Friday, 28 October 2011
Laying the right foundation
Firstly, I was flattered that someone would ask me such a question. Whilst my living comes from trading sports, there are many who are more successful than I. But the question forced me to re-examine my own entry into this numerical world and ask myself if I would do it that way again. The short answer is - No ****ing way!
It would bore you to read how much time and money was spent blundering my way to profitability, suffice to say though, mine is a story not that dis-similar to many. The only real difference being a number of advantageous elements to my situation that allowed me to keep going, in order to reach the level I am at today.
On realising I was not really qualified to answer the question from personal experience, much of the evening was spent thinking of how, were it done again, would I do it differently. There are many smaller aspects to his answer which, in truth, should be absolute givens, so they won't be listed here but the fundamental aspects for me would be;
1) My part time/spare time trading profits would have to amount to more than my current salary, on a pro rata basis.
2) After working out all monthly outgoings, my bank account would have enough to cover 12 months of this figure.
3) My trading bank would be considerably reduced. If my trading is as good as I think and points 1&2 are in place, confidence and ability will ensure the bank grows safely and rapidly. If I got it wrong and my trading is not as good as I thought or hoped, I can begin again.
If you're reading the above and thinking "My current income won't allow me to do that", you're already answering the question. If your trading is at a high enough standard to be considering going full time, you will be able to achieve the above through your own trading profits. The old adages are the best.
Stonking day yesterday. Added 13% to the nag bank and 9% to the football bank. The Palermo game went as expected. Confidence in the game was such that I dutched the scores in it too, along with the low scores in the Espanyol game. Clean sweep.
It's a day off for this trader.
Whatever you trade, stay green.