- Trading full time vs trading part time
- Full time trading has its challenges
- Should you trade full time?
- How I started trading full time
- Are you ready to start trading full time?
Trading full time vs trading part time
Full time traders are those that give all their hours in the day to trading and are not doing this along with a job or any other commitments.
On the other hand, part time traders are those that have other commitments along with their trading activities.
It could be college, a job, or even a business where you need to give the majority of your time and attention.
For a part time trader, trading might be like a secondary thing that’s being done to get additional income or just to build wealth. They might not necessarily depend on their trading income to pay the bills.
But for a full time trader, the profits made through trading will pay their bills and they take their trading activities quite seriously.
Now, I know you are considering going full time, but wait, there are some challenges that you might face if you are trading full time. You need to know this to make an informed decision.
Full time trading has its challenges
It might seem very appealing and cool that you live by a beach, trade, and live the life of your dreams. But this might not really be so.
I mean yes, if you go full time and actually do good, then your life will be better, but there will be some challenges you know.
With full time trading, comes full time trading stress. If you have been in this business for some time then you’ll know that trading is stressful and it will require you to be at your best at all times.
Now, if you were trading part time and thinking to go full time, then you should know that your work will increase.
Since you’ll have more time, you might have to spend it analyzing more, backtesting more, observing charts more.
All of these aren’t really challenges as such and it shouldn’t discourage you from going full time. I just wanted to give you a reality check, so that you know what you’re getting into.
Should you trade full time?
Now I’ll get to the main part of this blog post, should you leave your job or anything else that you do and start trading full time?
Well, this question is not as simple as a yes or no question and there are a couple of things that you’ll need to look at before you take the plunge.
1. Do you have some experience?
So look, if you haven’t spent any time learning or trading then you should not leave your job and start trading full time. It’ll be a very difficult journey for you then.
I’d say that you should spend a decent enough of time learning the skill, developing a strategy, having a plan to scale the strategy, and then only should you think of going full time.
If you are a complete beginner and you straight away get into this full time, then you’ll just waste time in learning that you could have done while you were working your job or whatever else you were doing.
So, if you’re working somewhere or are in college, then whenever you get time, educate yourself, get yourself ready, and then only think about full time trading.
2. Are you having some success with trading already?
Say that you are working and have also been educating yourself. I’m sure that you will have developed some strategy then and you will be trading it part time.
It’s fine even if it’s just demo trading and not live trading. What matters is that you have actually started applying all that you have learned.
Now, how is that going on for you? Are you seeing some success? Are you making money? Do you think this strategy is profitable enough to support you financially once you go full time?
These are practical and important questions you need to ask yourself and don’t take the plunge if you haven’t seen any success yet.
3. Are you prepared for the worst case scenario?
Say that you were trading part time along with your job and you’ve now gone full time. Let’s say that unfortunately, trading hasn’t been working out too well for you. Will this be a financial disaster for you? Will you be able to sustain yourself even if you are making losses?
Trading is a business right and we’re doing this to make money so that we can pay our bills and live life.
But what if money isn’t coming in from trading? Do you have enough savings or do you have any other income stream to cover your costs?
If no, then don’t trade full time. It’ll be a very challenging journey for you psychologically, and it’ll just mess everything up for you.
You will hear people say that you should have enough money saved up to pay your bills for one year, two years, or whatever.
Do what you are comfortable with and do not take any decision that you might regret later on.
How I started trading full time
So I’ll tell you my entire trading journey so that you know how things actually work.
I started learning about trading college and tried to get knowledge from everywhere. Tried out various strategies, some worked, some didn’t.
After college, I got a job and I was giving much of my time there. But I was also involved in trading part time and I was developing strategies, fine tuning them.
Finally, I reached a point where I was seeing consistent profits from trading and I decided to leave my job to get into this full time.
At every stage of my journey, I planned things beforehand and made sure that I did not take decisions that I’ll regret later on. That’s why I took my time, did not rush into things, and went full time only when I knew I was ready for it.
Are you ready to start trading full time?
I am confident that after reading this blog post, you’ll know what needs to be done to get to full time trading and that you’ll make an informed decision.
So, all that you’ve done in your trading journey as of now, is it enough for you to start trading full time?
If yes, then I wish you all the best and go get the pips. If not, then it’s totally fine. Take your time and you’ll get there eventually.
Don’t forget to share this blog post with others and also, let me know in the comments section below if you have any questions.