KM, Some thoughts in response to your question, re: "only trading". As Alan points out I have "kept my day job". I've developed that more conventional business career over 20 years and enjoy it very much; trading is a newer, riskier sideline, and I'm only six years into that (I see it as a 10-year+ learning curve). I also have other business interests besides the one I'm currently running, and the trading business. Trading is something I enjoy doing, so I would probably do it even if I had to give more of the profits away (already do - Uncle Sam :). However, I suspect that if I *only* traded (as my sole business activity), I would become much too conservative and my results would suffer. IMO, it's a big advantage to "trade for the equity curve", instead of "trading for survival". Besides, I still very much enjoy my primary career, which is building high-tech companies. Being in the CA time zone, and having a great staff & associates to support me in the business, makes it possible to trade the market full-time AND run a business.
I wouldn't recommend going off to trade full-time with less than 1) proven trading skills beforehand (to yourself) 2)$250k+ in risk capital (preferably more), 3) all the bills paid off, 4) a year's living expenses set aside (plus, some other T-Bills and investments) and finally 5) a stomach for some serious risk.
By being "hedged" career-wise, I'm able to trade much more aggressively, which is a two-edged sword. I'll detail my insights on this more thoroughly in some pending articles on TigerInvestor.com.
Good trading, -Steve |
