Day Trading Full Time
Just because you had some profitable trade doesn’t mean you should start day trading full time. Did you make money during the bull market? The market won’t be bullish all the time. There are times when the bear market comes, and if you don’t know how to trade in a bear market, then it could be a problem. But are you still looking to day trading full-time?
How to Become a Day Trader?
You should ideally already have some experience trading on the side. You will gain some crucial experience as a result. Additionally, you will be able to trade under various market conditions. Different trading strategies are required for multiple market circumstances. This is because it might be difficult to find trading opportunities when the market is flat and moves slowly. You should therefore be prepared to handle both environments.
Not many traders are prepared to engage in full-time trading. So how can you tell whether you’re ready to trade full-time?
1. You need savings
Any trader who takes their trading seriously needs a good amount of money to get started. You can either save up money for your capital, or you can join a prop firm where you get a big enough capital to start. You can easily join FundYourFX to get the capital to start your journey. The bigger the capital, the bigger the earnings. FundYourFX has 3 programs with different amounts of capital to choose from. The Starter with $6,000, Standard with $15,000, and Profesional with $30,000.
Other than a big capital, to become a full-time trader, you must quit your day job and your regular earnings. Trading does not provide assurances, in contrast to traditional employment. Please understand that trading does not offer a reliable source of income. Even if your trading earnings were enough to last you for two months, it would still be insufficient. Savings are necessary. This is because a trader might not be profitable all the time. There are times when it is losses after losses. That is when you need to be mentally and financially prepared.
2. You need knowledge
A high degree of knowledge is required to be a full-time trader; otherwise, your chances of long-term success are quite slim. You need to keep learning. Every loss is a chance to learn about your mistakes.
Your accurate and unbiased view of your trade is yet another important indicator. Do not mix skill with luck. In trading, you are not gambling. Your trading must have a long proven track record.
3. You need strategies
Full-time traders are aware that you cannot support yourself just on one good strategy. You need to have different equally competent strategies that would be suitable for different trading conditions in addition to a strategy that has shown to be profitable for you. Because market trends might change at any time. The market is always changing. So when it does, your profitable strategy might not be profitable anymore. This is a reason that you need more than just one good strategy.
4. You need experience
Trading on a live account creates challenges regarding trading psychology that you wouldn’t encounter while trading on a demo account.
You also need to have a pretty good understanding of your trading skills and weaknesses and, more importantly, you need to know how to stick to a trading strategy.
Before you start day trading full-time, be sure you’re mentally prepared to take real-money risks and keep improving your trading skills. It is best if you have been trading part-time for a long time.
5. You need passion
If trading is what motivates you to get up and get busy every morning, then go ahead and trade full time. You need to love what you do. There is no point in trading full-time when you don’t have the passion for doing it.
If you have doubts about day trading full-time, stick with trading part-time. Only switch when you are really confident. Making the switch to full-time trading is a journey. When they get to their destination, some people find it to be the best decision they have ever made, while others find it is not for them. The most crucial thing is that you enjoy and profit from experience, regardless of whether you finally decide to trade full-time or not.