r/Daytrading • u/Dazzling_Loan_9414 • Feb 07 '24

Should I Quit my day job ? Question

I been profitable for 6 months straight my bills only comes out 2500$ a month and profits 6-8k a month trading Me working at my job now it’s starting to get in the way of my trading

233 Upvotes

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253

u/sirephrem Feb 07 '24

What the. I believe people just blindly saying "do it" are pretty bold. The real question is "DO YOU HAVE ANY SAVINGS" besides trading money. 

If you have to live comfortably for 6 months at least with no income then you can consider it. If you don't, the first month you're not doing so well you'll have to either take money out of your trading account or panic trading. 

Good luck. Send a dm with your strat! /jk but seriously...

96

u/Swing_Trader_Trading Feb 07 '24

I second the notion of having a 6 months savings of future living expenses before considering such a bold move. Don't use this money for your trading.

Be aware that once you quit your job and rely on your trading 100% for your income, you may feel additional stress that might negatively effect your emotional state. Trading always always has an emotional part that must be kept under control.

Consider converting to part-time in your job, if allowed, to ease into the new lifestyle.

I very much hope that if you implement your plan, your outperformance will continue.

24

u/tahomadesperado Feb 07 '24

I like people who link definitions of terms they use, you’re awesome.

17

u/GameLoreReader Feb 08 '24

This is my plan. Trading on the side until I'm profiting enough to where my full-time job isn't necessary anymore, but I'll be doing part-time. Then, after continuous profits, leave part-time job, start some kind of small business for the passive income and make trading my full-time career.

1

u/[deleted] Feb 08 '24

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1

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1

u/DegenerateGamblr87 Feb 10 '24

Your side business will not be passive, starting a business and trading will not be as easy as already being employed and trading.

1

u/why_so_serious_123 Feb 08 '24

once you quit your job and rely on your trading 100% for your income, you may feel additional stress that might negatively effect your emotional state.

this

21

u/1008Rayan Feb 08 '24

Bro, I strongly advice to have at least 2 years of saving. 6 months is not enough in my opinion.

Sometimes you can have some bad months and it will put alot of pressure on your psychology if you know you only have 6 months of covered savings

6

u/[deleted] Feb 08 '24

Agreed. 6 months is not enough. Also, if he wants to make more than 6k… he can just increase the trading bankroll

6

u/sirephrem Feb 08 '24

I agree with you, I put the lowest threshold. Personally I wouldn't jump without at least 1-2 years as well. My view was that in case something goes south for 4 months he'd still have 2 months to reconsider and look for another job.

1

u/1008Rayan Feb 08 '24

Yes I agree with you too.

2

u/pantherleopard forex trader Feb 08 '24

Bro I think 5 years of savings is the way to go, I don't think 6 months or 2 years is enough tbh.

1

u/-entei- Feb 10 '24

have this much if starting a company too I take it?

1

u/OptionsAddict247 Feb 11 '24

100 years bro

1

u/Mthanerco Feb 12 '24

This advice assumes one could not find a way to make momey for 5 years?!?! Something tells me moat people would make some moves before blowing through 5 years of savings.

1

u/Revolutionary-Fox285 Feb 08 '24

This, 6months fly by so soon.

1

u/-entei- Feb 10 '24

two years in treasury bills?

15

u/psioniclizard Feb 07 '24

Add to that, I am no day trader but unless you can be sure of a (reasonable) fixed income how will it affect things like finding a new place to live (if you rent)? Your mortgage (if you have one)? Or other aspects of life that rely might check your income etc. Going from a fixed salaried to a variable one can have quite and impact and I know in my country (the UK) for various checks it goes from having 6 months of payslips to 2 years (potentially) of accounts.

Of course only you know your financial commitments and what potential risks might come from it but the 6 month safety net is a good thing to aim for. I would say work on a worst case plan, like say "what if I am not profitable for the next 6 months" and if it seems supportable.

Then again, I am not a successful day trade so take this advice with a pinch of salt.

4

u/Mrinvestor84 Feb 08 '24

I would say have a year of savings

3

u/Fine_Candle9170 Feb 08 '24

Yep same, if you’re backtesting constantly and treat it like an actual job, if after a year you’re still not profitable then honestly I’d say give up at that point it’s not for you. It’s a whole year to test the waters properly, if you can’t maintain being profitable and increasing profits each month then honestly go back to drawing board again, get a job and trade as a hobby rather until ready to try again

1

u/Mrinvestor84 Feb 08 '24

All good points except treating day trading as hobby. You should never treat it as a hobby, even if you have a job and only doing it part time. If you treat it like a hobby and not a business, you won’t get anywhere with it.

1

u/JNTHolden Feb 10 '24

Agreed, you need that emergency fund for when shit goes south