It’s never easy for someone to quit their full-time job and go away from a steady and secure income only to dive into something unknown and unstable. However, some people simply aren’t cut out to work for a company and are attracted to trading.
If you think the previous sentence applies to you and have been diligently working to become a successful trader, maybe now is the perfect time to say goodbye to your day job and dedicate all your time to trading.
Nevertheless, quitting your full-time job to focus on trading is something you have to think about carefully before making your final decision.
To make this process simpler for you, we’ll go over the top six signs you’re ready to become a full-time trader.
1. You’ve made some income to support you
When considering quitting a secure and comfortable job, one of the most important things you must pay attention to is whether you’ve made enough money to cover your living expenses for at least the next several months.
Being a full-time trader is always risky, but the period right after leaving your nine-to-five job is probably the most uncertain part. You can’t know how much money you’ll make, and it’s not uncommon for new traders to experience a few months of trading with no income at all until they get more experience, develop a strategy, and start making the right trades.
Therefore, our suggestion is to ensure you’re financially secure before you take a giant leap into the unknown or gradually phase out your other job if possible. For instance, consider taking remote or part-time job positions that’ll act as an additional source of income but won’t take as much of your time as a full-time position.
2. You’re experienced in the trading industry
Most people believe trading is an easy way to work from home and earn large amounts of money. Unfortunately for all traders out there, this couldn’t be farther from the truth. Many don’t make as much money as they would like since they lack the knowledge or experience.
No one becomes a full-time trader overnight. Most traders choose to spend their free time learning about trading and practicing it. Once you reach a certain level of experience and build a reasonably large account capable of supporting you, you can consider leaving your job behind and becoming a full-time trader.
3. You’re ready to expand your knowledge
Trading is a vast field, and every trader finds a specific trading niche they’re good at and passionate about sooner or later. Nevertheless, every trader must learn some basic concepts and even a few more advanced ones down the line if they are serious about training full-time.
That doesn’t mean individuals have to get a degree if they want to trade, though – simple trading courses are more than enough to get you started on the theory of trading.
Online courses and lectures are becoming increasingly popular, especially among younger generations, and there are some excellent courses and ebooks out there. Moreover, some traders simply choose to self-educate by getting the necessary material and going through it independently.
Whatever method of learning you choose, remember that the fundamental principles are the foundation for everything else. Even when you become more experienced and successful, expanding your trading knowledge, keeping up with the news and innovations, and revising what you already know is the key to becoming better and better.
4. You’re data-driven and analytical
Trading is filled with data, analytics, graphs, charts, and diagrams. Therefore, one of your most fundamental jobs as a trader is to keep track of all the data and analyze each change on the market with caution and care.
However, one thing is sure – that’s all easier said than done. Traders spend days, months, and years looking at various numbers and trying to develop the best possible strategies that will bring them profit.
Anyone stepping into trading full-time needs to be data-driven and analytical if they want to succeed.
The ability to see the big picture is another trait each trader must-have. It allows you to plan for long-term success rather than throwing caution to the wind every time a tempting opportunity presents itself.
It’s effortless to get lost in the numbers, lose track of your plan, and start chasing after trades regardless of the risk involved. Therefore, having an eye for detail and catching even the slightest changes in the market can make your business profitable.
5. You’re disciplined and patient
Besides being data-driven and analytical, full-time traders also have to be disciplined and patient.
Traders work for themselves – they don’t have a boss controlling their every move and following what they do during their workday. While that may feel incredibly liberating at first, traders need to be strict with themselves to avoid procrastination and emotional trading that often devolves into mere gambling.
It’s easy to get lost in this freedom and forget to do your research, especially if you’re working from home. To become more disciplined, consider removing all distractions from your work environment and creating a home office or renting office space once you become more profitable.
Just know that working in the trading industry won’t lead you to quick success when it comes to patience. You need to invest a lot of time and effort and even spend money on research and education so that you can one day become successful. That’s why it’s essential to remain patient and diligent after deciding to become a full-trader, as you’ll need some time to accomplish your career goals.
6. You’re ready to take some risk
Finally, you can’t be a trader if you’re not ready to make some sacrifices and take risks. As it can be an extremely unpredictable industry, there’s no way of knowing how much money you’ll make.
Even the best and most successful traders face losses from time to time, and it may take days or even weeks to recover from some bad trades.
If you plan on becoming a full-time trader, you have to be a risk-taker. Sometimes you’ll win, and sometimes you’ll lose. The sooner you accept this, the sooner you’ll start making better professional decisions.
Every trade will have some risks involved, some more than others, and that’s what risk management is for. You don’t want to adopt a gambler’s mentality and leave everything to luck, but you also don’t want to be so risk-averse that you miss out on great opportunities.
The bottom line
Many people dream about becoming full-time traders, even though they’re unaware of what it takes to become one. If you’re thinking about dedicating your professional life to trading, keep the points we’ve outlined above in mind. Now that you know whether you’re ready to become a full-time trader and what awaits you in the future, it’s time to make your next move.