So You Want to be a Full Time Trader?
Technology has come a long way since the 1990′s and with it have come many positives but also the odd negative. I myself am a huge fan of the internet and all of the computing power that we now have access to, along with all the great little gadgets too 🙂 It has never been so easy to trade the Markets from a functional standpoint but developing the ability to trade successfully remains very challenging for the majority. Unfortunately there are so many people online trying to make money from your loss that the internet floods you with amazing claims, fantastical robots, and propaganda on how easy it is to make money from trading.
Through some nuggets of advice I will try and give you a realistic view of what is ahead of you if you answered yes to this question.
Nugget of Advice #1:
I receive hundreds of emails each week from internet marketers promoting Forex and Binary Options products that they clearly know nothing about. The senders of these emails obviously don’t use these products and it’s purely about making money off of YOU. If I am ever bored enough to look at these emails they usually make me laugh but that’s probably because I have been trading since 2005. I do try and think back to when I was new to this though and just how convincing some of these emails can be.
My advice to anyone who wants a real shot at making consistent profits and a job for life with trading is to ignore these marketing emails, there is a decent amount of really good education out there but you will need to source it for yourself. There is no such thing as a get rich quick approach to trading so if you come across any emails or websites telling you different, delete and move on.
Nugget of Advice #2:
The good news is that there are some very successful traders out there and you can find good education. The bad news is that even some of these guys don’t really care about teaching you properly and are also just looking to make money from you directly. The common approach from this type of trap is to flash their trading statements at you so you get hypnotized by the $$$ signs. Some of these trading statements are just manipulated in programs like Photoshop and some are verified with services like Myfxbook. The real point here is that you will not be able to emulate a successful trader overnight, there are way too many variables. As you can see, even the question of who to trust and invest your time with is a tricky one to answer!
My advice to you as you attempt to answer that question is to make sure that you ignore the $$$ signs if they get flashed at you. If they are profitable then good for them but you need to stay focused on what is directly important to you. Does the education look thorough enough to help you become profitable? Does what they teach make sense to you from a logical standpoint? Can you back test the methods taught and see that they work consistently? (instead of just any picture perfect examples provided) Is the issue of trading psychology properly addressed and acknowledged? Is there a video course? Do you get any useful software designed to help you see what is taught? What kind of support is provided? Those are just some of the questions that should matter to you.
Nugget of Advice #3:
Understanding what is required to trade profitably is essential to even making a decision if becoming a full time trader is something that you want to pursue. There are three main components that you will need to consider.
1. The Technical Side of Trading
The very first and most basic part of trading is learning and being comfortable with the hardware and software that you will be using to execute your trading.
2. The Strategic Side of Trading
The second and most important part of trading is having a complete trading plan that includes a reason to enter a trade, a reason for where you put your stop loss, a reason for where you put your take profit, a reason for when and why you may move your stop loss to break even, a reason for when and why you may trail your stop loss in profit, and a reason for your position size / money management. Understanding risk vs reward and the powerful effect it can have on your strategy also needs to be worked in.
3. The Psychological Side of Trading
The last and most difficult part of trading is dealing with the human elements of greed, fear, and the general emotions that will obstruct your strategy.
My advice to you is that you make sure the technical side is easy enough for you, you don’t want to waste too much time on that piece of it because it’s the easiest part. Make sure that your trading strategy is complete and bullet proof, you could create your own over time or find someone that has already done it for you in a way that makes sense to you. The psychological part of this is something that can’t be taught and will just take some time. It is however always nice to read about the common psychological mistakes so that you know you are not alone. The comradery of a good live room and/or forum can also help ease this process for you.
Some of the cluttered charts I see always make me scratch my head, especially the ones with all the squiggly lines everywhere. I find myself even more confused when I get emails trying to sell me what is basically a glorified moving average. I’m not sure why anyone would ever buy those but I guess they do. The thing you need to remember about price is that it only goes up or down and nothing is faster or more accurate than price itself, anything else is just lagging behind. Keep your charts clean and learn how to read price action, master the technical and strategic sides of trading and the psychological side will come with time and through experience, there are no shortcuts. Chose your educators wisely and make sure that what you are learning makes complete sense to you. Don’t just blindly trust what someone else is telling you, prove to yourself that it works and understand why it works.
I applaud you for having the courage to embark on a journey that not many are able finish, it can be a real life changer and not just because of the financial rewards, but the freedom rewards too!
Good stuff as always
Thanks Vin, happy you enjoyed this article