I have decided to reduce my trading work from full-time to 3 days a week.
It’s been nearly three years since I resumed full-time trading, back in August 2013 (my Trade2Win article provides some of the journey’s details). With the beautiful benefit of hindsight, it now looks as if my decision to promptly stop two revenue-generating activities in order to trade FX full-time, was pretty insane!! If not insane, it was certainly a little premature – it would have been wise to do more elaborate testing prior to making the switch.
To be clear: I still believe that i will become a consistently profitable trader. I believe that I will get there. I am still working hard in getting there, and am asking others for help along the way. There is a path ahead of me which is giving me hope and a realistic expectation of being able to make it.
NOTE: THIS BLOG WILL BE CONTINUED TO BE UPDATED WITH NEW BLOG POSTS AS REGULARLY AS BEFORE!!
However, given that I am not making money from it, I think it simply is not responsible to keep on doing this indefinitely, without any other income sources to rely on. I will therefore return to playing online poker and cash games, as well as commence sports-betting on the Betfair exchange. I consider both of these activities as having overlap with trading in the financial markets, as opposed to working on totally unrelated business projects, and thus am hoping that it will trigger cross-activity brainstorming. The other bonus is that as both are considered as gambling activities, they are not subject to income tax in the UK.
I figure earning money from those sources will alleviate some of the pressure I have on my shoulders from trying to make money in trading FX and other financial markets.
My decision was based on a recent string of conversations with a number of people that I respect as friends and as professionals in the trading and professional betting industries. I discussed my plans with them and they all thought it was a smart tactical move.
Free advice to aspiring traders from my experience – please let me share my lessons from the school of hard knocks:
(I have blogged about some of these bits before – see these post here for starters):
- Trade small and protect your trading capital – One thing that saved me is that all this time I have been trading small – at most I have been risking £250 a trade, but a lot of the time it has been less – £100, £50, £150. So I still have plenty of trading capital – even after splashing out for three years of living costs in central London.
- Plan transition to full-time trading carefully – what I did was, as what project management theory refers to, a plunge implementation. My advice: don’t do that.
- Recognise that you are most likely underestimating the time/energy/motivation that it takes in order to become a successful trader. Again, read my article on Trade2Win for details.
- Don’t do it alone – get into a trading office or trading arcade, work with other traders, get a coach/mentor, go to trader meet-ups and networking events (if your city has them), make contacts and friends in the online trading community (Trade2Win and EliteTrader are good places to start).
- Test, Test & test – and test again. There are plenty of blog posts on testing right here on this blog.
NOTE: THIS BLOG WILL BE CONTINUED TO BE UPDATED WITH NEW BLOG POSTS AS REGULARLY AS BEFORE