⚡️ Full Time Trading vs Corporate job ⚡️
A Mathematical investigation!
I see lot of fintwit debating over full time trading vs job. Let me dive deeper to this topic & present u some facts & figures over this issue.
A Thread🧵
#threadbytradersushma
1/11
A Mathematical investigation!
I see lot of fintwit debating over full time trading vs job. Let me dive deeper to this topic & present u some facts & figures over this issue.
A Thread🧵
#threadbytradersushma
1/11
2/11
Some assumptions before we go ahead ~
🔹50-30-20 rule of home budgeting followed here. It means 80% of your salary is expenditure while 20% is savings.
🔹The same expenses is assumed to have taken place when trading is pursued.
Some assumptions before we go ahead ~
🔹50-30-20 rule of home budgeting followed here. It means 80% of your salary is expenditure while 20% is savings.
🔹The same expenses is assumed to have taken place when trading is pursued.
3/11
🔹Profession switch takes place at 40 yrs age after fulfilling the following criteria.
🔹Profession switch takes place at 40 yrs age after fulfilling the following criteria.
4/11
So at the age of 40, suppose u have a decent package of Rs 12 lacs p.a. with annual increment of 10% p.a.
Meanwhile, your trading capital is 2X your annual package i.e. Rs 25 lacs around.
You have accumulated a net worth of Rs 75 lacs.
So at the age of 40, suppose u have a decent package of Rs 12 lacs p.a. with annual increment of 10% p.a.
Meanwhile, your trading capital is 2X your annual package i.e. Rs 25 lacs around.
You have accumulated a net worth of Rs 75 lacs.
5/11
Lets see your situation had u been working in a corporate job till age 60.
This is how much savings u would have accumulated at 60 years of age.
Around Rs 1.37 cr !
Savings rate remains constant @ 20% of your salary.
Lets see your situation had u been working in a corporate job till age 60.
This is how much savings u would have accumulated at 60 years of age.
Around Rs 1.37 cr !
Savings rate remains constant @ 20% of your salary.
6/11
Lets see what happens when u pursue trading FT assuming u r converging 4% monthly returns or 50% annual ROI.
(Savings is added to trading capital for next year).
At age 60 u have accumulated Rs 11.23 cr as savings while capital growing to approx Rs 24 cr.
Lets see what happens when u pursue trading FT assuming u r converging 4% monthly returns or 50% annual ROI.
(Savings is added to trading capital for next year).
At age 60 u have accumulated Rs 11.23 cr as savings while capital growing to approx Rs 24 cr.
7/11
Savings rate has increased gradually upto 95% of your annual income in 20th year of trading.
& this calculation doesn't end here 'coz there's no retirement in trading.
Savings rate has increased gradually upto 95% of your annual income in 20th year of trading.
& this calculation doesn't end here 'coz there's no retirement in trading.
8/11
While in job we consistently worry about our expenses 'coz they form a major part of our salary while in trading after some initial years, expenses constitute a nominal part of our income.
While in job we consistently worry about our expenses 'coz they form a major part of our salary while in trading after some initial years, expenses constitute a nominal part of our income.
9/11
In case u r struggling to decide upon the profession switch Maths comes to rescue.
Play lots of excel.
These calculations will make your work easier & your decision will be based upon a solid foundation of numbers & figures.
In case u r struggling to decide upon the profession switch Maths comes to rescue.
Play lots of excel.
These calculations will make your work easier & your decision will be based upon a solid foundation of numbers & figures.
10/11
Trading has always been a full time profession since long in developed nations. But it has to get its due recognition in our Indian society.
Its that u have do your due diligence to the same level for trading profession as u did while deciding upon your 1st career.
Trading has always been a full time profession since long in developed nations. But it has to get its due recognition in our Indian society.
Its that u have do your due diligence to the same level for trading profession as u did while deciding upon your 1st career.
That's all for this thread!
Hope u like it & if u did, retweet the 1st post of this thread to share this idea for wider reach.
Follow @tradersushma for more such trading & investing insights.
Thank u!
-----END-----
11/11
Hope u like it & if u did, retweet the 1st post of this thread to share this idea for wider reach.
Follow @tradersushma for more such trading & investing insights.
Thank u!
-----END-----
11/11
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