Trading can be a serious business
Eleven Truths to Consider Before Becoming a Full-Time Trader
Embarking on a journey as a full-time trader is a significant decision that requires careful consideration. Here are ten fundamental truths to ponder before taking the plunge into full-time trading:
1. Trading is a Serious Business
First and foremost, understand that trading is a serious business. It is not a hobby or an easy path to wealth. Treat it with the same level of seriousness as you would any other profession.
2. The 10,000-Hour Rule
The concept of the 10,000-hour rule, popularized by Malcolm Gladwell in his book "Outliers," suggests that it takes roughly 10,000 hours of dedicated practice to become an expert in a given field, whether it's medicine, engineering, law, or trading. Realize that trading, too, requires time and effort to master.
3. Passion for Trading
Do not be swayed by the glamorous image of traders portrayed on social media. Many of these depictions are designed to sell a dream. Your decision to become a trader should be rooted in a genuine passion for the craft. Trading is not a "get rich quick" scheme; it requires dedication and discipline.
4. Consider Starting Part-Time
Before leaping into full-time trading, consider starting part-time. Use it as a side hustle to test your skills. Strive to be consistently profitable across various market cycles for a minimum of 12 months. Longer experience (18-24 months) is even more preferable.
5. Scalability of Instruments and Systems
Choose instruments and trading systems that are scalable. While low-liquidity stocks might be manageable with a small account, as your capital grows, you'll need to shift to more liquid options. Plan for your trading account's growth.
6. Accumulate Capital Prudently
Never trade with borrowed funds, and work to generate your trading capital. If you are a student, consider approaching your parents for a small investment, but ensure that it won't affect the family's lifestyle significantly if it is lost.
7. Build a Safety Margin
Before transitioning to full-time trading, ensure you have a substantial cash reserve in the bank. This fund should sustain your lifestyle for at least 12-18 months and provide the flexibility needed in case of adverse market conditions or personal emergencies.
8. Commitment and Hard Work
Trading, like any other profession, demands unwavering commitment. Dedicate the requisite hours to your craft every day. Understand that there are no shortcuts to success; hard work and perseverance are essential.
9. Embrace Failure as a Learning Opportunity
Failure is part of the trading journey. Do not fear it, but rather, embrace it. Failing quickly allows you to learn from your mistakes and correct them. Each failure should be seen as a stepping stone to new opportunities.
10. Involve Your Support System
Your friends and family can be a significant source of support. Share your trading aspirations with them, and seek their encouragement. Having a strong support system can provide the emotional backing needed during the challenging times in your trading career.
11. Maintain an Optimistic Attitude
Cultivate a positive mindset. Your words, actions, and thoughts should exude positivity. Optimism can contribute to maintaining higher energy levels and attracting abundance. Believe in your abilities and have faith in your commitment. Remember, your dedication and positive attitude are the keys to your success.
As you contemplate the path of full-time trading, remember these essential truths. This journey requires dedication, perseverance, and a solid support system. Approach trading as a serious endeavor, be prepared for the challenges, and focus on continuous improvement.
~MS
Founder, MARS EQUITY