Trading For A Living - Part 2

Written by Geoff Turnbull


In part 1 of this article I started to look atrepparttar financial implications of giving uprepparttar 112376 day job to instead start trading full time for a living. There are more than just monetary considerations as we will see later, but for now, there are some more costs to ponder.

More Costs!

Let’s move on to equipment. Presumably you already have a PC and internet connection by virtue ofrepparttar 112377 fact you are reading this onrepparttar 112378 internet. But are these both up torepparttar 112379 job of trading full time? Againrepparttar 112380 specifications for both hardware and ISP will depend largely on your trading style, but if you’re relying on a 100Mhz Pentium II and a dial up service, you’re setting yourself up for failure. So budget for quality equipment, budget to keep it up to spec, and budget for some repairs too – expectrepparttar 112381 unexpected. Many traders makerepparttar 112382 mistake of saying “This will do me whilst I start out, and I’ll get something better when I make some real money”. This is quite simply false economy, you are unlikely to ever make real money with a substandard setup (and this applies equally to substandard software and data feeds). This is a cut-throat business and 95% fail, you must give yourself every advantage you can. You wouldn’t enterrepparttar 112383 Indy 500 in a go-kart withrepparttar 112384 intention of buying a better car when you’ve won a few races, andrepparttar 112385 same thing applies here.

Earnings

When you’ve added this all together, you have a pretty good picture of how much money you need to generate from your trading in order to live. Does your past performance suggest you will be able to meet this target? It’s tempting to say “When I go full time I’ll make much more”, but how do you know this isrepparttar 112386 case? Perhaps you can take a couple of weeks holiday and try it out – if you don’t make enough in that two weeks then you’re not ready. A few weeks really isn’t enough time to know if you’re going to succeed though. An ideal next step then is to cut your day job hours to part time and trade maybe two or three days a week. This way you know you have some money coming in, you get to trade for real, and if it all goes horribly wrong you are probably better placed to get back into full time employment than someone who quitrepparttar 112387 working world completely.

The option of part time work is a luxury many of us don’t have however. So does it have to be all or nothing – trade or work? Why not keeprepparttar 112388 day job and trade outside your working hours as well. If you are trading and end of day strategy, then this is easily achieved by doing your research inrepparttar 112389 evening and placingrepparttar 112390 appropriate combinations of Stop and Limit orders with your broker. For day traders, certainly practising is easier if your intended market is not your home market, for example if you want to traderepparttar 112391 US and you live inrepparttar 112392 UK where you can come home and paper trade inrepparttar 112393 evening. There are other try before you buy options open torepparttar 112394 day traders who want to practise trading their home market outside of normal hours though. eSignal allows you to download tick data for any symbol and play it back in real time or speeded up so you could traderepparttar 112395 whole day in an hour. Other vendors have similar offerings, and if you have an IB account you can use AutoTrader to record tick data duringrepparttar 112396 day for playback into a demo version of SierraCharts or QuoteTracker for free.

Globalize to Survive

Written by William Cate


Globalize to Survive By William Cate Published September 2004 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Civilization inrepparttar 21st century is in serious trouble. Modern economic models that manipulaterepparttar 112375 public's perception ofrepparttar 112376 economy's stability aren't working as well as they have inrepparttar 112377 past. The cost of repairingrepparttar 112378 environment is beyondrepparttar 112379 financial and technical means of governments to do. Population is growing while resources are diminishing. Demand for a Western lifestyle is almost universal, while civilization's ability to meet that demand doesn't exist. The result will be social upheaval, political instability and economic uncertainty. The individual will be sacrificed torepparttar 112380 needs ofrepparttar 112381 government bureaucracy.

As an individual, your civil rights are subject torepparttar 112382 whim of your government. Most people preferrepparttar 112383 illusion of security above personal freedom. Thus, most citizens are willing to give up their rights inrepparttar 112384 belief that it offers them greater protection againstrepparttar 112385 forces arrayed against their government. You can see it inrepparttar 112386 fact that it tookrepparttar 112387 American Government about six weeks to repealrepparttar 112388 Bill of Rights afterrepparttar 112389 attack onrepparttar 112390 World Trade Center. The Russian Government plans to give its citizensrepparttar 112391 rights they had during czarist times, thanks torepparttar 112392 Breslan School siege.

Governments tax their citizens to pay to maintainrepparttar 112393 illusion of national security and economic wellbeing. Duringrepparttar 112394 Roman Empire,repparttar 112395 income tax rate varied from 1% to 3%. Fromrepparttar 112396 Dark Ages torepparttar 112397 Renaissance,repparttar 112398 income tax rate was usually 20%. In modern times,repparttar 112399 income tax rate averages about 50% of your income. History teaches us that no government or civilization will survive over time. Whatever you are buying with your taxes, it isn't long term security for your family and descendants.

Business investment is risk. Governments expect their citizens to bearrepparttar 112400 full risk of creating local employment. If you succeed, you pay local taxes. If you fail, you are broke. However, those same governments will share your risk when you aren't a citizen ofrepparttar 112401 country. The government won't tax your profits.

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use