When do I have to quit my job to become a full time trader? How can I manage both?

Updated on : December 8, 2021 by Katie Gordon



When do I have to quit my job to become a full time trader? How can I manage both?

Well, it is very personal, but here I am going to tell you the best and most common way that you can plan to become a full time trader.

First, you must have around 3-4 years of active experience in the stock market and since the last 2 years, you are making money on average. base more than your salary and you should also have some backup money for your emergency account. Than you should think about becoming a full-time trader.

First, he was an investor who followed the principles of investing in value. That was in the 1980s. Even then, in bear markets, I was able to achieve between 25% and 50% per annum (which was an achievement in those days when the price movement was not that big and took due time. low levels of speculation and low retail participation).

Then when big spikes and dips started to happen (from the early 1990s), I started trading stocks using Technical Analysis.

In the new century, with the advent of e-commerce and derivatives, I began to use the same principles of technical assistance for derivatives trading.

Took a few yeah

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First, he was an investor who followed the principles of investing in value. That was in the 1980s. Even then, in bear markets, I was able to achieve between 25% and 50% per annum (which was an achievement in those days when the price movement was not that big and took due time. low levels of speculation and low retail participation).

Then when big spikes and dips started to happen (from the early 1990s), I started trading stocks using Technical Analysis.

In the new century, with the advent of e-commerce and derivatives, I began to use the same principles of technical assistance for derivatives trading.

It took a few years for them to become profitable.

In the first 2-3 years, it seems that you have solved it with small amounts and the market seems to mistake it for a new twist each time.

In the next 2-3 years, you start to cover expenses and keep the market in check by recouping losses with profit.

Then you start making money with more profitable trades than those that generate losses.

The reasons why one goes from loss to profit are ...

- Filter the correct settings where the probability that the price will follow your preferred path is very high, enter only then (patience to enter only good settings; avoiding the temptation to trade frequently through false alerts and the importance of not taking losses instead of making profit).

- Perform multi-time frame analysis to filter out false breakout signals, thus reducing further chances of losses

- When entering trades, place stops at levels that allow a small disadvantage, but avoid catastrophic losses.

- When a stop is removed, immediately place the buy stops a few percentage points higher so that, in the event of a false stop and a subsequent rally in its direction, you will re-enter and make a profit on that trade.

- Manage money carefully and have the discipline to exchange only the amount already decided and not fall into the syndrome of the exchange of jackpots (being a greedy guy, this was easy :)

- Limit trading with a cap on volumes to maintain entry and exit flexibility.

- Periodically make a profit and invest in good long-term assets and use trading alone to generate quick profits to drive returns, which could be used to invest in strong long-term assets.

Warren Buffet's rules apply even more in trading ... do not lose capital as the most important rule (modified as ... lose as little as possible before reaching profitable trading capacity again).

Luck always plays a much bigger role than people think! :)

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