What is equity when trading in a career
He is well-acquainted with the tactful trading decisions that need to be taken in different situations of the market. If you are aspiring to be an equity trader, you should be well-aware of the key responsibilities that need to be handled by an equity trader which are as follows: To study and analyze the condition of the market and conduct a detailed research on the financial, social, and economic data and information To buy and sell the shares and securities by utilizing short term trading models which are automated To recommend ideas and suggestions in order to improve the present algorithms or help in the creation of new ones To design potential strategies related to trading and determine a course of action that needs to be taken To evaluate the risk involved and make appropriate decisions and prepare the relevant reports To constantly monitor and review the transactions to verify the accuracy and ensure that they are in conformance with the rules and regulations of the governing organizations They also help in developing the training curriculum and training the new members on the same.
They keep a track of the ongoing irregularities and fluctuations happening in the market and advise people accordingly on the most complicated purchase and sale of securities. They constantly strive to develop and improve profitability by facing the challenges of the increased competition.
They are responsible and accountable for predicting the future market trends and identifying the new trading opportunities to ensure the growth and profitability.
They should assist the trading team and guide them by giving ideas on long term trading. They should constantly maintain and research the market trends for better preparation and anticipation of the market.
Essential Skills An equity trader should be intelligent with strong analytical ability and good grasping of the market trends. He should be a creative thinker and should be able to take sound decisions confidently, even under pressure by taking into account the risk factors involved in it. He should have an entrepreneurial spirit and should carefully be able to strike a balance between patience, aggression and emotional stress. The most important skill is that he should have a strong interest in the financial market and should have a passion and desire to trade.
He should possess strong IT skills. Think of it this way. How many investments do you plan to make in a year? How many hours do you need to find those investments and keep up to date with latest information for those investments? Honestly, I think one will have plenty of time in hand if they quit the job and pursue full time investing unless one plans to do day trading. Went through SafalNiveshak link. It was very very helpful. Guess we are in the same boat! My 2 cent, riding a bull or bear requires that you wear a strong helmet.
If head is safe, one can come back even if bruised. Why to take hardship of no job and getting smacked in the ring read market too. At the end of the day life is about appropriate combination of happiness from different things. Passion, intelligence for markets are something very common these days so nothing unique to feel confident about. These emotions grow during the bull market.
Just imagine if you can take the same decision at the market trough or bear market. FYI, I was at similar juncture and then I put this question off by 5 yrs at least I kept getting a better job though. I am in similar situation as yours with same aspiration. From what I have read so far, I have concluded few things.
For myself, I do not consider portfolio value as correct measure. In bull market, we can get excess confidence by doing that. Instead, I try to calculate fair value of my portfolio approximates. Once we reach 30 X expenses with sufficient track record, experience and passion, we can use bucket strategy to avoid huge portfolio numbers like 50X and X.
For example, keeping X annual expenses in debt for medical emergencies. This can be supplemented by stock dividends. Having 25X expenses in equity after these safeguards is good enough in my opinion. Which will give portfolio time to grow or recover from bear market.
I have been following this path for last 6 years with current portfolio of 15X expenses. Hoping to reach the goal in next years. Its available in Amazon - https: Its about UK investors but the lessons are transferrable.
Based on their story, most of them left jobs only in late 30s or 40s after accumulating at least a decade of experience in investment and more importantly getting decent portfolio size to play with.
This is a very subjective questions and depends a lot on the mental makeup of a person as well. So I would suggest to think on these lines and prepare for years before making the plunge full time.
I rather would not had opened my mount on this —for the very reason that I was not able to answer this for myself in a very decisive manner at one juncture of life not long ago actually while going through a similar mental dilemma. Some sort of coincidence, read this interesting article on Mr. Sanjay Bakshi today morning itself.
Perhaps, in your disguise I may be communicating to myself. I respect others view point on this but to me, unfortunately the thought process like corpus of 20x or 15x of current earning may not help in taking a step forward. Fine that I suggest above not to think too logical, but in the practical word that we are into, things will not move an inch just by being very passionate about something.
Household has to keep going, family to be taken care of etc. If you feel that its getting to the stage of an itching, keeps you restless, occupies your mind space more than anything else around and last but not the least, if you can put everything on stake and be equally resolute even in the storm, than possibly this is THE THING you should pursue.
Once again, those are very much my personal opinion. Hope you take it in right spirit. Just imagine if yourself sitting in a room and enjoy your whole day without much interaction, reading reports, books etc.
In my view one need to be a little private person to adjust to it. Long term view is only which matters to you. At the moment your portfolio is small. How are you planning to add capital to grow? This will result in unrealistic expectation on returns and timing of returns from Equity. But over short to medium term equity may also give negative or low returns. I think you like myself are still a learning investor and would take lot more books and ARs to be read and companies analysed in detail before we can be confident of generating those kind of high return.
One word of caution I give myself is to give credit to your luck in investing journey. A lot of retail investors like us have made good returns in last years. Many investors would have made lot more. But going forward expecting those kind of returns may be little optimistic especially if we are still learning. So you can become a full time investor if you are not going to depend on your equity portfolio for income in the next years atleast and have a good backup plan to meet your expenses.
One good thing about investing is that you can still do it with your job. Most people on this board are probably doing it like that. I think your current employment would likely provide you enough time to pursue your interest in investing. At this stage in your learning curve, it appears you should be able to manage it well enough while also working. If not, it is too early.
Sometimes you dont need to make the choice, destiny makes it for you - this is what happened to me. After a 14 year corporate career, I found myself out of a job late last year. I have been investing in stocks since past years, but became particularly interested in value investing during past years, and was in a similar dilemma as you for some time before losing my job. I had a corpus of 4X annual expenses at that time. Well, after doing it for some time, here are some learnings:.
You need strong discipline to make it work. When you do investing full time, you have LOTS of time on your hands, which coupled with lack of discipline results in fooling around too much. Result - I got into day trading, and lost a bunch of money.
The lack of a steady income is deadly, not just mentally, but for your investment process because it freezes your investible capital.
I thought I had decent stock picking ability based on my past performance. Most of my investments were in blue chip stocks, and I had pocketed decent returns on many of them.