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Becoming a Full-Time Trader

Thursday, May 28, 2009 Leave a Comment


Have you ever dreamt of staying at home to work? Dreading that drive to the job? Tired of the boss, and all the office politics? How about the minimal two weeks of vacation and maybe you get some personal time? Sound good? It does to me to.

Fortunately, I have the ability to multi-task, and am able to trade at work. Don't know how long that will last, but I'm thankful for the time I am able to research and study the market trends, the blogosphere, and all the tidbits on what is happening in the world of finance. I have often wondered what I would need to trade full-time, and be able to free myself from the daily routine and restraints that a public job have. So here's my "to-do" list before I decide to walk off the job:

1) Have enough funds to pay off all debt. This one is a biggy. You do not want the restraints of a mortgage payments, car payments, and credit card payments if your income is uncertain.

2) Save enough for two years of your salary. This would be untouchable funds. In a savings account or something with minimal return. This is essential if you have a family, and you are the sole provider. If you are single, you could bring it down to a year.

3) An office or designated place for trading. This would enable to you to focus and keep concentrated on the markets and all the trading activity. You won't successful being a full-time babysitter and stock trader. You'll miss good opportunities.

4) Don't forget health & dental insurance. I haven't researched this out, but this would be an essential must-have, and will be expensive.

5) Don't forget about taxes. Yes, Obama is ready to take your profits. Nice guy, but he & his predessor have led/are leading our country into bankruptcy.

6) A Disciplined Strategy. You must have a defined strategy. Mine is 25% unless the trend is in my favor. And you must execute with a disciplined frame of mind.

So in a nutshell, here's my formula:

Stock Cash minus (Debt + 2 Yrs Salary + Insurance + Taxes) = Stay at home fulltime

 

3 comments »

  • Anonymous said:  

    you forgot one thing..knowing and being in touch with you....you are incredible! i love your site..in this market you are a savior!

    May 29, 2009 at 6:46 AM
  • KC said:  

    Thanks for the kind words. I'm working on updating some of the blog, as this one seems to be awfully cumbersome and difficult to manuever. I've been very fortunate with the picks I've selected, and hope that this will continue.

    My dream is to stay at home, but not be idle with my time. I want to be a missionary, start a school, something that will be able to touch lives and help those in need. It's hard to think and act on those things if you have no substance (or cash) to rely upon. Hopefully some day, Lord willing.

    May 29, 2009 at 6:56 AM
  • PDE said:  

    KC;
    Regarding #4 - Health Insurance. Left corporate life and started my own international consulting company. This also requires international travel, health insurance, etc. After some research found HTH Worldwide.
    http://www.hthtravelinsurance.com/glCitizens_plans.cfm
    Seems I remember that one has to travel outside the USA to sign up and get policy started, but no limits upon how long one can be in the USA after you return. When first started the policy, had a friend that managed a doctors office and she said the cost and coverage was better than her policy. Have also had it several years, renewals, etc no problem. Might be an option for your consideration.

    Congrats on your performance - tracking on CoVestor!
    PDE

    July 2, 2009 at 1:02 AM

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