Follow These 4 RULES or DON'T Become Full-Time Trader!
Summary
TLDRIn 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
🤔 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.
📊 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.
Mindmap
Keywords
💡Full-time Trader
💡Financial Status
💡Sufficient Capital
💡Knowledge
💡Backup Plan
💡Loans
💡Return on Investment (ROI)
💡Professional Management
💡Part-time Trading
💡Long-term Options
💡Forgoing Salary
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
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