Home Trading Strategies How To Become A Full-Time Trader (What You Must Know)

How To Become A Full-Time Trader (What You Must Know)

How To Become A Full-Time Trader (What You Must Know)

Hey hey what’s up my friend so in today’s episode I want to talk about how to become a full-time trader what you must know so first thing first number one as a trailer doesn’t matter whether you’re full-time trader bottom traders doing trade a position traded a trader you must have an H in the markets so what is an H or I let me give you an example it is an example that used many times imagine you have a coin every time the coin comes up heads you win two dollars every time the coin comes up tails you lose a dollar you know that a coin is a 50-50 chance of coming up heads or tails clearly if you have that special coin you have an H in that you know in that coin toss and it’s the same for trading you must have an H in the market because without an age it doesn’t matter what risk management you use it doesn’t matter how good your trading psychology is because we done it is you will lose consistently in the long run so first thing first as a fool as a full-time trader or as someone who wants to transition into full-time trading you must make sure that your trading methodology has an edge in the markets and some of you might be thinking I’m hearing that it’s easy to say man how do you find an age right so I’ve talked about this in the number of episodes right couple of ways someone make this your trading strategy there if possible back that’s it quantify it and see how that trading strategy performs right using historical data across different market environment Moo market and bear market etc if you don’t know how to back test you can always forward test it right do it on us on a demo account do it on a small life account and use that trading methodology and see how it fares in the live market environment but bottom line is is you must have an itch and also some traders have the misconception that you know I’m doing but I’m trading now and I’m not making money but if I do it full-time if I you know have more time to look at the markets I have more opportunities right I will be a profitable trader no it doesn’t work that way I’m sorry doesn’t work that way that’s like saying that you know you can’t run a full marathon but hey you know if I do 100-meter sprint right I would be able to make it doesn’t quite make sense right it’s the same for trading if you haven’t found success but I’m trading or trading off the higher time frame and if you think that you can find success by making a transition into full time training or lower timeframe trading then I’m sorry to burst your bubble doesn’t work that way number two as a full-time trader you want to have at least 12 months of living expenses covered and that’s excluding right your trading account the money in your trading account and the reason for this is that even though you’re a full-time trader you will not make money every single month that’s just the nature of this business unless you know you’re the type of trader who can take a thousand treats each day and you know you have a 52% win rate with a one-to-one reward ratio and Ed hey it’s possible to make money every day and even on one on every month but let’s face it right you don’t wanna take a thousand trades a day and even if you can take a thousand trades a day your commission will probably kill you those are the stuff that high-frequency trading high-frequency traders do right now CHF deforms that’s not your realm of you know trading niche so as a full-time trader when a trade off the fifteen minutes time frame the five minutes time frame trust me you will face losing months along the way and that’s why it’s important to set aside at least 12 months of living expenses so let’s say you’re in a drawdown right the market environment is not favorable to you doesn’t matter right you can go to three months in a way without making a time you can still survive because you have set aside money right to live on so that’s number two right set aside twelve months of living expenses right for yourself and I’m tree as a full-time trader I would say it pays right we have multiple source of income as well so just because you’re a full-time trader doesn’t mean that trading has to be your only source of income there are many full-time traders that I know who have books out there cause us out there who makes you know a recommendation to service that they believe in and have some side income besides their full-time trading gig and again that’s that’s a smart move because certain months they don’t make money hey you know at least you can pay your expenses using this site income very often so as a full-time trader don’t tow the fog alright the possibility that you can also an other source of income right besides from your trading and before if you’re doing the full-time trader if you’re a be a full-time trader then you must also have the right account size it it baffles me right now trader wants to treat full-time with $1,000 trading account I mean $1,000 trillion come to treat full-time that’s just that’s not you know realistic let’s say you make 50 percent a month it’s 500 or someone can you survive with final dollars a month I mean for most of us in most developing countries and developed countries 500 Ollis a month might be for developed countries is a stretch right for developing countries maybe yes maybe no but the other thing is that 50% of money that’s not sustainable in the long run so you’ve got to start with the right expectations in the right account size so how do you know what’s the right that wrong size for you again look through your historical records right if you are considering to make a transition to full-time trading or unitary full-time how much are you every gene per month 3% 4% 5% let’s say we take a hypothetical number of 5% a month so if a $10,000 trading account you make 5% a month it’s like $500 a month instead enough for you well if it’s not enough what most traders will do is that they take on more risk there is 20 30 percent on each trade and that’s suicide because it’s a matter of time before you blow up your trading account so don’t go down that route instead what you’ll do is to increase the size of your trading account maybe instead of a $10,000 account could you get 100k a company if you make 5% that’s $5,000 a month can you survive with that if that says yes then the next thing is to focus on building an account up to $100,000 may be true savings through your current job or whatsoever focus on building up the right account size instead of taking excessive risk which will eventually lead to your root ruin right so better in mind you must start off the right account size as well and finally as a full-time trader you must have a routine right full time trading is not about having a laptop trading by the beach or ice sipping a cup of pina colada knowing doesn’t work that way full-time trading is a serious business do you open your restaurant sometimes at 11:00 a.

m. sometimes you open your restaurant at 3:00 p.m. sometimes you don’t even open your restaurant for the day no your restaurant is a legitimate business you open maybe let’s see every day at 10:00 a.m.

and you close at 10:00 p.m. and it’s the same for your trading business your day in front of the markets before it opens and you leave right only when the market closes so have a routine let’s say you are a Forex trader you only trade a London session then be there half an hour before the London session opens to mock our levels identify yourself with the possible news release for the day and only leave right after the London session is over right when you have a fixed routine that’s where you will be able to exploit every opportunity that comes your way within your session within your time so if you start going you know relax aim you know chillin you know coming in and say when you want living and when you one then you’ll miss trading opportunities and when you miss trading opportunities you start doing funny things like you know chasing the market sorry they didn’t race that is outside of your trading point and these are all disaster right for your trading results so it’s important to have a routine and stick to it and when you stick your routine or you be more consistent with your actions and when your action is more consistent guess what you get more consistent results alright so that’s what it takes right to become a full-time trader so that’s it I wish you good luck in good trading you’ve enjoyed it smash the thumbs up button subscribe to the channel and I will talk to you soon you


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