What do you think of my plans?

[wh92stang]

Hello,

I am just looking for some advice from some of you veterens of the trading game. I plan on switching my career to full time day trading. I just wanted to make sure I do everything I need to before I quit my current job.

My plan is to start an account with Interactive Brokers with $30,000. This will get me above $25,000 with some wiggle room to cover a few losses. I am pretty familiar with U.S. Stocks and have been on and off swing trading them for about a year now. I'll start by paper trading and researching stocks even more in depth for the first month. When I feel comfortable I'll start making actual trades, starting with trades of about $5,000 and working my way up as I learn.

Once I start making steady money from stocks, I will start researching other equities like options, FX, commodities, futures, etc. Then I will paper trade, then I will trade for real when I feel comfortable.

My goal is to return an average of at least 10% per month on my investments.

If worse came to worse with my day trading I could afford to pay my living expenses for enough time while looking for another job.

Does my plan sound good? Anybody have any recommendations or useful tips for me?

Thank you all!!

 

[DC STOXX]

Are you an investor or trader?
Also, you should become a specialist in just one sector, or even a select few stocks....like the professionals

 

[everyonerich]

try to figure out if trade isnt going your way, how to make it back. i mean the strategy works even if it didnt work! if you already know then dont bother going back looking for job..

 

[wh92stang]

Yes, going back for a job would be my last resort. I have been an investor, and will still have money in other investments. This year, I've traded a little, but mid-term, not real short term. I'm going to take $30K out of my long term investments and actively trade with it.

 

[MrGecko]

Pardon me for being rude, but I think your idea is absurd.

Throwing 30g at the problem isn't necessarily the correct way to solve it... I suggest you try your hand at intra-day trading for longer than a month before leaving your job.

 

[DC STOXX]

If you have never traded intraday before. At least practice before quitting your job. It will probably take you months and years before you can do it consistently enough to make a living from.

 

[Tuffty]

My goal is to return an average of at least 10% per month on my investments

Keep it up for 10 years and you have $1bn, another 10yrs and you'll have £38 trillion.

What do you think of my maths? Does it make sense?

 

[dr.blix]

Keep it up for 10 years and you have $1bn, another 10yrs and you'll have £38 trillion

he might not be planning to compound it.

 

[wh92stang]

All that is is a goal. Some months I know I'll lose money, some i'll be even, some I'll make money. I don't know what to expect, I don't know how good I'll be. I've been doing pretty well at swing trading, and have a very good understanding of business and fundamentals. I still need some work on chart reading.

I don't need to make money right away, as I have enough for my expenses while I learn. Plus I will still have income from other areas including rental income.

How do you suggest I trade intra-day when I only plan on trading what I know which is the US Stock exchange and am working? I've got to just go ahead on my own and practice. I've done all of the practice I can without sitting and watching news feeds and charts all day. I'm willing and ready to try my hand.

 

[normbeef]

All that is is a goal. Some months I know I'll lose money, some i'll be even, some I'll make money. I don't know what to expect, I don't know how good I'll be. I've been doing pretty well at swing trading, and have a very good understanding of business and fundamentals. I still need some work on chart reading.

I don't need to make money right away, as I have enough for my expenses while I learn. Plus I will still have income from other areas including rental income.

How do you suggest I trade intra-day when I only plan on trading what I know which is the US Stock exchange and am working? I've got to just go ahead on my own and practice. I've done all of the practice I can without sitting and watching news feeds and charts all day. I'm willing and ready to try my hand.

Sounds like your keen there mate... my advice is to keep going and going and going, I have been in this game for many years and i am still changing the way i do things, for instance historically I am a forex trader and I have some stocks held longer term... but at the moment I am looking seriously at a large OIL trade, so its a continual learning process I am yet to meet anyone outside the banks that traded the same way all their career, and many change from forex to stocks to futures etc etc...

in case you didnt notice the markets have changed a great deal over the past 2 years, so what I was doing 2 years ago no longer applies now... if you catch my drift...

Just stay keen... and dont let the bumps knock you over...

good luck