12 Realities of Trading For a Living

Trading for a living, like any other job or business, is a professional way to make money. Full-time trading, like any other business, requires a significant quantity of capital. The returns are similar to that of a commission-based salesperson. It’s less about trading from a laptop on the beach with a high-end automobile in the driveway. It is more about accepting the risk, managing the uncertainty and stress, and getting rewarded for outstanding deals.

Win and Loose is a Game of Part

Also, as a trader, we have to understand that you don’t just make money and receive a monthly paycheck of gains. There are also losing weeks, losing days, and losing months for any trader.

Realities of Trading For a Living

1. We have to obtain private medical insurance as We are no employer plan. In the U.S. This is usually double what you paid via our employment.
2. We will require a Certified Public Accountant (CPA) to do your income taxes due.
3. We will be our own employer thuswe have to make ourself complete the requisite hard work of study, screen time, and trading.
4. The smaller our expenditures are the less our need to make to trade for a living.
5. We should never attempt to trade for a living until We have a required number of record of success trading.
6. The quantity of capital we require for trading is depending on our return expectations and living expenditures. If we require $50k to live off of and your annual return expectations are 10% you will need $500k to trade with.
7. Don’t expect to trade for a living will be less difficult than your employment. It might be more tough and stressful than most jobs if you didn’t have trading knowledge.
8. If we have minimum monthly costs, no debt, and a year’s worth of living expenses saved before you begin.Trading for a living is a lot less stressful.
9. If we spouse works it can be significantly less stress since we have another source of income and access to healthcare and 401K advantages.
10. When we trade for a living you not only have drawdowns in the capital during losing streaks but also have the monthly drawdowns in capital owing to having to pay your monthly living expenses.
11. Multiple streams of income make trading for a living considerably less stressful. The average millionaire has seven sources of income.
12. The independence of trading for a living is worth the adventure.

Conclusion

For the majority of traders to compound financial gains part-time is the optimal technique. Trading for a living needs little expenses and a lot of capital added with a long-term track record of successful trading to have a shot. Trading for a living is quite comparable to being an entrepreneur. As an entrepreneur, You take the calculated risk of a lot of wealth for the prospect of financial freedom, being your own boss, and unlimited profit potential. You have to Keep your risk/reward ratio favorable if you go full-time trader. Always stay away from disaster by making sure the math works before you make the leap.

Also, read

Making Money with Trading

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