Making the transition to becoming a full-time trader was one of the hardest decisions I’ve ever had to make. It was also one the best. I knew this was what I wanted to do, but it didn’t happen overnight. In fact it took about an entire year to get myself setup and prepare before I took that final plunge into full-time. Here’s what I needed to get in order before I made it happen.
We always tend to spend money on trifling, flashy things in order to impress your friends or your crush. But if you think about it, most of them are meaningless. When you’re trading you can’t afford the life of luxury anymore, at least in the beginning. Cut your expenses down as much as you can so that you can keep going without the stress of paying large bills.
Develop Proper Habits and Routines
It may come as a shock to some, but my daily habits and routine were already set before I made the big transition. This is important so that we don’t have to waste time trying to figure things out after the plunge. I’d rather know what I need to do in the morning, how to scan for stops, how to set up my charts and tools beforehand. This will make the switch a lot smoother.
Have a Trading Plan
You need this regardless of whether you’re trading part time or full time. Without a proper trading plan, it is impossible to trade profitably. But it takes time to develop a routine that you’re comfortable with and to develop the discipline to stick to it. I made sure that I had my rules in place and my emotions in check before I decided to take the plunge. Most importantly you need a reliable strategy that has proven itself to make you money.
Keep Strong Relationships
It’s undeniable that a huge transition will affect your relationships with those around you, because trading full time is the same as starting your own business. It’s important to communicate your journey with your loved ones so that they understand what you’re going through. Whether it’s your family or your partner, they need to understand that your expenses will go down and that this is not a get rich quick scheme. Most importantly, having the support from your loved ones can in fact make or break a trader.
Finally, have a side hustle to help support your cash flow. Trading is a full time job, but it’s one of the hardest things you can try to achieve. The biggest barrier is that absence of a consistent cash flow. Quitting your job might be necessary to watch the market during the day. However, you might have to pick up a weekend or part time job to keep you sustained and pay the bills. This is also a great way to alleviate stress from your trading. Having trading be the source of financing your expenses will exert a great deal of stress on your emotions and your trades.
And there you have it. Some tips on how I got my life setup before taking that first step transitioning into full time trading.