Follow These 4 RULES or DON'T Become Full-Time Trader!

Summary

In this special episode, PR Sund addresses the common query about quitting a job to become a full-time trader. He emphasizes the importance of having sufficient capital, knowledge, and a financial backup to sustain for at least six months to a year. Sund advises against leaving a job without considering the challenges and potential difficulties of re-entering the job market, especially in India. He also provides a mathematical perspective on the potential earnings from trading versus a professional job, suggesting that only if the trading income significantly exceeds the forsaken salary, should one consider becoming a full-time trader. He concludes by cautioning that trading is not suitable for everyone and encourages individuals to weigh their options carefully.

Takeaways

• 🤔 There is no one-size-fits-all answer to whether someone should quit their job to become a full-time trader, as it depends on individual circumstances.
• 💡 People often consider trading due to the perception of higher profitability or dissatisfaction with their current job.
• 🌱 The grass isn't always greener; trading comes with its own set of challenges and problems.
• 🔄 Switching back to a traditional job after a break in India can be difficult, unlike in some foreign countries where job-switching is more common.
• 💼 Before quitting, consider having sufficient capital, knowledge, and a financial buffer for at least 6 months to a year.
• 💰 Avoid having loans or ensure other sources of income to service them, as stock market returns are variable and not reliable for fixed expenses.
• 📈 A realistic expectation for returns on trading capital is around 30-40%, with higher returns being unlikely without exceptional circumstances.
• 📊 The decision to become a full-time trader should consider the potential difference in income compared to a professional job.
• 🏦 Part-time trading or leaving trading to a professional can be viable options without the need to quit a job.
• 📉 Trading is not for everyone, and many people who leave high-paying jobs to trade have ended up in worse situations.
• ⚠️ The speaker's advice is to continue the job unless one is confident and sure about the benefits of trading over their current salary.

Q & A

What is the main topic of the video script?

The main topic of the video script is the consideration of quitting one's job to become a full-time trader and the factors one should consider before making such a decision.

Why does the speaker suggest that there is no direct answer to whether someone should become a full-time trader?

The speaker suggests that there is no direct answer because it depends on various individual factors such as financial status, savings, expenses, and background, which are not known to the speaker.

What are the two main categories of people who typically ask about becoming a full-time trader?

The two main categories are those who believe trading is more lucrative than their current job and those who are fed up with their current job and believe trading could offer a better life.

What is the speaker's advice for someone who is considering leaving their job to become a full-time trader?

The speaker advises that one should have sufficient capital, knowledge, a financial backup for at least 6 months to a year, and no significant loans or other sources of income to service existing loans.

Why does the speaker mention that it might be difficult to return to a job after leaving for trading?

The speaker mentions that it might be difficult because job markets, especially in India, may not be as flexible as in foreign countries, and there could be a perception that someone who has been away from a job for a while is not as valuable.

What is the speaker's view on the potential returns from trading with a capital of 1 crore?

The speaker believes that with a capital of 1 crore, one could expect a decent return of maximum 30-40%, and anyone claiming to make more than that is likely not being truthful or is in a very exceptional position.

What is the mathematical comparison the speaker makes between trading full-time and leaving trading to a professional?

The speaker compares the potential earnings from trading full-time (40 lakh rupees) with the earnings from leaving trading to a professional (30 lakh rupees), highlighting the difference of 10 lakh rupees as a key factor in the decision.

Why does the speaker generally advise against quitting a job to become a full-time trader?

The speaker advises against it because when someone is unsure and asking for advice, it indicates a lack of confidence in their trading abilities, and the speaker believes it's safer to continue the job.

What alternative does the speaker suggest for those interested in trading but not ready to quit their job?

The speaker suggests part-time trading or leaving the trading to a professional, especially in long-term options which do not require daily attention.

What is the speaker's final piece of advice for people considering a full-time trading career?

The speaker's final advice is to talk to people who have left their jobs for trading, consider the potential loss of salary, and ensure that the potential gains from trading significantly outweigh the loss of a steady income.

Outlines

00:00

🤔 Should You Quit Your Job to Trade Full-Time?

PR Sund discusses the complexity of deciding whether to leave a job to become a full-time trader. He highlights the difficulty in providing a direct answer due to the varying financial situations and backgrounds of individuals. Sund explains that many people ask about this because they either think trading is more lucrative or are fed up with their current jobs. However, he warns that trading comes with its own set of problems and the decision should not be taken lightly. He emphasizes the importance of having sufficient capital, knowledge, a financial backup plan, and being debt-free before considering this transition.

05:02

📊 The Financial Realities of Trading Full-Time

Sund elaborates on the financial considerations of becoming a full-time trader. He argues that one needs a substantial capital, ideally around 1 crore INR, and should expect a return of about 30-40% per annum. He compares the potential earnings from full-time trading versus leaving the job to a professional trader and continuing one's job. Sund points out that part-time trading is also an option and stresses that the decision should be based on a clear understanding of the financial impact. He advises against quitting a job without being confident in the ability to consistently earn more through trading than the salary being given up.

Keywords

💡Full-time Trader

A full-time trader is an individual who devotes their primary working hours to trading financial instruments such as stocks, currencies, or commodities. In the video, the concept is central as the speaker discusses the considerations one should make before quitting their job to pursue trading full-time. The speaker emphasizes the need for sufficient capital, knowledge, and backup plans, highlighting the risks and challenges associated with this career path.

💡Financial Status

Financial status refers to an individual's economic condition, including their income, savings, and expenses. The video script mentions the importance of assessing one's financial status before considering a career change to trading, as it impacts the ability to sustain oneself and manage risks during periods of market volatility.

💡Sufficient Capital

Sufficient capital in the context of trading refers to having enough money set aside to invest in the market without jeopardizing one's financial stability. The speaker advises that anyone with less than one crore (a unit of currency in India) should not consider becoming a full-time trader, indicating the level of financial security needed to engage in this profession.

💡Knowledge

Knowledge, in the script, pertains to the understanding of trading strategies, market analysis, and financial instruments. The speaker stresses the necessity of having adequate knowledge before venturing into full-time trading, as it is crucial for making informed decisions and managing risks effectively.

💡Backup Plan

A backup plan is an alternative strategy or source of support to rely on if the primary plan fails. In the video, the speaker suggests having a backup plan, such as sufficient savings to cover at least 6 months to a year of living expenses, to ensure financial security in case trading does not go as planned.

💡Loans

Loans refer to borrowed money that must be repaid with interest. The script warns against having outstanding loans like housing or car loans when considering full-time trading, as the variable income from the market may not be reliable enough to consistently meet loan repayments.

💡Return on Investment (ROI)

Return on Investment (ROI) is the profit or loss derived from investing in a particular vehicle, divided by the initial amount of money invested. The video discusses the potential ROI from trading, suggesting a maximum expectation of 30-40%, and uses this metric to compare the benefits of trading versus maintaining a regular job.

💡Professional Management

Professional management refers to entrusting one's investments to a qualified individual or firm to manage on their behalf. The speaker contrasts the potential earnings from self-trading with those from having a professional manage the investments, highlighting the trade-offs between the two approaches.

💡Part-time Trading

Part-time trading is the practice of investing in the stock market or other financial markets without devoting full working hours to it. The video script suggests part-time trading as a viable alternative to full-time trading, especially for those who may not be ready to commit to the uncertainties of a full-time trading career.

💡Long-term Options

Long-term options are financial instruments that give the right, but not the obligation, to buy or sell an underlying asset at a set price on or before a future date. The speaker mentions long-term options as a type of investment that may not require constant attention, making it suitable for part-time traders or those with other professional commitments.

💡Forgoing Salary

Forgoing salary means giving up the regular income one would receive from employment. In the context of the video, the speaker explains that when considering a transition to full-time trading, one must account for the salary they are giving up and ensure that their trading profits can compensate for this loss of income.

Highlights

The speaker, PR Sund, addresses the common question of quitting a job to become a full-time trader.

There is no direct answer to whether one can become a full-time trader; it depends on individual circumstances.

People often think trading is more lucrative than their job, but this is not always the case.

Many who consider trading are fed up with their current job and believe trading will offer a better life.

The speaker warns that problems exist in every field, including trading, and it's not always greener on the other side.

In India, it's difficult to switch back to a job after leaving for trading, unlike in foreign countries.

Having sufficient capital, knowledge, and a backup plan are crucial for considering a full-time trading career.

The speaker advises against taking on loans while trading, as market returns are variable and not reliable for fixed expenses.

An example is given where a trader with 1 crore in capital might expect a maximum return of 30-40%.

The difference in income between a full-time trader and a professional job should be considered before making a decision.

Part-time trading can be an alternative to full-time trading, especially in long-term options which require less daily attention.

The speaker emphasizes the importance of being confident in one's trading abilities before quitting a job.

Many people who leave high-paying jobs for trading end up losing everything, illustrating the risks involved.

The speaker's advice is generally to continue one's job unless there is a significant advantage in switching to full-time trading.

The video aims to save people from the potential pitfalls of trading without proper preparation or understanding.

The speaker shares personal anecdotes about friends who left their jobs for trading and faced negative outcomes.

The video concludes by reiterating that trading is not suitable for everyone and should be approached with caution.

Transcripts

hi this is PR Sund welcome to the

special episode where I'm going to talk

about people who are thinking of

quitting their job to become a full-time

Trader many times many people come to my

timeline in Twitter and ask sir can I

become a full Trader and honestly tell

you there is no direct

answer somebody ask you on Twitter can I

become full-time

Trader right how can I say yes or no

assume that mukes Amani send his son to

gain experience you go on work then

tomorrow if he's coming and asking me

can I leave my job to uh come to trading

I will surely say yes but can we say yes

to everybody you know we do not know

their background so what is the backup

so what is our financial status what is

our savings what are their expenses so

without having a complete picture it's

going to be very difficult to say yes or

no now most of the people who ask this

question it belongs to two category one

they think that trading is more

lucrative than the job again I say they

think it's not that they know they think

that it is more lucrative and second

most of the people are fed up with their

job most of the people who are asking

this question is actually belonging to

this category category two that mean

they are fed up so they think that you

know they come to trading so they can

have a better life but to them I always

say land is always green on the other

side you go there then only you will

know what are the

problems and second most important thing

that these people forget and once you

leave your job you come to trading let

us say after 2 or 3 years you are fed up

with the trading you want to go back to

job it's going to be very very difficult

in foreign countries it's very common

people switch one job to another job

even after having few years break you

know they in fact totally enter into the

new field also but in India it's not

like that and I still remember I

attended uh an interview for a principal

post

in India you know the interviewers

agreed that I'm a good teacher but you

know they are not willing to hire me as

a principal so they want to hire me only

as a teacher so if I want to go back as

a teacher I could have continued in

Singapore itself where my salary was uh

uh nearly 10 times more than what I was

offered in India why I'm saying this you

know even in the related field also they

think that you know you are not really

good once it is very easy to leave the

job come to the trading but later it'll

be very difficult if you want to go back

to the job so that also you have to

consider okay now let us come to the

what are the important things if you

want an answer from me as yes okay

number one you should have a sufficient

Capital to trade and number two you

should have a sufficient knowledge to

trade and number three you should have

enough backup means you know if

something goes wrong in the market you

are not able to withdraw some money from

the market you should be able to survive

you know your family running expenses at

least for 6 months to one year expenses

you should have a buffer and number four

you should not be having any loans a

housing loan car loan those kind of

things or in case if you have you should

be having some other sources of income

to service those loans so you should not

be expecting stock market return returns

to uh support the your regular emis why

because your emis are constant whereas

your return from stock market is not

constant it's a variable so you cannot

create a fixed uh emis based on the

variable component of your income so if

these things are met so maybe why not

you can try but even before you are

trying that so let me give you some

mathematics behind this first so let us

say I'm just giving an example so let us

say your capital is 1C so one CR is a

capital anybody having less than one CR

capital I will never advise you to

become a full-time Trader even assuming

that you have one CR capital and you are

leaving your job and coming and

trading what is it you can expect a

decent return you can expect is maximum

30 40% person paranam I don't think that

anybody can make more money if you're

making more money than this then you are

not at the right place you should be

somewhere in the uh New York or you know

Hong Kong Singapore you know you must be

one of the top fund manager in the world

assume that you are making let us say

about 40% so that works out to be how

much 40 lakh rupees okay fine instead of

you are trading and getting 40 lakh

rupees assume that you are leaving this

job to a professional person maybe one

of your close friends who is a

professional in this field let us say he

delivers you 30% return it means let us

say he make he also makes 40% then he

keep 10 lakh Rupees so he pass it on to

you 30 lakh rupees so that means you are

doing as a full-time you are getting 40

lakh rupees and then you leave the job

to somebody you continue your job you're

going to get 30 lakh so what is the

difference the difference is 10 lakh

Rupees so now the question is you know

if your salary is much lower than the 10

lakh Rupees difference then it makes

sense for you to quit the job and if

your salary is more than 10 lakh Rupees

then why you have to lose that more than

10 lakh Rupees it will be profitable for

you if you uh continue the job leave the

job to professional again let us say you

don't want to leave the job to the

professional fine you don't have to be a

full-time Trader in order to trade in

stock market even part-time Trader also

can trade especially if you're trading

in long-term options it does not require

your attention on a day-to-day

basis so the same thing goes if you're

leaving the job coming and doing a

full-time suppose you are making 30 lakh

rupees instead of that you just trade

passively and you know without need of

your individual attention on a

day-to-day basis or minute by minute

basis is trade only in the long-term

options so assume that you getting 30

lakh rupees so then again the same thing

the difference is 10 lakh Rupees so does

it make sense for you to leave the job

so that is what is the mathematics is

all about so when you leave the job you

remember you are foregoing the salary

whether you leave the job to

professionals or when you do a part-time

okay so whatever you are getting so you

should be able to get that money plus

the salary you know that should be the

kind of return return you should be

getting if you are trading yourself into

the market the very first thing people

ask my advice uniformly I just say no

you know why if somebody who is very

very confident I'm just giving an

example one person is working as a

deputy manager in a bank okay he getting

a manager Post in another bank with a

double the salary do you think he is

going to ask me in the social media sir

can I go you know why because you are so

confident that so the new offer is far

far better than what you have on your

table now so the moment you are asking

sir can I become a full-time Trader that

means you know you are not confident you

are not sure so when you are not sure

why you have to do it so my simple

advice is that you know you continue

your job if you're are having so

everywhere problem are there don't think

only in your job you have a problem in

trading also there are problems right in

case if you think that the Investments

can be a parttime trading can also be a

parttime it need not be a fulltime or

you can leave the job to somebody

whether you doing parttime you're living

to somebody no and if you becoming a

full-time if you think that you can make

a bigger

impact than what you are losing on your

salary part so that is when you can

consider becoming full-time Trader many

people when I say no they think that I'm

trying to discourage them it's not that

I'm trying to discourage them I'm trying

to save them all right so talk to the

people who leave the job and I know many

of my friends also they left the high

paying jobs and now they are nowhere

here and in trading also they lost

everything and the worst thing is that I

have at least two or three friends who

left the job whatever the compensation

money they got everything they've lost

in this trading SO trading is not

everybody's cup of tea so hope you

enjoyed watching this video thank you

for

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watching