This lifestyle is extremely rewarding, but requires both dedication and adaptability.
It's not merely about executing trades, it's about developing a strategic approach to treating trading as a business and structuring your life accordingly.
The trading lifestyle is a way of a living that most full-time and part-time traders enjoy. It includes the ability to go anywhere in the world, trade from anywhere that has an internet connection and allows traders to set their own schedule.
This lifestyle can be intense at times, but it's also fun and rewarding.
It’s a continuous journey of self-improvement, where each trade offers a new learning experience, and the potential for growth is only bound by my own commitment, creativity and perseverance.
Benefits of Being a Professional Trader
The life of a professional trader can bring several fantastic benefits.
For starters, the potential to earn money can be substantial.
Unlike many traditional jobs, my capability to generate income isn't capped by an external salary structure, which gives me the chance to increase my wealth based on my skill and market conditions.
Leverage is another benefit of trading.
I utilize leverage to trade larger positions with less capital, amplifying my gains from favorable price movements in the markets.
Another key benefit is this lifestyle flexibility trading offers me.
I can set my own schedule, which means I can trade at the times that suit me best, allowing more balance in my personal life.
Lastly, there's a deep sense of personal satisfaction that comes from mastering the markets.
When a trade works out as I planned, there's something deeply rewarding about that.
The intellectual challenge and the continuous learning curve keep me engaged and motivated, which are invaluable intangible benefits in any career.
Downsides of Being a Professional Trader
Being a professional trader involves more than the allure of financial rewards.
It demands a high level of discipline, the ability to think independently and stick to a trading plan.
A trader must also be willing to accept the financial risks that come with trading.
It can be stressful when I'm on a losing streak, even if I know that it's a normal losing streak.
Another aspect that has to be controlled is stress.
If you want to trade for a significant part of your income, you have to be willing to not only manage your stress while you're trading, but also in your everyday life.
It's vital for me to minimize the effect of my emotions on my trading decisions, as lapses in emotional control might lead to impulsive trading.
This requires a high level of self-awareness and keeping overconfidence in check.
Working on my trading psychology is a continuous process.
Moreover, trading can sometimes be isolating. I often spend long hours in front of screens, which can get a little lonely at times.
So it's important that I get out of the house and participate in activities with other people.
Characteristics of a Professional Trader
In my journey through the trading world, I've come to understand that certain characteristics stand out among professional traders.
They hone specific skills, adhere to a routine, and embrace a healthy lifestyle, which all contribute to their success.
Healthy Lifestyle
I prioritize my health and rest as a trader.
My routine includes adequate rest and a balanced diet which ensures that I maintain the focus needed for assessing trading opportunities and conducting research.
Exercise is also important for letting off steam and being in the optimal mindset to trade.
Discipline
My success in trading is built on a foundation of discipline.
Following my plan and trading within my limitations are very important.
This discipline helps me capitalize on opportunities without taking unnecessary risk.
Emotional Control
Trading can be an emotional rollercoaster.
I've trained myself to manage my emotions during the ups and downs.
This includes adopting an attitude of detachment from the outcomes and being willing to take what the markets give me.
Meditation has been a valuable tool in this area.
Risk Management
I treat risk management with utmost respect.
By setting stop-loss orders and managing my position sizes, I protect my capital.
My trading lifestyle incorporates continuous evaluation of risk to align with ever-changing market conditions.
There were times in the past when I have strayed from my risk management principles and that lead to my biggest losses.
Continuous Learning
The learning curve in trading never truly plateaus.
I dedicate time to self-improvement, seek out mentors, and stay hungry for new knowledge.
Understanding that every day offers a chance to learn something new keeps me ahead.
Trading also gives me the opportunity to be creative.
There are opportunties to create trading strategies and methods that not many other traders know about, and that's exciting.
Should You Quit Your Job to Trade Full-Time?
The goal of living the trading lifestyle is appealing, but I've seen way too many people quit their jobs before they are ready.
Quitting too early only leads to added stress and usually leads to failure.
Remember that nobody can tell you when is the right time to leave your job.
That decision is entirely up to you.
But here are some thoughts on what you should consider very carefully before quitting and going full-time.
Proven Strategy
Make sure that you have a proven strategy that you have fully backtested and traded with real money for at least six months.
A longer time is better but I consider that the bare minimum.
Financial Resilience
Consider how many months of savings you need to have to feel safe if you went full-time with trading.
I feel that 1 year is a minimum.
But again, do what works for you.
Also be sure that your current trading performance is making at least double of what your monthly expenses are.
This is because trading is not like a job where you get a consistent income every month.
You might actually lose money some months.
A final thing to consider is starting up a small side business that can help supplement your income, or get a part-time job.
The additional income can really take the pressure off your trading.
Skill Assessment
Trading effectively is a skill.
Honestly review your performance and see if you're ready.
It helps to have detailed stats on your performance.
Having a trading journal is also very important.
If you find it difficult to assess your skills, consult a close friend or family member, preferably one that has as business background.
Another great person to get feedback from is a trader who is already trading successfully, or a trading coach.
Commitment
You have to be willing to commit 100% to this endeavor.
This is not an easy profession.
The buck stops with you and you have to be ready for that tremendous responsibility.
Final Thoughts on the Trading Lifestyle
So that's what the trading lifestyle is, as well as the pros and cons.
It's not for everyone.
But if you're up for the challenge, it can be a very rewarding way to live.
Being a successful trader can free up your time to learn other things and become the person you've always wanted to be.
It also allows you to only spend time with people who you want to spend time with, instead of spending your days with people you're forced to spend time with.
That alone can be worth the effort.
