Full-time trader đź’ˇ

Full-time trader have an urge to trade full-time and ditch their job. While this can be something to strive for, there are also many advantages of having a consistent income while learning how to trade.

Many traders think of giving up their day jobs since they can make much more money trading. While the idea is nice to have, we understand that having a consistent, steady income might hinder learning how to trade correctly and eventually entirely quitting your job. We know, in the long run, it could pay off for you to take this route as a longer-term strategy, but keep in mind that you will also need to save up more money and sacrifice more time away from your loved ones if you choose to go that route early on.

What do you need before you should consider going full-time?

  • Two years consistent gains
  • 250k trading account
  • Limited liabilities (debt)
  • Two months of living expenses saved
  • What do you need before you consider going full-time with your venture? At least two years of consistent gains and roughly $225 thousand dollars in trading account balances. Limited liabilities are also paramount, while having adequate funds to carry yourself for at least two months after making the transition from part-time to self-employed is the final and determining factor.
Full-time trader

Stay focused and disciplined. You’ll know when you’re ready.

Overview

You can achieve success while working a full-time job. Before starting, it’s essential to find a trading style and strategy that meshes well with your daily work schedule. Some people have the ability to view the markets for most of the day, whereas others may have limited screen time to manage their positions actively. 

Styles of Trading

While there are many different trading strategies, most traders are day traders and swing traders. Finding the style that fits you will depend on your schedule availability to watch the markets and goals

1. Day Traders

Day traders are typically taking advantage of same-day opportunities, with trades lasting from a few minutes to a couple of days. Day trading may be best suited for individuals who have time to actively monitor charts/positions throughout the day or specific time periods (i.e., market open, market close, etc.).

Characteristics

  • Larger time commitment
  • Higher volume of trades
  • Can work well in any market condition
  • Actively monitor charts and positions
  • Requires quick decision making and a higher level of discipline

2. Swing Traders

Swing traders are focused on entering positions they intend to hold longer than a day and sometimes weeks or months. Swing trading may be better suited for individuals who don’t have time to monitor charts/positions actively throughout the day. 

Characteristics

Smaller time commitment 
Lower volume of trades
Can work better in trending markets
Passively monitor charts and positions.
Requires less decision making and uses less mental capital
Characteristics

3. Routine

Trading can demand a lot of time and focus, especially when you are just starting out. Therefore, when you are working a full-time job and trading. 

What your routine should consist of:

  • Review the charts for names on your watchlist
  • Identify the top 3-5 setups and create a trading plan for each.
  • Determine triggers, targets, and stop losses
  • Place these 3-5 tickers on a separate watchlist with strikes of interest.
  • Review market news and take notes of any upcoming events or catalysts that may impact the market or stock you are interested in trading 
  • Set alerts for critical levels of support and resistance so you can be notified when opportunities may be approaching 
  • Charting software such as Trendspider and trading view or brokerages can provide this type of functionality.

Pre-Trade Checklist

Before you enter into a trade, ask yourself these questions.

  • Does this trade fit within my style of trading?
  • Do I have a planned entry, targets, and stop-loss? 
  • Do I have time to manage this trade? 
  • Is this a reasonable risk to reward trade worth taking?
  • Is my position size for this trade within my risk management strategy?

Common Pitfalls to Avoid

  • Taking trades when you don’t have time or access to monitor the position
  • Not setting a stop loss and allowing a position to go to 0
  • Making careless decisions due to fear of missing out on an opportunity
  • Deviating from your strategy or style of trading due to FOMO
  • Having too many open positions to manage
  • Not trading with a size you are comfortable losing.
  • Taking trades for the sake of being active vs. taking high-quality businesses with a plan 

Being a full-time trader has many advantages over working 9-5

1. A full-time trader has flexibility:

  • Flexibility is probably the most attractive aspect of becoming a trader.
  • A 9-5 job involves fixed responsibilities and long working hours – a very traditional way of working.

As a trader, however, you are able to –

  • Take your time learning about the stock market; and
  • Trade and work as per your needs.
  • Whatever number of hours you work, whether it is 10 or 20, your working schedule is a reflection of your comfort level.
  • A 9-5 job involves fixed responsibilities and long working hours – a very traditional way of working.
  • Take your time learning about the stock market; and
  • Trade and work according to your needs.
  • Your entire work routine will depend on your comfort level instead of jobs, regardless of how many hours you put in.

2. Take charge of your own destiny:

  • Some people do not enjoy working in teams or taking orders from others.
  • A career in trading could be the right choice for you if you enjoy working alone or at your own pace.
  • A trader controls every aspect of his or her life, from the trades he or she makes to the money he or she earns.
  • As a stock market researcher, you can make your own research decisions and build your career at your own pace.
  • Additionally, you are able to master multiple skills and earn from them as well. 

3. Don’t stop learning:

  • We might feel that our job has a fixed scope and limited responsibilities, and that is why we feel we are held back by it.
  • Choosing to become a trader will change all of this.
  • Having a flexible schedule allows you to develop your skills to your liking and even freelance.
  • Traders can, therefore, also learn about the stock market in detail.

4. Money:

  • The salary is usually fixed, and it grows slowly as well.
  • Our salaries can also be affected by situations like a recession. We can remove this problem by trading.
  • It is well known that a stock market can provide us with enormous returns if we trade the right way.
  • We can also earn enough from a single trade with the right knowledge and a good strategy.
  • Getting good returns on a trade does not require you to spend nine hours a day.
  • To earn good returns on a trade, you do not need to spend nine hours a day on it.

3. The work-life balance of full-time traders is better:

  • All of the points we have discussed before boil down to one thing – a possible work-life balance.
  • You would probably find it difficult to answer the question,
  • We are constantly inundated with messages and tasks, so we might have to work beyond office hours.
  • As a result, many of us have less time to spend with our families, especially those of us who have our own.
  • However, you can create a good work-life balance if you work according to your needs and comfort.
  • Trading certainly has its disadvantages, but everything has its advantages and disadvantages, doesn’t it?
  • Indeed, there are many disadvantages associated with trading, but everything has its pros and cons, doesn’t it?
  • We can build a long-lasting and comfortable career as full-time traders by learning, mastering, and applying the right skills and strategies.

Key Takeaways

  • You can achieve success trading while working a full-time job.
  • While there are many different trading strategies, most traders are day traders and swing traders.
  • Day traders are typically taking advantage of same-day opportunities, with trades lasting from a few minutes to a couple of days.
  • Swing traders are focused on entering positions they intend to hold longer than a day and sometimes weeks or months.
  • Choose a trading style and strategy that meshes well with your work schedule, personality, and availability.
  • Avoid taking unnecessary risks or trades you can’t appropriately manage.

Conclusion

Choosing the best trading method is the first step. If you are primarily interested in trading from home, It would help if you decided what markets you would trade in according to your capital and interests. 

As a trader, you must make a comprehensive trading plan, which is also a business plan, as trading is now your business. You should also compare the products offered by different online brokers. You should also find a mentor. Finally, you are ready to trade.

FAQs

How does a full-time trader earn their living?

Traders buy and sell securities on the market; day traders usually enter and exit positions within a single day. Day trading can take place anywhere, but it is more common on stock exchanges and foreign exchange markets.

An average full-time trader makes how much money?

Trading can be a full-time career, a part-time opportunity, or a way to generate supplemental income. It is possible to trade from home; however, this option comes with high entry barriers since the minimum equity requirement for someone who is designated as a pattern day trader is $25,000.

Is Phemex a good day trading platform?

Cryptocurrency exchanges with a good reputation, security, trade volume, and liquidity are the best ones today trade Bitcoin or any other cryptocurrency. With Pemex, users can day trade cryptocurrencies with zero fees or perpetual contracts with up to 100x leverage.

Is it possible to live off-day trading?

Is day trading a viable source of income? The first thing to note is yes, it is perfectly possible to earn a living by day trading, 
It is, however, not always more accessible or less work than a regular day job. Since you are essentially your own boss, you can set your own working hours.

Is trading an excellent way to make money?

The stock market offers many opportunities for earning money. If you’re skilled enough and your strategies are in place, you can earn up to Rs 1 lakh per month.