You Want To Trade Full Time? Think About This
|May 23, 2018||Posted by Oddmund Grotte under daytrading, trading topics|
Once in a while I get an e-mail from readers asking for advice if they should go out on their own and start trading full time. But before you do that you have to ask yourself the following:
1. Are you currently consistently profitable? If not, why do you think it will be better if you work full time? Chances are it will only get worse. Why? Because you NEED to make money. You will overthink, second guess etc. And do you have any experience in trading? You need several years to learn. I have been trading for 17 years and I still learn something new every day.
2. Are you able to work completely on your own? Trading is a VERY lonely job.
3. Do you have good work ethics? You need to work very hard in this game. It’s about constantly evolving.
4. Are you disciplined? You need to have some rules one way or another.
5. Are you business minded? You have to treat it like a business.
6.. Do you know any successful traders? If so, can you learn from them? This is an invaluable asset. Two or more people always think better than one.
7. Do you have savings to live on? And do you want to risk your savings just to cover living expenses?
8. How big is your fixed costs? Do you live in for example New York or Singapore? Find a cheap place to live. If you have big overheads, it will stress you.
9. In order to make it worthwhile you need to make MORE than in a regular job, IMO. You lose relevant work experience by trading, and you get a gap in your CV. If you spend your best years from age 25 to 35 doing this with mediocre financial results, I would say you are wasting your time. You have to make good money to cover the lost opportunities.
10. Seriously consider getting a well paid job and invest in stocks for long-term appreciation while you are still young. The effect of compounding can make you a wealthy man by 50. The odds are simply much better. Of course, 50 years sound like light years ahead when you are 25, but time flies.
I started trading full-time back in 2001 when I was made redundant. I probably never would have tried this if not for my unemployment. Life is always like this: when one door closes, another one opens. I gave myself 2-3 years to see if I could make this worthwile.
The first two years I barely made money to buy my milk and bread, but admittededly I got a bit lucky and found some really good strategies that made me more or less financially independent during the next 5-6 years. I’m now investing full-time, both short term and long term strategies.