For many, being a full-time trader is a dream profession. Thе idеa of waking up in your pajamas, еarning morе monеy in two hours than you do in a wееk at your day job, and being ablе to afford еvеrything you’vе еvеr wantеd is incrеdibly appealing.
Many pеoplе aspirе to achiеvе financial freedom, but only a fеw actually succееd. Does this mean that some are just not for it? Well, in reality, having the necessary skills is not enough. Sometimes, it’s all about the approach, and going about it the wrong way can hinder one’s journey toward achieving true financial independence.
Investing in cryptocurrency can be a rare and valuable opportunity to make significant profits, but it’s crucial to avoid overusing leverage and risking large losses. Rеcognizing this fact was thе kеy to sеizing thе opportunity and lеaving your day job to bеcomе sеlf-еmployеd.
Oncе you have a firm grasp of thе markеt and its workings, it’s vital to familiarizе yourself with thе mеchanics of trading. This is an еssеntial part of thе lеarning procеss for any prospеctivе tradеr and involvеs thrее kеy stеps:
Step 1: Gaining a comprehensive understanding of the markets and learning how to analyze them effectively.
Step 2: Acquiring knowledge of trading strategies, position management techniques, trading methods that you can find on bitcodemethods.com, and other critical aspects of trading (which we’ll delve into later).
Step 3: Putting your knowledge into practice by engaging in live trading.
Trading takes planning and strategy
Embarking on a career as a full-time trader is a rigorous and enduring journey. While there are enjoyable aspects, such as the freedom of being your own boss and not having to commute, there are also numerous challenges, including the need to carefully manage your finances, maintain strict discipline, and recognize that full-time trading requires a long-term strategy for survival.
Transitioning from a typical 9-5 job to a full-time trading career requires a major shift in one’s lifestyle and way of thinking. It involves entering a new asset category, adjusting one’s schedule significantly, and reevaluating money management and lifestyle expectations. Although this transformation is challenging, it can ultimately lead to great rewards for those who are able to persevere through the difficulties.
The journey toward success comes with both ups and downs. There are days when things don’t go as planned, resulting in setbacks, failures, and discomfort. However, it’s equally true that the achievements, financial gains, and the opportunity to live life on your own terms are real and tangible. Most importantly, the transformation you experience as a person during this journey is a significant accomplishment.
How to be a full-time trader and what are the risks – let’s see!
1. Start by building cash and savings
You should primarily ensure that you have a backup fund of at least two years’ worth of salary that you saved in case of emergencies. This reserve fund was not meant to be a part of your regular savings or investments but rather a side stash for unexpected situations. It is not hard to achieve this. Throughout some time, you will be able to generate trading profits and transfer them to a separate account to build up your reserve fund.
2. It is a good idea to hire a financial advisor
Making the decision to work with them can be one of your best choices. They will not only assist you in creating a business account for trading but also help you establish multiple accounts to save on taxes and invest your money.
You should start by transferring a significant amount of funds from your bank account to low-risk investment accounts due to the depreciation of USD over time. This decision has proven to be financially beneficial as the growth from these investments has already exceeded the amount you would have earned from a day job.
3. Do not forget that you will still need health insurance
You may not always consider the cost of health insurance since it is often provided by your employer. However, if you are planning to resign from your job, it is important to find the most affordable option available.
4. It is important to set a trading routine
As a full-time trader, maintaining a work schedule, hours, and routine is the most challenging aspect. You need to establish a work schedule that allows you to start a workday at 8 am and finish by 3 pm, at the latest. During this time, you can focus on managing any open positions and set bids or alerts for any other tasks that may arise. You should avoid checking the charts in between these hours unless it is necessary. Additionally, you do not have to work during weekends.
As time pass, you will gain the ability to recognize the ideal trading times that offer the highest amount of volatility. Otherwise, you could waste a considerable amount of time observing charts during periods of inactivity when every moment counts. Separating work from leisure time can be challenging, particularly if you take pleasure in your profession and it is always available, especially in the cryptocurrency market, which operates around the clock.
5. Learn when it is the right moment to make a trade
As a full-time trader, the most crucial aspect is to avoid getting completely devastated when the market turns against you. You must master the art of recognizing market conditions and “no trade” situations and accept that your earnings will not always be steady or predictable.
It is acceptable to take a break from trading for a few weeks if you are able to earn your entire yearly salary in just one week. You will find it beneficial to use predetermined position sizes and only take big risks when market conditions are favorable. By doing this, you can minimize the possibility of significant losses.
6. As a trader, you must make a profit
As a full-time trader, it’s important to take profits to cover bills and living expenses. The approach to doing this will vary for each individual. The aim is to withdraw profit from exchanges to prevent it from being reinvested in the market. Here are some suggestions for taking profits from trading:
1) Set a monthly or weekly target amount and withdraw any excess percentage of profits earned.
2) Withdraw a fixed percentage of all profits made from trading.
3) Withdraw all profits earned and maintain the trading accounts at a predetermined value.