Are you trading on a part-time basis earning some money, but not as much as you would like to earn? If you’re contemplating a full-time career as an online trader, congratulations! If you have been successful as a part time trader, this is something you should seriously consider. Here are some tips to assist you in a transition for part time to full time trading.
One to Three Years of Living Expenses
Even if you are a successful part time trader, you likely won’t bring in a full-time income for at least a year, and most people need at least three years. This means you’ll have to have money to be able to live off during those years.
The best way to know if you have enough money to survive for three years is to multiply your current after tax salary by three. You should have at least that amount in your savings account ready to use for your living expenses.
You could try to run a full-time online trading career while working your current job, but just keep in mind that you’ll need the time to devote to your online trading work. This brings up the next point on turning your part-time trading into full-time.
Make Sure You Have Enough Time to Devote to Online Trading
You will need to work your online trading business eight hours a day (or more!) for five days a week. Yes, this is a consistent full-time job. It’s not one in which you’ll work a couple of hours a day and make thousands of dollars. You need to work it for it to work for you.
You’ve probably seen ads on the internet exclaiming “spend 15 minutes a day trading.” Don’t believe it for a second. Trading is very hard work!
The good news is that you can work this full-time career at home. You can work early in the morning or late at night. You can work on the weekends as well. As long as you put the time in, you’ll be in a good position to do well. It does not always have to be during normal work hours.
Have More Capital Than You Think You Need
If you think you need $20,000 in capital, double or triple it before you get started. This way you have much more money to use to place trades. Even if you make some mistakes, which happens when you’re getting started, you’ll end up with more money in the end because you’ll be able to trade bigger and better since you have more capital to work with. The last thing you want to have happen is run out of capital as you’re just getting your full-time career rolling.
Since you’re already online trading on a part-time basis, you should have a rough idea of how much you need. Just double or triple it to ensure you are safe.
Get Ready for a Full-Time Career You’ll Love
It’s really about having money saved. You should be able to live without working for at least a year AND have enough capital to be able to really understand how to only create proven trading strategies that will perform the best for you. Once you have the money, all you need is the time, and that should come easy since you won’t need your current full-time job anymore.
Transitioning from a part-time online trading career to a full-time career may be nerve-wracking, but it can be one of the best decisions you’ll ever make for your life. Just make sure to go ahead and get yourself positioned for it. You’ll thank yourself later.
Related article you may find interesting: “What is a Trader?“