Insider Look At Full-Time Trading: Pitfalls, Pros & Cons
Imagine how cool it would be if you could go to the future and see how your choices worked out? Like, anytime you have a decision to make, you just ask your future self: "Dude, was it a good idea?"
Guess what? It's possible! Well, not the future self part, but knowing how things work before you actually go for them. If you want to know what your conversion to trader might be like, just check out these insights from traders who've been there already.
How long does it take to learn how to trade?
They say good trading is 80% experience and 20% theory. What do this 20% include?
- Basic knowledge of economic theory
You need to know what are supply and demand and have a general understanding of how money works.
- Indicators
You need to truly COMPREHEND them because you'll use them to make predictions. Learning them will take you a week at most
- Trading patterns
This is the most challenging and time-consuming part of your studies. You need to know them by heart. Well, not necessarily all of them - the basic ones will be enough to get started.
- Market theory
Here, "Technical Analysis of the Futures Markets: A Comprehensive Guide to Trading Methods and Applications" by John J. Murphy is the only thing you need. People call it the bible of technical analysis. Reading time: 16 hours.
Bottom line: it will take you about 1 month to learn the basics, and about a year to learn it through and through.
What about the initial investment?
“How much money do I need to invest if I want to make a sustainable profit?”
This question probably bothers traders-to-be more than anything. Well, there is a clear answer:
Around $50,000
Wait, don't panic and don't close the article! This is the amount you need if you want to make $2,000 - 4,000 every month painlessly and hustle-free.
Can you enter the market with a lower amount? Sure, no problem, this is what most people do. If we're talking about trading as a full-time job, the higher your initial investment, the better. However, many people consider trading as their side income. In this case, you can enter the market with $100 and work your way up.
What about the working hours?
It depends on many factors, but generally, traders don’t have rigid schedules. However, planning your day is a good idea to systematize your processes. This is an example of what your working day may look like:
- 9 am.Wake up, breakfast, YouTube videos, news, memes
- 10-11 am.Checking your opened positions
- 11:30 - 16:00.Analyzing you pairs/instruments, trading, reading market news
- From 16:00. Free time
After that, you are free to do anything you want. Well, actually, traders are never completely free because you have to track the signals and make decisions all the time, but it only takes a few minutes.
What are the perks of being a trader?
1. Freedom of action
You are your own boss, nobody tracks your work or forces you to do things you're not willing to do.
2. Flexible schedule
You may or may not set a fixed working schedule for yourself depending on what's comfortable for you. Many traders don't bother. Anyways, you can go on vacation anytime you want or rearrange your plans without hurting your work progress.
3. Income
Forex is jam-packed with money. Aside from actual trading, experienced market players can monetize their expertise and hold seminars, be tutors, and consult people. Traders can make around 10% of their bankroll on a regular basis, and sometimes get a chance to double/triple/quadruple it if they're lucky.
Bottom line
There's no "one-fits-all" scenario, and trading routines may vary from person to person. The best thing about Forex trading is the fact that it's adjustable to different lifestyles - you can find a combination that will work for your specific needs, no matter what they are. Obviously, one thing each trader needs is an analytical mind. If you are really bad with numbers, you should stay away from trading, and this is the only essential limitation.
