Conditions for Quitting Job to Trade Stocks Full-Time

The prerequisites for quitting your job, having no other income, and trading stocks full-time.

1. Your realized net profit must exceed your total income over the next ten years, including salary, bonuses, stock gains, and raises.
Net profit, mind you—this means money actually in your pocket after closing positions, not unrealized paper gains. No, not paper gains.

If you haven't locked in profits or seen the money hit your account, it doesn't count as earnings.

2. Your total principal invested must not exceed five years' worth of income. You can't have achieved this in just a year or a month; it has to be evident three years later, and averaged out.
Capping your principal ensures we can evaluate your future annual returns.

High variance looks like this:

Total principal equivalent to five years' income. After year one, it jumps to fifteen years. After year two, it drops to seven and a half years. After year three, it's back up to fifteen years.

You're essentially tripling your money in year one, losing half in year two, and doubling again in year three. This roller-coaster volatility is unacceptable.

Low variance looks like this:

Total principal equivalent to five years' income. After year one, it grows to seven years. After year two, it reaches ten years. After year three, it climbs to fifteen years.

This shows your annualized return consistently hovers around 45% for three consecutive years, indicating you've mastered certain techniques and patterns.
Combined with the safety net of knowing your net profit covers the next decade of salary and bonuses, resigning to trade full-time becomes a viable option.

Whether in a bull, bear, or sideways market, you earn fixed-percentage profits with almost no volatility—almost like collecting a paycheck.
Only when you approach this standard is it advisable to make the switch.