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Today, everyone wants to quit their job and become a full time trader, but the problem with that trend is that many of us do not want to learn the market; People are also quitting their jobs to become full time traders. But have you asked this question yourself: can i become a full time trader? The answer is absolutely yes! but there are some conditions.
You can become a full time trader and you can live just off by trading full-time. You can do that, but should you do that right away? No, please! Wait to do that. There is a process to it. You can do it. You can become a full-time trader, but wait to do it. There is a process that you have to follow.
Three reasons why you should wait to start or should not become a full time trader right away.
Capital
Capital – so when you come into the market as a beginner. I’m sure you wouldn’t have a large capital in your hand. Even without having a large capital, you might be thinking that you can make a large return, and that return will be enough for you to completely live your life for all your expenses to be taken care of right.
I’ll give you a simple example here: a lot of people come to the market; they might require 50000 rupees to take care of their expenses. So they might have a salary of 50,000. they’re quitting that job, giving them 50,000 salaries, and they’re coming into the market expecting an income salary from the market by trading nearly 50000 rupees.
In the capital, they may have 2 lakh or even 1 lakh rupees. So, with a capital of 1 to 2 or 3 lakh rupees, they’re trying to generate 50,000 rupees every month. Many of us know it is not possible.
Let’s take 5% days returns of your complete trading capital in a month. Again, making things very clear, you can make 50% returns in one trade, 20%, or even 100%. But I’m talking about 5% percentage returns of your entire trading capital is a conservative target per month.
Suppose that is the case for a person to make 50,000 rupees salary or an income from his trading business. He should have a capital of 10 lakh rupees. Yes, you have to have 10 lakh rupees for making 50,000 rupees a month. This is not a hard and fast rule. I’m giving you some numbers and some things to think about on your own. I’m sure you can do your calculations on your own. and to achive this you should have a good trading strategy too.
So if you come to the market with a small capital and still want to make 20, 30 or 50 thousand every month, that is a formula for failure. Then you might be chasing really difficult trades. Trades that cannot actually give you good returns, and then you’ll end up failing in the market.
Now, someone might think that they have good capital, to begin with, so I’ll start with great capital now; that is one of the golden rules when it comes to trading: do not start with large capital. Only start with a bare minimum capital, Which you can afford to lose; only start with the minimum capital and then start your journey from that.
Time
You have to give yourself time to build skills and confidence in the market. Because here, we can see a lot of other professions going around; we can see doctors, engineers, carpenters, drivers and a lot of professions if you look into them. They have given a lot of time to learn about their careers, and only then do they stand on their own and then do that on their own.
Any profession, for that matter, so likewise in the world of stock market in trading also you have to give yourself time. You have to give yourself time to learn about the skill; you have to give yourself time to experiment practically. You have to give yourself time to be trained in the domain, only then you’ll have the skill and confidence in order to become a successful full time trader.
We see a lot of beginners actually in the early days. They are dependent on an advisor, a tip provider, or some friend who is operating in a telegram or a WhatsApp group in order to give them stock tips and advice. Only then can a beginner can take winning trades. So, if that is the case, you will never become a full-time successful trader. You have to give yourself time, so that you can build confidence, you can build skill, you can learn about the market.
You have to give yourself time to see different market conditions. I am sure that a lot of you came into the market within the last year. We have only seen a great bull run in the market. So just going by that, if you think that they can do well in the market and if you decide to become a full time trader.
That is an absolute formula for failure again. Because the market was very easy in the last year, that is not the case. Always market can go into a complete bearish phase, and it can go into a pure consolidation phase even for years.
What will you do then? So you have to give yourself time so that you can see or you will see all the different market conditions? You should give yourself time for one to three years where you can see all market conditions, so that you can learn all the tricks and tips and you can have them up your sleeves.
So that going ahead, whatever the market throws at you, you will have the trick in your arsenal to weather that storm in that condition you can become a full time trader. So again give yourself time so that you can see and learn about all market conditions.
You have to give yourself time in order to find out the monthly and yearly returns that you can generate. Depending on your skill your understanding of the market, everybody can have subjective returns of their capital that they can develop over a month average returns.
So if you do or if you trade for one whole year or probably for three years. In this three-year period, you can actually look into your data and see that, hey, this is the average returns per month that you can make, or you can understand this is the average returns per year that you have already made. Based on that data, you can plan your journey. So, when you give yourself time, you can understand what are the historical returns that you have generated.
As I said in the beginning, you need, or for example, you might need 50000 rupees in income per month, and now you know seven per cent days is a return of capital that you can make every month. Now, you can calculate how much capital you need to deploy; otherwise, how would you ever know the capital to be deployed? Now you have historical data, you can decide on the capital. You can actually start working to build that capital, which is required uh to let you become a full time trader.
You have to give yourself time in order to start gradually increasing your capital. This is also important because you might be starting with a very small capital, right? Maybe after one or two years, the plan is to increase the capital to such a high that from that capital, you can become a full time trader, so probably you are starting with 10,000 rupees.
The end goal is to start trading with 10 lakh capital. Maybe that is the plan, so if you actually trade with 10,000 rupees for maybe one year or two years and on one fine day you’re increasing your trading capital to probably 10 lakh rupees, that is going to be really difficult for you because you’re seeing a stop-loss of maybe 500, 1000, 1500 rupees that’s it.
Still, when you increase your capital to 10 lakh rupees, you might see stop-losses in the tunes of 50000 rupees 70000 rupees, or even a lack of rupees might happen on some days. So when you suddenly see stop-losses in the tunes of such large numbers it might be very difficult for you to digest that.
In that case, when you give yourself time, you can gradually increase your capital on your journey towards your final goal. So when you’re gradually increasing your capital, first trading with 10000 rupees, after six months increase it to 30000 or 50000 rupees, so you are developing an appetite for yourself for seeing larger profits and also for seeing larger losses. That will also definitely help you in your journey towards becoming a full time trader.
Emotional control and Discipline
Gaining skills is not everything; knowing price action trading and knowing strategies that will definitely work isn’t enough for you to become a successful trader. That is not enough how much of a great plan or weapons you have. You have to have emotional control and discipline; only then can you become a successful trader. In your early days, if you actually quit your job and if you are depending—your life is depending, your income is depending—only on your trading income, that itself will put a psychological toll on your mind. When that happens, you’ll never get a chance to develop emotional control and discipline. Do not quit your job and become a full time trader in the early days so that you can easily, safely, and with a lot of peace of mind develop discipline and emotional control for yourself. I hope you understand that now.
Process to become Full Time Trader and Solution
The solution to this question has two parallel processes that you have to start right away.
Know your historical returns and also develop a winning process; that’s process number one. Apparently, you have to do this as well, which is to start generating or to start working in order to develop or build your trading capital.
I want you to start as a part-time trader, not as a full time trader. Start as a part-time trader with bare minimum capital and then do that for one to three years. Make as many mistakes as possible; try to build as many skills as possible. Try building emotional control and discipline as much as possible. Increase your capital in a very, very linear way. In the process, make as many mistakes as possible and build skills. That is what you want to do in the next one to three years.
Do that for one to three years. When you do this for one to three years, what happens? You actually get to know the kind of returns that you can generate for yourself on a monthly basis, on a yearly basis. As we already know, knowing those returns—that percentage—is absolutely important. You’ll get to know the percentage by doing this process. When you also follow this process, you’ll actually develop a winning process for yourself. You’ll start finding processes and strategies that you can follow that are suitable for you, and what is the trading style that you have to follow so that you can win, right?
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