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  • Monday 8 August 2022

    When should you Trade Full time

    You're considering quitting your work to pursue trading full-time as a career, which is every trader's ambition because nobody represents freedom like someone who trades continuously. However, not everyone is suited for this level of independence, so how will you know when you're ready? I've been able to focus on a few topics based on my own expertise and relationships with other excellent traders.

    Must have Enough Trading Capital

    The amount of money you have is definitely one of the most important considerations when playing this game full-time.

    You need to have enough money in your account to generate monthly income of at least 7% that is greater than your full-time salary. Additionally, you need to have enough cash on hand to pay for regular expenses like rent, utilities, and food for the next year or so without having to consider perhaps withdrawing from your FX account.

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    You must be ready to have enough money to maintain your standard of living, be ok with the occasional account fluctuation, and be ready for losing streaks or significant drawdowns.

    Since it all relies on your unique situation and way of living, there is no specific amount you should have in order to go full-time. Speaking for myself as a nearly 19-year-old university student in England who lives away from home, I would prefer to have at least R350 000 in my trading account so that 7% a month is at least R25 000 and will grow if compounded, as well as at least R250 000 in the bank to spend on necessities that would last me at least the next two years or so.

    This gives me ample time to get a solid job and start being paid well if I realize halfway through that I am not making the best profits from trading full-time.

    For the past two years, you've consistently generated profits each month

    Data from your trading notebook must show that you have been able to consistently turn a profit each month for the past two years. Of course, there can be the occasional lost month, but on average, you should be making 8–10% profits on your investment each month.

    Throwing your work clothes in the closet and trading continuously does not imply that you will become any more skilled in making trading choices than you were when you were trading part-time.

    The concept of trading full-time should generally be put on hold if you are aware that you are not yet consistently producing monthly gains because your chances of success as a full-time trader will most certainly drop.

    You have other obligations that will keep you from trading.

    Depending on the type of trader you are, I don't think trading has to be "full time," where you sit at your computer all day and execute innumerable trades.

    Swing trading, in my opinion, is the ideal kind of trading since it gives you time to catch the following market full swing. To avoid staring at the charts while the trade is open, I believe having a job or some other duty is a good idea.

    Sitting at your desk all the time could result in overtrading, and we all know what that usually means.

    Because of this, you need absolutely have something else to do during the day if you intend to quit your full-time job to pursue trading full-time. This something else might be anything!

    This could involve anything, such as being in charge of dropping off and picking up the kids from school, preparing meals for the family, cleaning the house, etc. anything that can divert your attention.

    You're Really Passionate About Trading

    You must be honest with yourself about why you're making the risky decision to devote all of your time to trading. Do you genuinely think this is what you excel at and that it has advanced to the point where it is paying you significantly more than your job? Or are you merely looking to earn a fast buck?

    You must critically and honestly evaluate your abilities, and I advise you to resolve any internal conflicts before giving such notice.

    Consider carefully the effects of losing your income if you depend completely on it to pay your bills, your mortgage, or the tuition for your family. Have you been earning enough money—or even twice what you are paid—to be accountable for this? You definitely don't want to jeopardize your way of life or the welfare of your family.

    A lot of risks are involved when you quit your job and work full-time, not simply from a financial standpoint. Make sure you're prepared emotionally, financially, and psychologically before making a decision, and take your time.

    Sifiso Nkwanyana

    Author & Editor

    I hope you have recieved all the information you seek and thank you once more for browsing our website we hope to hear from you soon.


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