How to become a full-time trader? This question often arises in the minds of forex and stock traders. This is a very reasonable question because when a trader decides to learn to trade, many have dreams of becoming full-time traders.
Talking about full-time traders, maybe your first impression is that traders get their main income from trading forex, commodities, stocks, and others. Their daily needs are from the profit earned every month.
Actually, such thinking is not entirely true, because being a trader there will be facing difficult times, where traders may experience failure. So he must also take into account daily needs.
Because no matter how good a trader is, there will definitely be hard times, when market turmoil causes losses.
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- 1 Start from Newbie
- 2 Advantage and disadvantages forex trading
- 3 Can I become a full-time trader?
- 4 Is it possible to become a full-time trader?
- 4.1 How to become a full-time forex trader?
- 4.2 How to become a full-time trader in the stock market?
- 5 How long to become a full-time trader?
- 6 Full-time trader vs Part-time trader
- 7 How to become a part-time trader?
- 8 How to become a successful part-time forex trader?
- 9 Which best option full-time or part-time trader?
- 10 How to become a full-time trader Reddit
- 11 Full-time trader pros and cons
- 12 Final thought
Start from Newbie
All traders who may now have become full-time traders, depart from a newbie. There is no trader who directly becomes a full-time trader without passing through his time as a newbie trader.
Newbie is a time when traders are still vulnerable to dealing with risks if they are not careful when they learn to trade. Since many newbies are trapped by fantastic offers it is easy to profit from trading. But it was only when he had fallen into the trap that he realized that his move was a mistake.
That’s why a newbie is advised to learn to trade with a demo account because it is risk-free, but he can learn how to trade properly. Although this is not a good place to build trading psychology, if he is serious about learning, it will be a good weapon for the next step.
How long time in the demo account?
When interacting with fellow traders in the forex community forum, we will often encounter a statistic of 90% of traders fail and only about 5% become successful traders. 5% another still hard work how to become a profitable trader.
Another statistic says that almost all traders cannot maintain an account for more than six months. That means more traders face margin calls or stop out accounts before six months of trading. There may even be a new week of trading that has failed and lost money.
Therefore, how long to use a demo account, at least six months to be able to measure your skills. If during that period there are still many failures, it means that it is not ready to jump into a real account.
Practice demo trading for six months, just a suggestion as more traders fail before six months. However, each broker has its own rules regarding demo trading. Maybe it’s only allowed for a month, and after that, you have to re-register a new demo account.
Advantage and disadvantages forex trading
As with any business, forex trading has its own advantages and disadvantages. Here is only a summary of the advantages and disadvantages.
Advantage forex trading
- Trading forex can work from home, forex trading is not affected by the lockdown.
- Requires a small capital to start, it only needs a device, computer, and internet connection.
- You are free to choose your trading time because the market is open 24 hours 5 days a week, you can spend more time with your family.
- There are many options for trading instruments, depending on the broker as a service provider.
- It even allows trading using robots, but depending on the broker, there are brokers that prohibit scalping and robots.
Disadvantage forex trading
- High risk, traders may lose money in trading.
- Challenging trading, not everyone is suitable for forex trading.
- Requires in-depth knowledge of how to manage funds.
- High volatility carries the risk of uncertainty.
- Forex trading can cause stress, traders are always pursuing profit, but the risk always comes.
Can I become a full-time trader?
Typically, all traders can become full-time traders. But it all also depends on the expertise of each trader. A trader who always feels like a failure will find it difficult to become a full-time trader because the mindset that is formed in the mind is a failure.
Traders who become full-time traders, most of them have a good mindset and believe they can be successful in trading. Treat forex trading as a business and not just a currency trading game.
But besides that, they also have a business plan, make an investment portfolio. Some of them even take advantage of other talents to earn income apart from forex trading.
For example, they create a youtube channel and sharing how to trade with subscribers. If you have a lot of subscribers, monetizing videos with ads can provide income from YouTube.
Besides that, there are also those who become PAMM managers or become copy trading leaders. Traders who are proven to be profitable cause investors to choose them. It became mutually beneficial cooperation.
Is it possible to become a full-time trader?
Although trading forex and stocks is a risky business, it is possible to become a full-time trader. Maybe you don’t know many successful traders who became full-time traders such as Lo Kheng Hong, Rainer Teo, Larry L William, Steven A Cohen, John D Arnold, Paul Tudor Jones, Doni Salmanan, and other successful traders.
However, becoming a full-time trader is a decision that you must prepare carefully, especially if you are married. Because not everyone is able and has the skill to become a full-time trader. Because if you don’t have requirements, maybe that the decision to become a full-time trader can even result in a disaster for your life.
Behind the forex business, hidden the sad story of traders losing thousands of dollars in a short time. So don’t make your decision to become a full-time trader causing you to lose your house or property due to bankruptcy in trading.
How to become a full-time forex trader?
The decision to become a full-time trader puts you in charge of your own forex trading “business”. Capital preparation, controlling risk, deciding what assets to trade, keeping records and measuring performance, etc. If you fail to become a full-time trader, you are at risk.
If you decide to become a full-time trader, there are some tips that need your attention.
Manage forex trading like a business
Forex trading is a business that needs careful planning. This trading plan includes things such as short-term and long-term targets, the amount of capital you are ready to deposit, the strategy, risk management to be implemented, etc.
The plan must be specific and objective, not based on your ambition to get double profits instantly. The plan and implementation must also be recorded neatly so that it is easy for you to evaluate.
Utilized technology to increase profit opportunities
Technology has opened an open information space globally, you can use technology to find investment references that provide profitable opportunities.
Joining a community of traders and investors and communicating in forums can be your way of getting prospective investment business opportunities.
Mastering technical analysis
Technical analysis is basic knowledge in forex and stock trading, all traders who have become full-time traders must have mastered technical analysis.
A trader must know when to enter the market and when to exit the market. Because traders cannot buy and sell haphazardly, they must have a reason why to buy and why to exit. And it relates to technical analysis.
Prepare big capital
You must calculate your daily needs, and have a realistic profit target if in a month you can get an average profit of 10%. Household needs per month say $300, fund preparation at least $3K.
You also need to set aside a small portion of the profit as a capital reserve. or to invest in other profitable financial products.
Discipline in trading
Because full-time traders have used large funds, trading must be disciplined with trading plans and trading rules. You have to remember being a full-time trader is for the long term, discipline to manage risk is important continuously.
Psychologically and mentally you have to be strong
Trading days may not always be pleasant. Sometimes full-time traders experience losses and failures, without strong psychology can trigger depression or stress in the trader.
Trade with a trusted broker
This is a very important part for a full-time trader. Don’t let him fall into the trap of a fraudulent broker. Because if so, it’s in vain for you to work and make a profit from trading if your broker commits fraud.
How to become a full-time trader in the stock market?
Being a full-time stock trader is not much different from a full-time forex trader, you have to take into account your experience in making profits from stock trading.
Don’t be desperate to become a full-time stock trader without the slightest experience and knowledge, it will put you at risk.
The amount of capital you need must be large to be able to meet the daily needs of profitable trading. While the profit trading shares per month 5% is already very high. This means that the amount of your capital must be able to produce the number of your monthly needs.
How long to become a full-time trader?
To become a full-time trader, knowledge is the most important and not just luck in trading. Many traders in learning only rely on luck while they are eager to become full-time traders.
To master this knowledge, prospective full-time traders must learn literacy skills that cover all aspects of knowledge about forex and stock trading.
The time it takes really depends on each trader. Some only need six months and feel mentally ready, some take two years, some study five years, and so on.
The point is when you decide to become a full-time trader, during the learning process you must be able to consistently generate profits. Although you may have experienced a loss, the potential for profit is higher than the loss.
Full-time trader vs Part-time trader
The risk of forex trading is very high, higher than stock trading, this is due to the risk of dynamic forex volatility.
Becoming a full-time trader gives you the advantage of more time to trade. But the high risk makes traders think twice. So that some traders prefer to be part-time traders.
Here are some of the advantages and disadvantages of being a full time and part-time trader:
- Full-time traders allow round-the-clock trading, free to choose trading times. The part-time trader has limited time because he has another job, it is very difficult to concentrate on two jobs at the same time.
- The full-time trader has more time for his family, he can work from home. The part-time trader has limited time with family, he has other jobs outside the home.
- Full-time traders rely on earnings from trading profits for their daily needs. Part-time traders rely on earnings from jobs for daily needs, while trading results are investment assets.
How to become a part-time trader?
Basically what is needed to become a part-time trader is knowledge and experience. Most traders become part-time traders because they are reluctant to deal with high risks that cause chaos in family finances.
Therefore, many part-time traders act as investor traders rather than pure traders. They may prefer to invest with copy trading, PAMM systems, or find automated trading robots that handle their capital.
The advantage of being a part-time trader is that they are usually more comfortable psychologically. That’s because they do not rely on earnings from trading alone, rely more on earnings from their main job, which is more certain.
How to become a successful part-time forex trader?
This will only summarize how to become a successful part-time trader. Here is an important point that is a requirement and tips.
- Pick a trading time schedule that suits you. You have to spend time outside your main job.
- Make the most of your time. Your time is limited, use it carefully based on your trading knowledge and experience. If the market is not profitable, don’t force the trade.
- Keep a trade journal. This is useful for you to do an evaluation to see your trading performance against the results.
- Focus on the currency pairs you are familiar with. One currency pair is enough to provide gain if you master it.
- Make quick decisions. You have to focus on the market, when a trading signal appears, take the opportunity immediately. But you also have to dare to cut loss if it’s a false signal.
- Set reasonable targets. Do not set targets that are difficult to reach in one trade.
- Use stop loss and take profit. This is a convenient way to trade set and forget.
- Take advantage of online forums, this can increase your enthusiasm in carrying out trading activities. Because you are not alone even though you work alone.
Advantage and disadvantages part-time forex trader
Part-time traders are those who make forex trading just a side job. Here is a summary of the advantages and disadvantages of part-time traders.
Advantage part-time trader
- Psychologically you are more comfortable because you don’t feel chased by a target. Because you have the main source of income from your main job.
- Your risk is smaller. Although it is possible to get a loss in trading, it does not destroy your entire finances.
Disadvantage part-time trader
- Your time is limited because you have your main job obligations.
- You don’t always have the best time to trade. Because maybe when you are in your main job, the market is giving a good opportunity to enter the market.
Which best option full-time or part-time trader?
In the end, you may ask, which one is best to be a full-time or part-time trader?
The most polite answer is that it depends on your readiness to decide. If in your mind there is still concern about the risk of trading plus during your experience you still often lose. So being a part-time trader is much more relaxed than being a full-time trader.
But if you have a strong mentality, large capital, and your mindset is professional. Deciding to become a full-time trader will be an important decision in the history of your life.
But I personally prefer to be a part-time trader, because the risk is much lower than a full-time trader. However, those who are full-time traders may be more comfortable in that position. So the conclusion is that each trader has his own comfort zone in his decision.
How to become a full-time trader Reddit
Reddit is the largest community forum on a wide variety of business and trading topics. You can contribute to the Reddit community day trader to find answers to other members’ questions about how to become a full-time trader.
Full-time trader pros and cons
- You become your own boss, no one pushes the way you work.
- You can focus more on trading, because from there your main income.
- Be careful in observing market changes, you can monitor the market for more time.
- Find more trading opportunities. You have a long trading day.
- Your income depends on your trading profit. Not always do you make a profit, sometimes loss too?
- At the risk of high-stress levels, because you rely on the daily needs of profit, can make your mindset full of target pressure.
- Requires solid trading knowledge.
Before you dream of becoming a full-time trader, ask yourself are you really ready to become a full-time trader? Are you ready for the consequences of the risk?
Many people decide to become a full-time trader without careful consideration. They decide to become full-time traders just want to make easy profits. While shortcuts in forex trading never exist. As a result, what is obtained is not a profit, but a loss that consumes all trading capital.
Note, forex trading and stocks and crypto trading is a risky business, this article is only information and does not constitute investment advice, all risks are the responsibility of each investor or trader.
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