I’m going to keep this post brutally honest about my own journey. I started out by doing a trading course. Fortunately for me, this was actually quite good & the 2 traders that thought it were great to me. I would attend this course at night after my college during the day ( a law degree) I know, completely different.
When I came to the end of the course, the traders prepped me for an interview in a prop firm. Luckily for me, I got accepted and learned a ton in there and made great money
. I thought to myself after about a year in there. I’ll work from home, I’ve saved up cash and I won’t have to split any of my profits anymore. The prop firm I worked with had a profit share system whereby you traded their money and they gave you a percentage of whatever you made.
So I left the prop firm and went on my merry way. Right, 100% for me now, no profit sharing. I made 2 mistakes here. One, I didn’t give enough time trading full time before trading at home & 2, although I thought I had saved enough cash, I was wrong.
So the first 6 months at my home office, I’m actually making some good consistent returns and I’m thinking to myself, I need to start scaling this. You can see where this is going right ? One morning, I woke up to a truly horrible view.
A 40% unrealized loss in a stock I was holding.
It gapped on news overnight. Needless to say, I was absolutely devastated. I erased the entire 6 months in one overnight hold.
One smart thing I did which I’m thankful for is I just cut the loss, had I held and prayed, I’d be wiped out.
Let me be clear, I had gotten sloppy trading at home and this resulted in my loss, not some other excuse, it was solely down to me and my errors.
This leads me onto another issue when trading at home, you are accountable for your actions. Don’t get me wrong, when i traded in prop I was still accountable but if I got out of hand any day, the risk desk would cut your buying power, or cut you off completely that day if you were getting silly.
You’d also have a lot of explaining to do with the risk manager if you had been reckless.
You might think that trading at home would be easier but in my experience at the start, it was not at all easier.
I didn’t realize how important that risk manager was constantly hounding us to stay within our assigned risk levels. At home you really are your own boss and although this is great, if you are not careful, you may let things get out of hand as I did.
After that loss of -40% at home, I took a week off. My head was not in the right frame of mind. Self doubt, self hatred and starting to believe what my extended family were saying to me.
“You are doing nothing more than gambling”
We’ve probably all had someone say this to us when we tell them we’re traders but during this week, I remember just feeling like an absolute failure.
I dusted myself off after the lowest of lows and cut my trading size to a tenth of what I was doing.
I also swore I’d never break my rules again. Luckily for me, through strict discipline and absolute unbelievable adherence to risk management, I dug myself out of the hole slowly but surely.
After that, I’ve been consistently profitable for the last 7 years but it hasn’t been without many ups & downs along the way.
Working from home can be great but it can also be tough. You set your own hours, great. But imagine family members start visiting more often now that you are home, especially when you are in a stock position that needs your full attention.
These are things you need to take into account. You don’t want to upset your partner, child, dog or any loved ones when they want your attention.
Don’t blame them, they do not understand how much focus is required in this job. The point is no matter how low you are in life, there is always better times so do your best to focus on the positives. For me I believe:
Also, my obsession with trading at home caused me to become very reserved and closed off. No human interaction outside of family can have very bad affects on you. Trust me I know. These are just some things to consider if you want to trade from home and earn a living doing it. Hope you don’t find it too personal but I feel it needed to be explained to give a different perspective on it.
Best of luck in your trading and I hope you appreciate my honesty. If after reading this you want to get started yourself in the stock market, have a read of this article.