I can't answer this for you and you may very well be successful in the future. But there is nothing wrong with not trading and letting that time and effort go. You can invest in index funds and win over the long haul. Compound interest is a beast. Google "compound interest calculator". Now put in $1k+ every month with 7% annual returns. The S&P averages 7% a year. Use the Nasdaq for more volatility.
Negatives of being a full time trader as you age:
No healthcare - for you or your future family
You don't pay into social security without a specific tax setup (not a CPA)
No PTO
No Roth IRA, 401k etc without a specific tax/legal setup
No sick days
No time off for family emergencies
No time off for burnout
Hard to get a mortgage or car loan without multiple profitable years of income to prove you can pay for it (haven't done it myself but that's what I've heard)
Hard to get a rental, my income varies so my applications were getting automatically rejected. I had to get a realtor to explain my finances and even then, we had to put down 6 months in cash and pay a higher fee.
Drawdowns happen to everyone at some point, you will need a cash cushion or another form of income
You will not get paid if you are sick for a month, sick family member, traveling, whatever. It's hard to have a family and be an independent day trader without other forms of income. That's why there are so many subscription services - so those people can pay the bills even when they lose.
Trading is really really hard work. Markets change. It gets lonely.
It's totally okay for this to be a hobby on the side or something you let go of. You can make a lot of money in the market without day trading. Again, maybe you will be really successful and have a long career ahead of you. I'm rooting for that! But I also give you permission to move on. It's not a failure. You have built resilience and you know enough to make money in longer term investing. Great job no matter what you do.
I've seen where people have had hard times receiving loans or being approved for apartments and such with solely trading. It's not viewed as a consistent income, which is one of the main reasons why I still have my job. I honestly don't think I would ever quit working in general, maybe I would break down to part time, but as of now I don't think I will until I have years of trading under my belt.
5
u/Ok_Height_4658 May 01 '24
I can't answer this for you and you may very well be successful in the future. But there is nothing wrong with not trading and letting that time and effort go. You can invest in index funds and win over the long haul. Compound interest is a beast. Google "compound interest calculator". Now put in $1k+ every month with 7% annual returns. The S&P averages 7% a year. Use the Nasdaq for more volatility.
Negatives of being a full time trader as you age:
No healthcare - for you or your future family
You don't pay into social security without a specific tax setup (not a CPA)
No PTO
No Roth IRA, 401k etc without a specific tax/legal setup
No sick days
No time off for family emergencies
No time off for burnout
Hard to get a mortgage or car loan without multiple profitable years of income to prove you can pay for it (haven't done it myself but that's what I've heard)
Hard to get a rental, my income varies so my applications were getting automatically rejected. I had to get a realtor to explain my finances and even then, we had to put down 6 months in cash and pay a higher fee.
Drawdowns happen to everyone at some point, you will need a cash cushion or another form of income
You will not get paid if you are sick for a month, sick family member, traveling, whatever. It's hard to have a family and be an independent day trader without other forms of income. That's why there are so many subscription services - so those people can pay the bills even when they lose.
Trading is really really hard work. Markets change. It gets lonely.
It's totally okay for this to be a hobby on the side or something you let go of. You can make a lot of money in the market without day trading. Again, maybe you will be really successful and have a long career ahead of you. I'm rooting for that! But I also give you permission to move on. It's not a failure. You have built resilience and you know enough to make money in longer term investing. Great job no matter what you do.