Trade full time or don’t quit day job?

Been trading regularly this year with realized profits of around USD 300,000 so far. Initial capital was USD 200,000. Trade full time starting 2021 or keep my stable management job that has reached career ceiling? Annual salary just under USD 100,000.

Figure plan is to save USD 200,000 for savings and go with USD 300,000 capital for 2021.

Appreciate any real advice and thoughts. 🙏

 

Time to start a fund if you think you’re ready for it. Trading with own capital limits your earnings and i know starting your own fund requires a lot of stuff (raising cap, hiring analysts, picking fund style(long/short), fund values and etc) but if you make it out alive, your earnings wouldn’t be capped like you currently do(remember, you might lose it all on one bad trade without proper risk management)

 

Thanks for the good points but it makes me wonder how much I’d have to try and raise to make it worthwhile. Also, it’s such a short track record.

 

Do not quit your day job. This year has been a complete anomaly with regard to volatility which is probably the main driver in your ability to make money. 

As a side note..... how have you been trading if you are in IB? The general holding period has to be at least 30 days for most firms and they only let your trade the most vanilla of securities / options on a pre-cleared basis. 

 

Got it. Recommendation still stands. I think that you’ve had a great amount of success and am happy for you. But that’s been i a pretty crazy environment in the markets. Also, I think strategy’s and overall risk tolerance would have to change if you wanted this to be your livelihood. I don’t think it’s feasible for people to get those type of returns without taking huge risks, something I don’t think you’d want to do if it was your livelihood at stake.

 

you are making 150% return on capital while still doing a

stable management job that makes 100k per year

just keep doing exactly what you are doing...turn your 500k into 1.25mm next year

 
Most Helpful

If I were you I would keep doing what you’re doing for 1-2 more years to see if your returns are a result of your skill or unprecedented market volatility. If the former then I would quit after 1-2 more years of proven performance. Also allows you to save more and make you more able to afford risk

Remi Astronomo
 

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