..

I am sorry to say advice no 3 about daytrader is either coming from a casual trader or a non trader, he is basically telling you for 2 or 3 hours you can go to a casino loot them and come home , if you stay ther for to long say 5 hours you might get drunk loose all your money and might also not be in a position to goo to work next day ... so instead go for only 2 hours have fun and come back .... dear sir (the one who is giving advise) there are more inexpensive hobbies to suggest like going to gym , music classes or watching tv , dont bother trading if you can dedicate your fulll effort into it otherwise it will become an expensive hobby hope you understood.

 

[AlgoTrade]

Dear All,

I am a software profession aged 29, from Chennai area.
..............

Take off for a month.
Trade full time.
Check your trade results at the end of the month.

Again post your query.

 

[Makarand108]

Do not leave your job. If you want to be successful in another business(trading or whatever) you need to keep your job until you have become a major success in other business.

Keep trading as your hobby until you are earning more in trading than any other job that you are currently doing.

Trading is easy if you can continue trading come what may for the next 3 years. Can you afford to do full time trading for the next 3 years and still support your family and their lifestyle? This is a question you need to answer.

Great advice & great quote too: Trade responsibly. Trading is injurious to wealth.
Thanks