In this final 3-part installment where we go over emails and questions our full-time traders get asked the most (see parts 1 & 2) we address the transition from part-time trading to full-time trading and what it really takes.
When Should I Consider Trading Full-Time?
This question get’s asked a lot and usually it comes down to when should they consider walking into their boss’s office and saying “I resign”. We always follow up with our own questions and it usually highlights if they’re ready or not. See if you asked yourself these questions below as well in your thought process of trading for a living.
How many months have you been consistent?
Are you making more money trading than you do by a comfortable margin from your salary?
Have you traded in all environments and not just in low volatility complacent markets?
What do you have set aside to maintain your bills and standard of living without having to dip into your trading account right away? Is this sufficient you think?
Do you feel with more time to trade if you didn’t have a normal job would you trade more, less or the same?
We get a wide variety of answers but we tell them if they can’t answer these questions with a yes or detailed answer then most likely they’re not ready to go full time.
Trading full-time regardless how its perpetrated on Youtube or other media outlets is not a 5-hour work week and then it’s off to the beach with models or family. Trading for a living requires deep study before the week starts in finding what charts you’re going to trade, finding solid barriers to get into a trade, and then managing that trade until your final contract or share is out of the market.
We see no problem with people trading part-time for many years because trading is a business and it comes with other costs that will eventually have to be addressed. People think just because they’re making more money than their salary on a consistent basis they’re ready to transition over. With trading full time, there are new costs you have to pay which you didn’t need to as much when having a backstop employer.
You now have to pay your own healthcare, dental, vision, and your families. Was this factored into your trading salary calculation? If it wasn't then considering adding that to your “business expense” trade plan and see how your returns annually stack up. What happens if you have a few trading months that are down, is there a backstop in place to protect your living standards?
We’re not trying to discourage those who trade part-time to never go full-time. Trading is one of the few professions that offer freedom to wake up when you want and work when you want. But, more questions need to be addressed before making that transition that a few months of profitable trading won’t be able to answer.
This Friday we are hosting a webinar on this exact topic as one of our students who has a great career and flight benefits made 20K in February but he loves his job and still wants to trade part-time. No one but yourself can prepare you for the first day of full-time trading but it’s a good starting point to maybe listen to those who do it on a day-to-day basis and those who do it part time to get a feel if this is what you truly want.
I encourage everyone reading this article regardless of skill level in trading to attend the webinar as it will layout directly from the source how a consistently profitable part-time trader views going full time and how he manages to trade while marinating a 40-hour work week. Only then will you see if you really want to trade for a living or have the best of both worlds of a salary and side income after learning.
Also be sure to comment below and tell us if you trade part time or full time and how its been.
Webinar: How I made 20K In February Trading-Part Time