Can you quit your job for trading full-time? | Is Trading for Living a right choice?
Have you ever thought of leaving your job and start full-time trading? Is trading for a living a valid alternative as a profession? Can anyone survive by entirely depending on trading income? The majority of the people (especially jobholders) attract to #trading for a living because of its freedom. 99% of the jobholders hate their boss than their job, and they think that trading can be a source of regular monthly income. Well, Let me be very honest with you, There is a big difference between TRADING FOR LIVING and FULL-TIME TRADING. And they offer different package altogether.
So, what's the main difference here? "The trader entirely depends upon the trading income to pay his monthly bills in trading for a living. In contrast, the trader has multiple sources of income in full-time trading." I have left my 9-5 job by being a full-time trader in the Indian stock market. Does it mean that I depend entirely upon the trading to pay my monthly bills? Well, The answer is NO, I have various sources of incomes, and I have other businesses than trading, which can support my living. I often look at trading as a wealth-building tool for the long run. You are not going to be consistently profitable by just having that HOLY GRAIL trading strategy. There is much more you need to know and realize. About 70% of the time, it's a psychological aspect of a trader that matters the most to sustain and make a decent income in trading. The mindset has to be very strong if anyone wants to opt for trading for a living concept, as the trading outcome is entirely random and uncertain. SO, 𝙒𝙝𝙮 𝙩𝙧𝙖𝙙𝙞𝙣𝙜 𝙛𝙤𝙧 𝙖 𝙡𝙞𝙫𝙞𝙣𝙜 𝙞𝙨 𝙢𝙤𝙧𝙚 𝙘𝙝𝙖𝙡𝙡𝙚𝙣𝙜𝙞𝙣𝙜 𝙩𝙝𝙖𝙣 𝙛𝙪𝙡𝙡-𝙩𝙞𝙢𝙚 𝙩𝙧𝙖𝙙𝙞𝙣𝙜? The main reason is the uncertainty in trading income. You need to understand that the trading outcome is entirely random, and trading takes its own sweet time to show the results (Sometimes it can take a full year). The trader should execute a series of trades irrespective of the consecutive losses and drawdown phases.
Do you think that accepting this losing phase is that easy? Undoubtedly It's the most difficult phase to survive, and It takes years of efforts to understand these facts and align our minds in the probabilistic nature of trading. "NOT ACCEPTING THE RISK" is the main cause of all #traidng errors. Before you think about trading for a living concept and if you are thinking to leave your job by depending on trading income, you need to have the answer to these questions,
Are you free from all debts? Ideal answer: You must be free from all loans (Zero debt).
Are you prepared for two years of income without depending on trading? Ideal answer: You must have at least two years of survival/backup #money except for trading money (Separate trading money after backup fund) so that your present lifestyle won't be disturbed.
Are you profitable in trading at least for one year? Ideal answer: You must be profitable in trading for at least one year. If you aren't, then in the first place, work on being a profitable trader.
If you ask me the best way, then I would advise being a full-time trader where you have other sources of income to support your living. You can be a full-time trader by being in your present job. But wait, how can you handle trading by being in a full-time job?
Well, there are plenty of options to handle trading effectively by being on the job. And they are
A simple strategy with less frequency of trades (5-15 trades a month)
100% rule-based trading systems.
When you consider trading as a secondary source of income and hold long-term thinking, you can do wonders in trading. To give you an example, 80% of my students are job holders, and they are doing good in trading even after having their full-time job. It's time to conclude this blog. One can opt for trading for a living, but it comes with its own challenges, and the fact of the fact is that making money in trading is mere probability. Compare to the full time paying job, the odds of you making consistent income to make a living in trading is less. Hence the ideal way is to take trading as a secondary source of income and build wealth in the long run. One more thing, I am not trying to demotivate you, but I am trying to convey the facts here. Trading is not easy as analyzing the markets. It takes guts and luck to stay in this game. Well, I hope this blog helped you. If you like the content, hit the like button and share it with your trading friends.
If you have any questions, kindly post them in the comment :)
Happy Trading 😎
Wishing you most and more,
Twitter:https://buff.ly/39LmQqD | YouTube: https://buff.ly/36Ht2hD | Blog:https://buff.ly/33LZZYm | Book:https://buff.ly/2RR4UAU | Online Courses:https://buff.ly/2Kywmmm | Quora:https://buff.ly/3qrluY0