Building Your Trading Support System

"You're out of your mind!"

Family and friends tend to have that reaction when you tell them you want to trade. After all, the markets have about the same reputation with most folks as gambling or politics. So your decision to play this dangerous game often provokes a panicked reaction.

How can you overcome their objections so they won't interfere with your ability to succeed?

First, you need to address the lack of security that goes with trading. If possible, have extra capital set aside that can be used exclusively for your new account. Then you can argue that the family fortune isn't being placed at risk. Alternatively, this lets you come clean and admit all the money in that account could be lost if you crash and burn.

Explain how much you love trading and why you need to do it to be a fulfilled individual. Of course, that argument will only get you so far. Family life revolves around security a lot more than affection or avocation. Your spouse wants you to be happy but also wants the bills to get paid on time.

Be sure to communicate that you've done your homework and understand the risks. Show them why you expect to succeed where others have failed. Find and offer statistics, anecdotes and success stories that support your argument. Be honest, but don't overwhelm them with information. And make sure to tell them exactly what you'll do if your plan fails.

Security System

The security issue extends to the lack of a paycheck if you want to do this full time. Remember that you're playing with fire if you go to your spouse without warning and say you're quitting your job so you can "live the dream." You might as well hire a divorce lawyer at the same time.

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Alan Farley is a professional trader and author of The Master Swing Trader. Farley also runs a Web site called HardRightEdge.com, an online resource for trading education, technical analysis and short-term investment strategies. At time of publication, Farley had no positions in equities mentioned in this column. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Farley appreciates your feedback and invites you to send it to [e-mail]. Also, click here to sign up for Farley's premium subscription product The Daily Swing Trade brought to you exclusively by TheStreet.com.

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