Transitioning To A Full-Time Trader
For years, I have struggled with the concept of full-time trading. Back in university I was keen on the idea, and I still am, the only thing is what that transition looks like.
Usually, people begin by trading part time i.e. when they can during their day or week. This means they don’t learn everything required as quickly as others who trade full-time. Approaching the early stages of your journey like this is understandable because people still want a safety net to fall back on. I know, I’ve been there.
Some traders do it this way so they can build up capital whilst they trade a small initial amount, there is absolutely nothing wrong with this! Every trader’s journey is different.
In this post, we will look at what it takes to go full time in this business. You need to understand that Forex trading should be treated as a business and not as a game. Because at the end of the month (or the quarter) you need to show results for yourself, your family, and possibly future investors.
Meaning every decision should be taken seriously, and every single trade should be used to learn and improve.
As a trader, you want to ensure that you can cover your monthly expenses, and eventually bring your dreams into reality. Provide financial freedom! But if trading is not taken seriously, these goals won’t be realized.
Know-how is the first requirement if you want to take the safest root in pursuing Forex trading full time. Hours of research, studying, and practice will ensure that you have the technical skill and understand the fundamentals of trading the Forex markets.
2. Structure your time
It is essential to set a schedule for yourself. What your day will look like when you are a full time trader? Because if you don’t, you will begin to find it boring. Sitting at your desk for the whole day doing nothing else but looking at charts.
However, when you have a plan in place with the best times for you to trade as well as a process to monitor and place trades, you can venture into other opportunities and perhaps find other means of improving your business.
Full-time trading means you have a trading plan. You are organized and understand what your day may look like. It means you know the risks and you what is required from you.
3. Trading strategy
You cannot trade successfully without a trading strategy that includes your entry criteria, exit rules, as well as your risk management limits.
People often debate whether you should only trade full-time when you are profitable or if you should just start and figure it out as you go. In my opinion, either is fine. Whatever makes you happiest. Just bear in mind both have their positives and negatives and you’ve got to carry that burden.
Resilience. It will take a lot of resilience to transition into full time trading, and it will require that you give it your all.
Burn your boats if you will and go for what you want, but there is not half in and half out, because that is the easiest and quickest way to be thrown out of the business.
So to go full-time – You have to focus on your journey, be resilient, and more so trust in your ability to produce the desired results by practicing your skill daily.
Happy trading Traders!