Can trading replace my day job?
Trading is a career of wealth and freedom if you know what you are doing. Just like anything in life that offers great rewards it will take A lot of time. Most traders aren’t even profitable for the first 3 years of their trading career. That said once you figure it out and understand what you are doing this can be a extremely profitable career that can not only replace your income at your job it can double, triple or even quadruple it. You can also significantly increase your freedom of time. Imagine trading 30 – 120 minutes a day and using the rest of the day to do whatever you had planned.
Requirements to “replace” your income from your job with trading
- A clear understanding of the markets, patterns, cycles, risk to reward ratios, and money management.
- Patience. Do not rush to start trading full time, you want to transition into trading. This means you will have to take your time and show consistency for at least a few years.
- A willingness to not quit. People start trading and do nothing but lose money for their first few years of trading. This is the number 1 reason the trader success rate is so low. You will have big losses along your journey and this is what prompts most to quit. Instead of thinking of it as money lost try to rethink of it as paying for your trading studies. People go to college and pay thousands’s. Are you not willing to pay the same for your trading studies?
- Have a profitable trading plan. Always make more than what you lose.
- Build a emergency fund first. You should have at least 1 year of your bills set to the side. The reason this is important is because trading can be volatile and if this is your sole source of income you will need to make sure you have some “oh crap” money set to the side to protect your household.
- Diversify your trading. Don’t be solely a swing trader or day trader. Be a money maker, this means you do it all. That includes swing trading, day trading, long term investing, dividend investing, mutual funds, etc. Yes you will have something you are good at but this doesn’t mean you ignore everything else. Make your money work for you instead of you working for it.
Yes trading can replace your day job but you have to enter this business in a systematic approach. You can make tons of money but can easily lose just as much as you can make. That being said you need a proper plan to help guide you towards success. I would be happy to teach you the right way to start trading. Feel free to join anytime at Savagetrader.net. You can also email me for any question’s you may have at [email protected]