How Fast Can You Start Trading For a Living - 96
Welcome back. Do you remember a song I don't know, when it came out? It was I think it was in the 60s or 70s or something and it goes something like one is the loneliest number one is the loneliest. Now I apologize for my singing. And I think I was off key. And I don't even think that's how the music goes. The melody goes to the song sounds probably off on that too. And I don't even remember what they were singing about. But the message of the song to me is that yes, one is the loneliest number. I think it was about something that guy was alone, he lost his girlfriend. But the point is, for me is that yes, when you have only one of anything in your life, you don't really have a backup plan. Right? So if it comes to income, you only have one source of income. If you lose that source of income, you're kind of stuck up the creek without a paddle, right?
And so I was reminded of this today, I got an email from one of our members, and I wanted to read it to you, because he just got laid off. And he wants to know how he can replace his income with trading. It's crazy that we have so many people in this same situation, it's great that when you have a job, right, you have an income source, you want to get into trading, you don't really like the job or you really like your business or whatever you're like, oh, man, I wish this trading thing could work out, I could get it and you know, you you invest in one of our programs, and then you don't really follow through because life gets in the way. And I know how that goes. You know, it's really the why, right? You're why about trading wasn't strong enough until something happens. And he jars you away. You know, so you you might be driving along the street, you're not really paying attention to the road, and then all of a sudden the car comes out of nowhere almost hits you.
And after that you're like the best driver all the way home. You know, just jars you in. So this is a normal occurrence. But the older you get, or the longer you've been in a job, the chances of being laid off are increasing. Unfortunately, it's just the nature of the work ethic. And so you really need to have that backup in place. And unfortunately, for a lot of people, they're not ready with the backup plan when they get laid off. So here's Todd's email, says:
Hello, Allen, I'm going through a live change your opinion, I'm currently a member of your programs joined almost a year ago have not been able to devote enough time due to work and family obligations. (Totally understandable). I'm an engineer and work in the construction industry for a health care organization. I read your book, listen all your podcast sessions at least once while going to work. Oh, thank you for that. Last week, I was laid off from my job. And now I'm trying to decide my next moves. My wife works full time and we have funds to carry us along for a couple months. But I will need to replace my income fairly soon. and relieve the stress on my wife. As an aside, yes, that's very, very, very important. Because you're not, you know, when you get laid off, you're not the only one that's suffering, the whole family suffer, especially the other spouse, because that person has to carry the load, right? They're not used to carrying the full load. Now they have to carry the full load.
And then they also have to worry about you and your mental status and the pressure on them you also have to worry about so you don't want to add divorce to your problems. So be very, very careful about how your spouse is handling the situation. Make sure you give them enough time, enough attention to leave their pressure, take some of their work, you know their homework or whatever their work is off their plate while you can. And if you're looking to go into trading, discuss it with your spouse, explain what you're doing with them. So they don't think that you're just sitting at home doing nothing all day playing with computers, watching TV. Okay, so that's a really important point. So let me continue. He says I'm trying to decide if I should jump back into the construction rat race again, so I can draw salary and benefits, assuming I can find another job fairly quickly. Otherwise, I would really like to immerse my time into your programs and start trading. I realized I have to get up to speed and take some time to learn your methods and develop my own trading plan.
My main concerns are being able to learn your program soon enough, and being able to replace my income, I was making 120,000 a year, but need to replace approximately 5000 a month take home pay, I plan to start paper trading this week and scale up as I learn more eventually, I will have $250,000 in capital that I could scale up into an account, how realistic is it for me to replace my income? With the size of an account? I would appreciate your opinion in the comments. Thank you.
So that's the email, I want to read to you what I wrote to him, and then I want to give you my thoughts on this and a little bit going a little bit more detail. So I told him, you know, hey, I'm sorry that this happened to you very, very sorry, my first thought was, hey, you need to get out of where you are, I know where he is, he's in a different state where things might be slowing down. So I'm like, Hey, you know, get out of there, get your butt here to Texas, because we can't find enough people to do construction. But that might not be possible.
So I don't think the issue here is if you can generate 5000 from 250,000. The issue is how long it will take you to get there. And from what you wrote, this is me talking from what you wrote, it would be in your best interest, I believe, for you to get out of the job for now, as a fail safe. Okay, maybe not a full time thing, just something to bring in some guaranteed capital and keep the health insurance if possible, because that's a big concern for a lot of people.
Trading when you are super stressed out, and you have to win is super hard. Trading already is very hard. But doing it with one hand timing on your back, it's much harder, while you are looking for the second job or even after you get the part time job, spend three to five hours a day on your trading. Do that with the courses and programs you already have, you should be able to have the skills to do it full time in a few months. But having the skills is different from being emotionally ready. So you're going to have to overcome that aspect as well. So if you can start with a smaller goal, say 1000 a month on $100,000 account, that would be a great place to start.
And then you can scale it up from there. And then I told him because he's in the programs, I want to see you on the coaching call on Thursday, I want to see you and your paper trades in our groups, I want you to posting there, I want you to get critiques, I want you to get my opinion, my advice. And I want you to send me a bit I told him, Hey, I want you to send me your trading plan, and a concrete plan of how you expect to get to 5000 a month, including your asset allocation. And this is covered in whatever programs that he's already part of, you can do it. But having a job would relieve a lot of the pressure. But even with a job, 3-5 hours a day learning and trading. Because enough is enough screw these jobs, it's time to learn how to make it from trading.
Okay, so that was my email to him. You know, you can let me know if what you think if I gave him the right advice or not, really, this brought me back to my situation. And how I got involved in trading full time was also being laid off. And I eventually ended up losing over $40,000 of my wife's money before I got serious turned it around. And I don't know if you know my story, but pretty much that was my story in a nutshell. But really, I was doing all kinds of training and losing money at it.
Until really I sat down with my wife and we had like a, you know, come to Jesus moment and be like, Alright, I'm going to give myself three…