Trader Story - #2

“Switching Job Strategy” to Fulltime Trader

Trader Background: Rob is an IT engineer who is looking for a career change. He got into trading Forex several years ago and has been bitten by the financial bug and wants to do this fulltime and quite his job. He is experiencing three common emotional challenges: First his trading is in a see-saw pattern of winning with good profits and than giving it all back. Second he going into overwhelmed with his obligations of family his current schedule and fitting trading in. Third he is so anxious to trade he is getting bored with his job, beginning to hate it and starting to “slacking off.”

Trading Situation: Emotions can run high when someone doesn’t enjoy their job any more and the lure of the markets and ultimate independence come knocking on the door. On top of that add shaky, inconsistent trading results and we have a formula for disaster.  I usually get the request for coaching after the trader has quit the job, and has run out of money to live on and their trading results are plummeting to new lows.   

Trader Story:

“I am not sure what to do as I think I’m going to be laid off from my job and it’s really OK because I want to trade for a living. I have done really well in the past year so I guess it will be OK if I do get laid off.  But recently I have been going down hill and losing more than I am making.” What should I do? Can you help me?  Rob

Coaching Feedback in color: T- Trader C- Coach

T- I am not sure what to do as I think I’m going to be laid off from my job and it’s really OK because I want to trade for a living. 

C- It’s very important especially in these economic times that should you desire to transition to trading full-time you are prepared and have a very specific PLAN!

I will detail the plan in steps at the end. For Rob the first thing he needs to do is keep his current job till he is financially ready to leave and he has developed certainty and security he can sustain himself.

T- I have done really well in the past year so I guess it will be OK if I do get laid off.

C- This is a “guess-timation” NOT reality and not the path to being a successful full-time trader. Rob needs to know he can make it financially or his emotions will consume him, this can have a direct impact on his trading results. All too often traders make the transition too fast and then they start “pushing” their trading because they have to pay the bills.  They increase size over trade and worst case their trading emotions skyrocket.

T - But recently I have been going down hill and losing more than I am making.” What should I do? Can you help me? 

C-     Inconsistent results does nothing but increase uncertainty mentally and results in bad trade decisions. So first creating a small goal can help and also implementing some new rules to protect the cash.

Let start with these few changes:

Steps to Freedom:

The Current Job

·        Do everything possible to stay employed at the current job until you can transition comfortably to full time trading

·        Determine what the real situation is:

o       there a lay-off pending and if so when? So your plan will take this into consideration

·        No lay-off – Keep the boss happy and ALWAYS work yto your ability 120% - never lower your standards as it only will hurt you in the long run

      Trading Full-time

·        Develop a detailed plan (suggestions below)

·        Get consistent in your profits

·        Create rules and distinctions to fine tune the strategy

·        Begin a saving plan for expenses

·        Start paying for yourself on a regular basis from the trading profits

·        Keep emotions in check – be happy at work knowing you are working towards a higher goal for yourself

Transition plan suggestions:

·        Create a list of expenses for the month

·        Be sure you are journaling your trading results

·        Determine how much you CAN make each week realistically (set this goal)

·        Once you have a track record of success then pay your self bi-weekly an amount that can cover a few of your expenses.

·        Increase the withdrawl amount monthly until you are paying for ALL expenses and have extra cash

·        With extra salary cash create a savings plan that will cover a minimum of 6 months to one year of your expenses

·        Be careful not to push your trading

·        Set strict stop loss rules

·        Stay disciplined

·        Go Slow

CD SPECIAL – Bonus – The “Sharpen Your Trading Performance” - CD is a perfect fit for this goal. If you call and mention this article I will give you $50 off the regular price as my way of helping you towards your freedom! So call today 702-616-3744, and lets get you going.