Making A Full Time Living in Financial Trading

March 13, 2019

The primary goal of a full-time financial trader is to be able to earn income through trading alone. Most people invest their time in trading because of the freedom, independence and the possibility of earning a massive amount of Money working from home. Ask yourself how this reflects the reality of professional, full-time trading? What should the main things be a trader considering when ditching their day-job to trade? There are a few secrets that are discussed which pose a significant challenge when looking to become a full-time trader. It is imperative to treat full-time trading with the utmost professional and not romanticize the undertaking.

This post sketches aspect that one should ponder before dropping their day job to trade full time.

Capitalize Full-Time Trading.

The first aspect you think about in full-time trading is the feature of capitalization. Do you have adequate capital to start trading? Is your current financial status stable to support your quest to full-time trading? Will your trading account let you live solely on trading alone for your recurring expenses?

Don’t quit your job ambitiously only to find out later that you can’t make enough money from your profits to survive as a full-time trader. A smart trader with a firm grip on their emotional states and the ability to execute trade risk measures when the financial conditions demand more can earn full-time living trading. However, most traders who hastily move into trading full time with little to the inadequate capitalized account may easily succumb to the pressure of having to make consistent profits to cater to their bills. Undercapitalized full time traders are prone to overtrading, lower quality trades setups, ramping up the risk craving for more substantial anticipated gains that genuinely reduce their success levels.

Such a trader should trade part-time, and if possible, plug back the profits to gradually increase their trading capital to a point where the trader would not feel edged to dip into their trading account during bad trading periods.

Trade with enough capital to survive at least three months of poor trading occasions that won’t create a significant impact on your livelihood. After trading for a while and thinking of going full time, you will understand the timing and frequency of the market and be sure to factor periods in before quitting our day job.

Understand The Market Well Enough.

There are several markets you can trade full-time, and knowing the profitability cycle of a particular market will stem from the trader’s own understating of the market. The primary consideration for full-time trading includes forex trading, stock trading, CFD trading, and gold & silver trading. After a few months of trading, it will be easier to anticipate market moves and trends. Being able to understand the trading rhythms of the market are very critical and allow the trader to practice emotional control. A trader needs disciplined enough to see their capital account through a stringent market condition without the anxiety of “missing out.’ By all means, a trader should know their precise market like the back of your hand before attempting to move full-time for a living.

What Is The Best Method? Know Your Method Well Enough.

Full-time trading requires a reliable trading method with potential consistent results all year round. Note that a trader will always look for a way to tweak the entry and exit criteria or even experiment with different trading methods. At the time you should consider adding or subtracting the elements that the method requires to make trading more favorable.

For example, a breakout trading strategist could review elements of a strong trending or sideways forex market to extract some gains from the typical exchange market. At the same, a higher time frame trader can easily experiment with the application of the methods on a lower time frame.

Full-time trading needs a trader when already knows the best methods and sufficient confidence to apply them each day to thread a consistent set of trading results.

The trader should continually invest time in research and development to further harness the skill and gain new market insight. Set up a separate demo account for this where you can trade with a proven trading method.

Do You Have Results To Show For It?

This a tough question often for traders looking to move full time. A trader gets excited with a few months of consistent trading results and often acquires more capital and jumps the gun to trade full-time without enough sample date to prove they can do it. This is common with newer traders, who assume that a limited period of good trading results can be expanded to a span over the long-term with a similar consistency. This is usually not the case as financial-market rhythms often change form range bound to swinging too long-term trending. Financial-market volatility and liquidity implications drastically vary from one period to another.

A trader needs confident which can only be achieved through data spread across multiple years.

Lifestyle Considerations

This an indirect consideration of financial trading, but the factor decides whether to move to a full-time trading career. Trading full time from home allows you to seepage from rush hour traffic and fuel cost, the freedom that comes from being your boss and having greater control over your lifestyle and other aspects such as family while earning a stable income. Full-time trading indeed offers excellent benefits which are why it’s exciting for everyone to consider trading. You will still find highly accomplished traders with proven trading acumen and methods that are adequately capitalized, but are yet to move into full-time trading. Depending on your likelihood you can choose the type of trading that best suit you.

The best approach is to honestly evaluate your skills, resources and lifestyle consideration to decide whether full-time trading is for you. However, note that this a decision that calls for a lot of responsibility and accountability. If you think you’re ready, then, it’s time to undertake trading full time which will be more exciting for you.

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