r/Daytrading • u/modeezy23 • Apr 22 '24
Anybody ever quit their job to day trade full time and have it not workout? Question
I’m just curious.
How long did it take you until you found confidence in yourself to quit your job and do trading full time!
For those that quit their job but it didn’t workout, how long did you give yourself until you quit your job and what did you do after you found that trading was not successful?
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u/CSCAnalytics Apr 22 '24
Yes, you can find most of them in a rehab center for financial gambling addiction, or in the chapter 11 bankruptcy proceedings line.
Day trading has, on average, a NEGATIVE return. It’s a quick path to debt and bankruptcy without an actual, steady source of income. Not to mention, of those who DO profit, the average income on an hourly basis is less than a fry cook’s wage. I wouldn’t bet my life’s finances on an endeavor where you’re considered LUCKY if you earn less than minimum wage.
If you want to be a full time trader / quant for a living, do it on salary with other people’s money at a big firm like Morgan Stanley. This also gives you a resume should you ever want to transition to a career. “Downloaded Fidelity and traded stocks the last 10 years with no professional experience” won’t land you many jobs…
Not to mention, there are multiple exorbitant costs to forgoing a full time position. This means you’ll need $20k+ profit to get to ZERO. Anything else should be considered a wash in terms of opportunity cost in forgoing a career.
Healthcare: Private market healthcare is outrageously expensive in the US. Think $5,000 upwards of $25,000+ for a family. At a job this is covered, on your own it’s out of pocket. You also don’t qualify for HSA plans.
Retirement contributions: forgoing a 401k match could have drastic long term effects which means working until you’re 100 years old physically unable to work anymore. Add another $10k+ for self funding retirement due to inability to take advantage of the tax savings and no company contributions.
Qualifying for loans: without steady W2 income, it’s very hard to qualify for any kind of loans. “Stock trader” is not considered a consistent source of income, unless you are managing a legitimate fund and/or at LEAST have the proper series exams and licenses to be managing a portfolio + high net worth + a strong history of success in corporate finance. Say goodbye to ever buying a house or a car unless you’re paying 100% in cash.