Lifestyle of a Stock Trader

My transition to full-time trading was gradual. I was in the financial services industry (banker, stockbroker, financial planner) before becoming an independent contractor. That was a major gamble: giving up corporate security and a regular paycheck for the uncertainty of self-employment. But still: you get a call, quote the rate, get the assignment. You know how long it will take and how much you'll earn. If you work for multiple clients (as I did), you get your own version of job security: highly unlikely that all of them will fire you at the same time. You can grow the business by marketing during downtime.

Yet my real passion has always been stocks. For a while, I tried to balance consulting and trading - to the detriment of both. Then, in 2003, I finally took the plunge and started trading full time. The hardest part? Giving up the certainty of income for the uncertainty of gains. (What if you turn down a paid assignment and end up losing in the market? Double whammy!) Biggest regret? Not taking the plunge sooner.

Later on the tables turn: you look at the profits and think: all this time I wasted working for others when I could have been trading for myself!

Many people who consider trading for a living want upfront assurances. How much money they will make? Nobody can give them that. The right reason to trade is because you have passion for trading, not because you hate your job or want to make money. You need to believe in yourself. Spousal support is also important.

Most people have a bipolar vision of trading: on the one hand, they think it's risky; on the other hand - that it automatically affords one a glamorous lifestyle in the fast lane. Neither is correct. The amount of money you can make trading depends on your skill level and how hard you are willing to work. No shortcuts.

The more you trade, the more you realize that despite the risk, the market offers the best long-term security:

Nobody can take it away from you; nobody can fire you; you don't need anybody's permission to trade.

The market is driven by human emotions: fear, greed, hope, and doubt. Since human nature never changes, behavioral patterns of market participants repeat themselves, providing traders with an endless stream of opportunities.

But I digress. Fast forward to today.

I live in California. My day is built around trading hours: 6.30 am to 1.00 pm PST. But I don't have to be glued to the computer all day. In fact, the less I trade, the better I do. I do want to see the open, the 11 am action, and the close. The rest is optional. As long as I break the tasks into 20-30 min. segments, I can walk, exercise, run errands, shop, garden, etc. watching the market.

I can arrange the rest of the day any way I want. My only other tie down is when IBD comes out (around 7.00 pm PST). I take a break during the day so I can spend evenings doing research.

Trading is a job and a hobby. I spend most of my time reading, researching, and learning. You never know what you don't know. But here's the real kicker: I look forward to Mondays, particularly if my weekend research uncovers a couple of gems.

You truly are your own boss. You don't even have to talk to anybody (well, except your broker maybe). No need for a corporate wardrobe (shorts and T-shirts are just fine for trading in Southern California) or sitting for hours in freeway traffic (we plan our trips going against traffic).

The price of this freedom?

You must have the discipline to perform multiple daily and weekly tasks; and rely ONLY on yourself.

You are alone. In trading, it's you against the world.

You may close out a month with a loss. A month of hard work down the drain. Comes with the territory.