During my Trading session most of traders I interact with want to become Full time trader, They want to ‘Make enough money to leave their job and become independent.’
Well it might sound exciting but the reality is not what it seems. Let me give you a blueprint what should be the thought process before you want to quit your job and take trading as a Full time Profession.
- Ask yourself why you want to leave the job.
- Are you just bored of your job.
- Not Getting a Good Salary
- Do you hate the boss or the Office Culture.
- Need to prove something to yourself.
- Have you considered the different business alternatives you would have with the same amount of capital you would need for trading.
- Make a matrix with each alternative weighing in on pros and cons.
- Consider what your daily life style will be like if you become an independent trader.
- Will you be sitting in your pajamas all day in front of your computer?
- How will your spouse react you being in House whole day.
- Will you be fine trading alone and no one to interact with as you do in Office.
- If you are Day Trader you do not have luxury of doing chit chatting as you do In office and enjoy the luxury of taking long lunch and snack break.
- You will have draw downs. Every professional trader goes through periods where they lose money. You should be aware of this and have plans how to deal with the period of draw downs.
- Important things you need to have before you take Full Time Trading
- You must eliminate all of your personal debt, “NO EMI”.
- You must be well capitalized Have alteast 2 year of expenses in Bank so that If you fail as trader your family do not Suffer,
- You must have a trading system which you truest on and traded for atleast 2-3 years
- You must follow strict money management rules.
Before you spend the time and energy to get prepared to make trading your primary means of income, you absolutely need to examine your deep motivations for making a change from the security of a monthly Salary to the uncertainties of an uneven income stream. Never expect to make the same amount of money to be made in trading, Only 1-2% of trader have a smooth equity curve that also come with at least 10-15 years of experience.
Do not start a trading business just because you want to quit your 9 to 5 job.
Do it because…
You love to trade !
I certainly do.