We all have dreams that we want to pursue. Usually it comes with a caveat that goes something like, “If I won the lotto I would…” Of course there are people who trade their full-time job. Brokers certainly make a living out of doing it in the forex markets. But what about you? What would it take to quit your job and be a full-time trader?
The majority of average folks don’t have the luxury of shirking their responsibilities to take time off and pursue their Lambo dreams. In an ideal world, we can do what we want, pursue any idea, and have no worries. But this is reality and we have to keep our feet on the ground, even if our head is in the clouds.
To be perfectly honest, the life of a full-time trader is not as easy or straightforward as people make it out to be. So, let’s go over what it takes, okay?
You can quit your job and be a full-time trader if…
…you can afford to
That’s right! If you can afford to pay your bills without your existing job then my all means. Most of us cannot afford to do that. Most people are paycheck to paycheck and losing the steady income to play the market seems like a huge risk.
The volatility of the market makes trading a difficult choice as a full-time career. Remember: Nothing guarantees that you will make it as a full-time trader in a short period of time. Even if you do everything right, the markets can turn on a dime. If you’re not vigilant, you could easily lose money.
A good buffer to trade full-time is if you have about six month’s salary in the bank to cover your expenses, PLUS the liquid funds that are earmarked for trading. You never want to dip into the household funds because then, not only do you risk losing your portfolio, you risk losing your house.
…you’ve got an investor, benefactor, or patient partner
Let’s just pretend that you’ve been trading successfully for a while and you’ve got the knack for finding excellent trades, it might be possible to transition into a full-time trader if you’ve got an investor who will pay you a percentage of the earnings. The other option is that you have a rich uncle squirreled away in your family tree somewhere.
Here’s the thing. Young investors who still live at home, have a golden opportunity to trade full-time and make serious cash because they don’t really have huge responsibilities. In essence, their parents are the benevolent benefactors of your crypto trading dreams.
Another option might be if you can cover the household expenses with a spouse or partner’s income while the money you saved can be used for this trading venture. But before you quit your job and trade with your retirement fund, be sure to have a serious conversation with your significant other. It could save your relationship.
…you have a savings and a good track record
This segment is for the “No guts, no glory” people. Sure, you’ve got savings and you’ve got enough faith in your trading skills to take the leap and risk it. By all means, go for it – but make sure you have an exit strategy and didn’t burn any bridges with your former job, just in case.
Without being arrogant or overly ambitious, really take a look at your trading history and see how successful you’ve been as a part-time trader. If you’re knowledgeable, consistent, and done the necessary research to make smart trading decisions with a string of significant profit over loss, then it might be realistic to take that leap.
Your trading strategy is going to be everything. This doesn’t mean trading full-time means you’re chained to your desk either. It’s having a full understanding of the trade tools that will help you on this journey.
…you have the patience and discipline
Patience and diligence to do the necessary work is what is required to be a successful trader, whether you’re part-time or full-time. Consistency and the ability to reassess is also needed.
A full-time trader has to be diverse in the analytics and the mindset. Strategy comes with knowing how far you can push the trade, and when you need to take a break. The last think you want to do is create bad trading habits which could risk your trading dreams and your current lifestyle.
The distractions and challenges that full-timers face are enormous. For starters, doing the same thing repeatedly gets dull really fast. If you’re working from home, the television, social media, laundry, family, and the refrigerator can all pull you away.
Patience, discipline and fortitude to analyze charts, watch the markets and hop on trading opportunities is not easy, especially if you’ve been doing it for a while. Unlike the nine-to-five job, you could find yourself glued to your desk if you are the workaholic type, or never at your desk, if you’re the easily distracted type.
Being the boss is easy – said NO ONE.
Last bit of advice
Perhaps you are still not sure if you have met the above qualifications, or you want to quit your job, but are not sure if you have to, here’s what you can do; take an extended leave from work or use vacation time to focus on trading. It gives you real world experience before you actually make the jump into full-time trading.
Seriously weigh your options at the end of your test period. Double check your finances and talk to those you answer to (family members). If everything seems aligned and you’re feeling confident, then go for it and best of luck to you.
Content provided by CryptoTraderNews is for informational purposes only, and should not be construed as legal, tax, investment, financial, or other advice. All information is of a general nature. As always, there is risk with any investment. In exchange for using our products and services, you agree not to hold CryptoTraderNews Pro, its affiliates, or any third party service provider liable for any possible claim for damages arising from decisions you make based on information made available to you through our services.