Should you quit your job to day trade ?
Hello folks, welcome to CCB. In today’s post I’ll be sharing my thoughts on whether quitting your job to day trade is right or wrong decision.
Well if you are planning to quit your job then a number of questions arise. The first question is whether you have different sources of income. If you want to make a living by day trading then the capital required to day trade and make sufficient income could be quite high. For example, if you invest 5 figure numbers, then the profit you make would be in three digits per day on the higher side. Well that’s what I made. So is that a good number ? Well if you are already making 4 digits per day from your day job the question is ‘Is it worth quitting the job ?’ Well the answer to this is you can make 4 digit profits per day but the capital required to day trade in such a situation would be in six digits. Also another thing to note here is, the markets are closed on weekends. So you only have 5 days to trade. Meanwhile if you are in a traditional job your salary would be on a monthly basis, so when you calculate per day income you usually include holidays too. So technically if you only take working days into consideration then the amount you should make per day by trading stocks gets even higher. Well those were the numbers. The next question is ‘Do you make money every trading day ?’ The chances are no for most cases. Another thing to take into consideration is losses and charges like brokerage, tax etc. well the net profit narrows down further isn’t it ? If that scared you, don’t worry, I’ll talk more good things about stocks in this post, so just read till the end.
The next question that arises is, do you have the trading knowledge that’s required to make money on every trading day ? If the answer is yes, then that’s a good sign and the decision to quit your current job and become a day trader is partially justified. If the answer to the aforementioned question is ’NO’, then girl you must take that into consideration before quitting your present job. The learning process is time consuming and if you are a beginner then quitting your job mayn’t be a good option.
The next question is ‘How long does it take to learn day trading ?’. Well if you are a quick learner you could learn it real quick and in terms of days I’d say maybe one year is quite sufficient to master the game. The next question is ‘What’s you age ?’ So boy if you just graduated from college, you are in a good position. You have time with you and you don’t have family burdens and monthly liabilities like the older people. On the other hand if you are old don’t worry, because you could learn it from the masters of the game but that’d cost some money. If you are willing to trade cash for knowledge then you could spend some cash to learn from the experiences of others and reduce the time in learning the game. Does that sound like a scam ? Oh girl that was just my suggestion you need not do the aforementioned. Moving back to dudes who are still young, my tip for you is get an internship at a place where they trade stocks. This would enhance your trading skills and you could get better at the game quite early in life and make good money with time.
Are you there ? If yes, congrats, there’s more coming. Is there a way to make money in the stock market without quitting your job ? The answer to that is yes and the solution to that is Swing Trading. How about holding a stock for a week and sell it at the end of the week, possible right ? And how’s that done ? Well, the answer is you could place your order during the after market hours and the orders will get executed the next trading day. To know more on how to swing trade you can checkout YouTube or wait for my course that’s coming soon. Still here ? Here’s some bonus info, if you are interested in trading stocks, checkout the following two YouTube channels,
◦ CA RACHANA RANADE
◦ PIVOT CALL
Is there another way to trade without quitting the job ? Well, if you are married and your better half is a home maker, then you could ask her / him to trade during the market hours and do the household chores prior to or after market hours. I highly suggest this method because if your better half knows how to trade you can make more money than investing in mutual funds. When it comes to me, my two month gross profit of 2021 is 12.4 % of my trading capital. If I just multiply it with 6 to calculate yearly returns then that’d be 74.4 %, which is quite good and far more than investing in traditional mutual funds.
Is there one more way to trade ? Well the answer to this is yes and this is how it could be done. Suppose you belong to a upper middle class family and have a source of recurring income without you having to do a day job then you could use a small chunk of that recurring income to fund your day trading journey. When I say recurring income I mean returns from real estate in the form of rent, returns from fixed deposit etc.
Well folks, that was it for this post. If you liked this please share it with your near and dear ones because that would benefit my blog and if my revenue from advertising increases then you could expect drop in price for my courses. See you next time with a different post, byeeee 🙂