For most people that are searching for a way out of their boring 9-5 life, the thought of trading for a living seems like a fantasy job. The good news is that becoming a self employed full time Trader is completely possible if a person is willing to take the time to learn how the markets works (not just rush in), put in the effort to stay one head a step of the competition (other traders) and be able to deal with the realities of becoming a full time trader. Traders are a unique group of people, and although trading for a living can provide the financial freedom that many people are searching for, it can also have some challenges as well. I wanted to list some of the biggest ones so you will be able to have realistic expectations. So many people think they can start trading with a few hundred bucks, spend 10 minutes a week, and become millionaires. The whole trading industry is at fault here for lying about the fact that this is actually true. This truth this is a fallacy and I want you to be fully aware of what it takes to be a full time trader.
You Have To Put In The Time:
Before placing every trade you have to understand the probabilities that are involved. Trading is like a game of chess. You need to think several steps ahead and know what the potential outcomes are. There’s always going to be unknowns, as is the case with any sort of probabilistic situation, but a trader can greatly increase their chance of success by calculating each outcome and have a defined plan. It’s just basic math, but it really can make or break you as a trader. Successfully trading is not a fly by the seat of your pants endeavor as most people think. You aren’t shooting from the hip but instead acting like a sniper, choosing the perfect time to take the shot and finish your prey off before they know what hit them.
Failure Is Required To Succeed In Trading:
If you meet a trader who says they have never made a mistake, failed or lost money, chances are they are lying to you. You will fail, make a mistakes and take loses, no matter how hard you work. At times it will be painful to stomach, particularly if you are using trading as your main source of income. You need to be prepared to handle this reality, take it in stride, learn from your mistakes and move on. It would be great if you could start trading on day one with $500 and a week later have $50,000, $500,000, or even $5 million. The reality is that this is near impossible no matter what the guru’s will try to make you believe. The amount of money you can earn is directly tied to the size of your account. In the beginning you will see small profits of a few hundred or a few thousand and over time, as you progress and your account size increases, so will the size of your profits. If you make it as a trader the sky really is the limit so in my opinion it’s worth it to take a chance.
You Have To Become Disciplined:
If you aren’t a disciplined person you won’t make it in trading. This is the truth… You can have the best trading system in the world but if you don’t stick to the signals, it’s basically useless. This means you also need the discipline to cut your losing trades quickly before the destroy all of your profitable trades. You must also be disciplined enough to sit down at your computer each day, put in the time and do the research that you need to be prepared. If you are lazy you won’t make it as a trader, I can guarantee you this. Remember you are your own boss as an independent trader. If you are a person that needs somebody else to boss you around in order to get your work done, trading probably is not for you.
Follow The Market Each And Every Day:
In order to commit to a job as a full time trader you must be willing able to commit to a traders schedule. This requires keeping track of any open positions, how the overall market is trading, and any potential setups. The market is constantly changing so you should always be paying attention to what is going on. This is time consuming but it’s completely necessary because you will never be able to make it as a trader if you can’t follow the overall “market pulse”. The good news is that you will be spending time doing something that you enjoy doing, rather than pushing papers for your ungrateful boss. In my opinion, I would much rather spend each and every day focused on doing something I love which will pay me nicely, rather than working in a cubicle for 40+ hours a week and be barely able to pay my bills.
It’s Unlikely That You Will Immediately Make Money:
In the beginning you are very unlikely to make enough money as a trader to live full time. This is because trading has a learning curve. It’s going to take at least a short period of time in most cases so you need to accept the fact that learning to trade takes some time (despite what the guru’s claim). The saying “Earn while you learn” is not realistic for most people unless they are starting out with a bullet proof trading system like this and even then it will require at least a couple months. If you plan to trade full time you need to save up enough money and be able to cover your expenses as your get your trading business going. The more money you can start with, the greater the chance of success provided you have a solid trading system and a bullet proof trading plan already in place. The reason so many people fail as traders is because they underestimate what they are getting themselves into.
You Will Not Have The Free Time You Imagined:
Although you will certainly have more flexibility with your schedule as a trader, you won’t have all the free time you imagined, especially in the beginning. Becoming a full time trader takes hours of work each day. You must remember that although you can set your own schedule, going on vacation any time you want, and trade from anywhere in the world, you only get paid when you are trading, and therefore you have spend time. If you think you can work 15 minutes a day and earn six figures think again. While some days you could be in and out of the market in the first 5 minutes with a huge profit, sometimes more than the average person earns in a month or even a year, this is not the norm, especially in the beginning. You will need to spend time in front of the computer, and be prepared at all times. While trading for a living has its challenges and is far from a traditional way of earning a living, it is an awesome way for the right people with the proper mindset, to become financially successful while doing a job that they love to do.
Now keep in mind you don’t have to immediately start out of as a full time trader. I actually suggest that you DON’T do this. The main reason is you need to see if trading is right for you before you make a such a huge potentially life changing decision. Once you have started to learn and see a bit of success, then you can decide if you are cut out for a career as a full time trader. Some people are not cut out for trading and they belong working 9-5 jobs but remember if you don’t give this a shot and get started, you have no chance to ever be successful.
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