How I Became a Full-Time Trader from "A complete trading system in your hands: A guide to trading an hour a day"
My notes on Dr. Mansi video series.
Notes:
I have spent the past two years researching swing trading, a method I consider to be the optimal balance between effort and gains. My journey began with Kristjan Qullamaggie, a legend in the trading world, who introduced me to one of his esteemed teachers, Pradeep Bonde. Within this influential group, I discovered Dr. Mansi, whose ability to simplify and articulate complex trading systems stands out as exceptionally clear and insightful.
I spent a lot of time looking at the details and ended up with over 70 pages of Dr. Mansi's explanations. I've simplified it since then. As a joke, I wrote it as a book and asked Dr. Mansi if I could put it online. So here it is:
How I Became a Full-Time Trader.
“... it's like eating glass and staring into the abyss. If you are wired to do it, then only do it, not otherwise.” - Elon Musk
Dr. Mansi shares her trading journey from being a part-time trader to a full-time trader after a decade of experience. She differentiates between hobby and real traders, with the latter taking trading seriously to make money, investing significant time and effort into learning and tracking their results. Dr. Mansi outlines two criteria for transitioning to full-time trading: having a positive expectancy, which indicates a proven business model for consistent profits, and having five years' worth of living expenses saved to trade without desperation. She emphasizes the importance of realistic expectations for returns and highlights a full-time trader's challenging and sometimes lonely lifestyle. Ultimately, she advises aspiring traders to pursue full-time trading only if they have a genuine passion and desire.
Criteria to be a full-time trader.
*AW = average win. AL = Average losses. Expr = Expected return, expectancy. PWT =percentage of winning trades. RR = risk reward ratio (AW/AL)
It took Dr. Mansi 10 years to become a full-time trader. For eight of those years, she was a part-time trader.
What is realistic?
You could be flat or lose in bear markets that can last an average of 3 years.
Returns
5-10% drawdowns in choppy market and bear markets.
100% return in a new bull market.
20% - 30% return in late-stage bull markets.
Lifestyle:
Hard work
Daily scanning, prep, on the desk at 8:30 am
No paid vacation days
No paid sick leave
No health insurance
No maternity/paternity leave
Working alone. LONELINESS.
Working from home
Friends and family won't understand
No colleagues
Unglamorous
Trading v/s a job & hard work
Are you a REAL trader?
If this post didn’t dissuade you from trading yet, you’d need a broker:
How I set up my trading like a business + Brokerage account from "A complete trading system in your hands: A guide to trading an hour a day"
Notes: I have spent the past two years researching swing trading, a method I consider to be the optimal balance between effort and gains. My journey began with Kristjan Qullamaggie, a legend in the trading world, who introduced me to one of his esteemed teachers, Pradeep Bonde. Within this influential group, I discovered Dr. Mansi, whose ability to simpl…