When to know if it’s time to quit...

Trading is often about how to take the appropriate risk without exposing yourself to very human flaws.
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stueytrader
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Interesting that this post has not directly been about the question posed, which was when to know if it's time to quit.

Instead, it's been about how to help discipline, including strategies such as reducing stakes.

Both of the above issues are interesting, and also partly related of course.

My own take: I think it's important to ask the first question (is it time to quit?) at some points in any trader's career/life - I know I have done quite a few times (in the darker times for sure). But, amazingly, I still haven't, and I'm very glad I never did, having now reached something of a successful consistency and contentment generally with where I'm at with trading. Choosing to quit (or not) is a serious question though, so maybe it still deserves a better discussion here!

The other question about discipline is of course wide, and oft-discussed. I'd like to comment on the suggestion about reducing stakes. One concern I have had with that in the past is that reducing too heavily can make trading feel meaningless. That is also a dangerous state, that can flick someone into sudden jolts of increasing stakes etc, and we all know how that can end on a bad day.

Just a few thoughts I wanted to add, please feel free to comment on them.
Stu.
stueytrader
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Kai wrote:
Tue Mar 30, 2021 4:55 pm
zippus wrote:
Sun Mar 28, 2021 11:10 pm
Now I’m not a greedy man. But I realise my corporate life will come to an end one day and am looking for something to do that will provide a reasonable income from home in the future. However, I have to accept that I’m rubbish at this.

I’ve given myself this year to try to address the above, so any thoughts would be welcome.
I see trading as a long-term project and a long-term investment, you're practically building a highly paid skillset that can potentially open many doors so it shouldn't happen overnight, it's very rare that you'll see some reward in the very short-term.

You may see eventual benefits from undertaking this journey even if you're not profitable in the end, but this obviously can't pay your bills. Not only is success not guaranteed here, it's unlikely as well, not for you personally but for every aspiring trader because of the nature of these ever-evolving markets.

"Looking for something to do that will provide a reasonable income from home in the future" may not exactly be the right motive if I'm perfectly honest, you may need more than that.
Great points about motivations Kai, agree with all of that.
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Kai
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stueytrader wrote:
Tue May 04, 2021 6:58 pm
Just a few thoughts I wanted to add, please feel free to comment on them.
I guess for most people time to quit is when the reward doesn't match the effort invested, after a reasonably prolonged period obviously.

But if it's a passion project, then you never quit your passion unless it's somehow destructive. You could maybe find other passions to fill that void but trading is rather unique in that aspect.

And if you're doing reasonably well to start with, then no point in quitting if best is yet to come, it would be like cutting a big potential winner short.

As a trader you're supposed to only get better over time and with age, like a certain alcoholic beverage :)
stueytrader
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Kai wrote:
Tue May 04, 2021 10:07 pm

I guess for most people time to quit is when the reward doesn't match the effort invested, after a reasonably prolonged period obviously.

And if you're doing reasonably well to start with, then no point in quitting if best is yet to come, it would be like cutting a big potential winner short.
Two good ways to define this question I suppose (or maybe the answer). The issue of how long to endure poor performance is tricky, as many struggle for a relatively long time before actually starting to be successful in this game. Maybe even most do?

So persistence is actually advisable even when you are not achieving - but it should be added to by 'change' IMO. Doing the same thing and hoping for a different result is of course a known failing pattern to avoid. You need to persist while it's difficult, but also change at the same time during this process.
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Kai
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stueytrader wrote:
Wed May 05, 2021 3:29 pm
Kai wrote:
Tue May 04, 2021 10:07 pm

I guess for most people time to quit is when the reward doesn't match the effort invested, after a reasonably prolonged period obviously.

And if you're doing reasonably well to start with, then no point in quitting if best is yet to come, it would be like cutting a big potential winner short.
Two good ways to define this question I suppose (or maybe the answer). The issue of how long to endure poor performance is tricky, as many struggle for a relatively long time before actually starting to be successful in this game. Maybe even most do?

So persistence is actually advisable even when you are not achieving - but it should be added to by 'change' IMO. Doing the same thing and hoping for a different result is of course a known failing pattern to avoid. You need to persist while it's difficult, but also change at the same time during this process.
Very difficult to generalize as it depends on too many factors, but from my interactions with other traders etc off the top of my head I would perhaps say the average length is about 2-3 years for someone to become consistently profitable. But the average quitting time is far far lower from what I have seen.

Needless to say Stuey, there's a big discrepancy between the two.
stueytrader
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Joined: Tue Dec 15, 2015 6:47 pm

Kai wrote:
Wed May 05, 2021 4:14 pm

Very difficult to generalize as it depends on too many factors, but from my interactions with other traders etc off the top of my head I would perhaps say the average length is about 2-3 years for someone to become consistently profitable. But the average quitting time is far far lower from what I have seen.

Needless to say Stuey, there's a big discrepancy between the two.
Yes, agreed - I'm sure many give up long before they reach the chance to get successful consistently. That's life, as hoping for a future goal is not enough for many in real world terms. But, if you do hang on long enough, and get to the good times, it's worth it.
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