Best Forex Brokers
Best CFD Brokers
Best Stock Brokers
Best Crypto Brokers
Social Trading Brokers
Spread Betting Brokers
Questions & Answers
How can one become a full-time day trader?
There are many folks trading in their spare time for some extra income and inevitably one question they have is how they can transition into a full-time day trader. Naturally there’s no single answer, and there may be as many answers as there are people asking the question. There are some similar considerations everyone should take into account when thinking about taking the leap into full-time day trading.
The first and most important consideration in becoming a full-time trader is that you need to love trading. If you do, then look into the following additional considerations:
When you become a full-time trader you’re leaving the security of your regular job and paycheck. That means you need a financial plan. You need a solid budget, and you need to have capital to trade and capital to cover your expenses. If you can put aside two years of living expenses, that’s ideal. When you aren’t worried about trading to buy food, you’re in a much better frame of mind.
Do you have enough? Reading books isn’t experience. Paper trading isn’t experience. Trading with real money is where you get experience and most people need that to get a true feel for the markets and their trading style.
Before you consider trading full-time you should already trade consistentlyso you have a realistic idea of what you’ll be facing in the future. Consistency isn’t just trading every day. It’s following your trading strategy and money management rules consistently. That’s how full-time traders make money regularly.
One of the most dangerous aspects of trading is your own emotions, particularly fear and greed. Many traders revert to emotions when things aren’t working as planned, but emotions have no place in the markets. If you forego your rational decision making you’re asking for trouble. If you meet all the above considerations, you might be ready to step into the shoes of a full-time trader. It will be one of the most challenging things you’ll ever do, but if done well it can also be one of the most rewarding decisions you’ll ever make.