i think to be able to handle well the swings of full-time trading people need to look at the ratio of avg monthly return vs cost of living.


mine right now sits between 5-10x ratio. meaning for each month, on avg, I've been able to produce 5-10 months of expenses.
obviously these are figures from the past, and it's averages, some months are red, etc, and the idea that I'll maintain edge is always speculative.
there's periods where that 6 month average went negative but i think with the changes i've made since that period, that those periods should be shorter, but who knows.
keeping this gap between expenses and returns very wide, allows me to take risks that otherwise wouldn't be possible if I needed like half my return that month for rent or to pay the lease on a car.
a lot of people when they make a bit of money have the urge to upgrade their lifestyle. that's fine, everyone has different objectives, but that comes at a drag of risk taking and compounding effects.
this is quite comfortable to me, to live off of.
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