Saturday, 22 November 2014

Why I am not trading fulltime

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Today there was a comment from a reader "Chota Bheem" as follows:

Hello Ur Dave, I just came across your blog (thanks to niftynirvana). :) Looking at your performance, I think you are making an average of 300+ points in NF every month. Considering, one trades with lets say 6 lots (old quantity), one can easily make about 1L/month. Please dont take in wrong sense, but I'm just wondering what makes you still stress urself with your full time job ? I guess you can start trading bigger lots just with about 3 lakhs of capital (50k/lot to be safe). Again.. this is more of curious question.. hope I didn't sound offensive...

I thought about replying to this in the form of a post so that other readers having the same doubt can know about my views.



I would like to talk some about the financial aspects of trading full time.  Here I go,

If I was 23 to 24 years of age, about to start my career, had no responsibilities, I probably would have been trading full time.  Today at 41 years of age I am the only earning member in my family.  My wife is a home maker taking care of our two little princesses, age 10 and 3.  So I have the responsibility of all three of them.  Also I have some other financial liabilities, like home loan etc.  Currently, I am earning 50K plus each month from my job and I would like to ensure when I start trading full time I earn at least 50K per month.

What I have planned is that, first get rid of all financial liabilities and save some funds which can take care of my expenses for few years while I am trading and also some trading fund.  So that way I do not have any restrictions financially.  Even if I blow up my trading account or do not make a penny while trading, I can survive for few years at least.

There are lot of uncertainties when you opt trading as a career.  I am fully aware of that.  You do not know whether at the end of month market will pay you your remuneration.  It is not your usual full time job where you are ensured a fixed amount at end of each month if you work properly.

Currently I am in a learning phase.  My aim right now is to get my strategies right and build up the confidence by applying them in live market with minimum risk.  Make less mistakes, as less as possible, and learn from them.  Also I am in the process of making preparations for future, finance wise, creating a good corpus of fund.  I want to enter into the market full time only when I am fully equipped skill wise, emotion wise and finance wise.  I do not want to hurry.  Let it take time.  I do not know about the time period it is going to take but I am sure one day I will be trading for living.


 


17 comments:

  1. A very matured decision, URD.
    My best wishes for you!
    -TiZ

    ReplyDelete
  2. URD Sir,

    Thanks for this post. This is as if I am reading my own case with each fact and figure being the same, add to those the responsibilities of my octogenarian parents. Though I am in the same boat, I have already left the shore, caught somewhere in the middle trying to overcome many mental blocks and hurdles, unwilling to return to the shore but the other side not yet in sight; neither here nor there kind of situation. What keeps me motivated and hopeful is the trade journals and blog entries of good samaritans like ST, you, TBP and others you have listed below.

    All the best for you future endeavors.

    Regards,
    KSG

    ReplyDelete
    Replies
    1. KSG

      Thanks. Stick to it. Never lose hope.

      URD

      Delete
  3. Hi URD,

    Coincidentally, I had also put 'Trading for a living' page in my resotrading blog. My best wishes are with you on your journey!

    -ResoTrader

    ReplyDelete
    Replies
    1. ResoTrader

      Thanks for your wishes. I will go through it.

      URD

      Delete
  4. URD
    First of all, many congratulations on a level headed thinking. I have always felt that the best time to start anything in NOW. The best person to make a decision about yourself is only you. Heartening to know that you have chalked out your plans and sticking to it.
    By the way you are only 40 and the best time to be alive especially when the whole world is coming to India and investing.
    I see you as a 'trading for a living trader' in the next couple of years.
    All the very best for your plans. Love to your kids!!

    TBP

    ReplyDelete
    Replies
    1. TBP

      Thanks a lot. I am very optimistic about the future, mine as well as India, believing along the same lines the great RJ believes. I believe we will have much better time ahead than what we saw in the last bull run from 2003 to 2007.

      Thanks again.
      URD

      Delete
  5. Daveji,

    A very nice post. It is really amazing to see that you have learnt, all you could about trading, without quitting your job. Without sheer passion for trading, one can't work so hard.

    When my business was going well, I never bothered to learn anything new. When the business started declining, I thought about many alternatives and the last one in the list was Stock market.

    It is better to learn trading, in a relaxed manner while continuing with the present job, without pushing oneself too much. Here you can afford to wait patiently till the Market reveals itself. It will be like performing under pressure, if one chooses to quit his job and takes up trading without knowing anything about it.

    This post of yours is highly relevant for all those of a taking a plunge in stock market.

    Thanks,
    S.Karthikeyan

    ReplyDelete
    Replies
    1. SK

      Thanks a lot. No one in my family, relatives, friends or colleagues ever bought any share or asked to me to invest in shares when I first bought the share of IBP in FPO around 2003-2004. I do not know how I got attracted to this amazing world. My journey has been going on since then and I have seen many ups and downs.

      I feel myself lucky that my job allows me to concentrate on markets during trading hours. I have been working with the same company since last 14 years and earned a lot of respect from my boss and my colleagues. I work in BPO so I am in front of the computer connected to internet all the time and I have the liberty to just glance through the chart once every few minutes.. Now after so many years my mind is trained in such a way that I can do both things, concentrate on work as well as on charts simultaneously.

      You are right, it is just our passion and dedication towards something that forces us to keep working hard until we achieve it.

      I feel if we have things in our hand and we can plan for future, why should not we do that. First prepare and then attack.

      Thanks again.
      URD

      Delete
  6. Wish you all the best and may your life chart out as planned!
    I am going through the same thought process .. still learning and growing each day! Certainly one day will be trading for a living ..

    ReplyDelete
  7. Hi Dave,

    Thanks for sharing. All the very best for your endeavor. I am sure you will achieve your goal soon.
    Good Luck.
    Regards
    BS Chandran

    ReplyDelete
  8. Bhavir and BS Chandran

    Thanks a lot.

    URD

    ReplyDelete
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  10. This comment has been removed by the author.

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    Replies
    1. TSK

      I never had any issue with it.

      Thanks.

      URD

      Delete