Want To Know How To Start Trading For A Living?
For every successful trader, there have been plenty who failed to take on this journey with caution, mentorship, and determination.
In this journey, it is true that almost anyone can trade. But not everyone will make the effort to learn from mentors, apply proven trading strategies and setups, and moderate risk – all steps that can significantly improve chances at becoming successful traders.
Learn to start trading for a living
Those who chose their own path while barreling down the road without any preparation will find themselves on a roller coaster ride that runs out of track – a costly path. This is not how traders should gain experience in the market.
Trading can be liberating. The ability to maintain control of your day, a healthy work environment, and utilize your unique trading skill sets – those benefits are immeasurable to many.
Each trader has personal reasons for why they want to start trading for a living. Trading isn’t limited by personality type, gender, background, or religion. What a trader values as the reason for trading for a living is irrelevant unless their main priority is to make fast money. Making a quick buck is possibly the worst reason to start trading.
One thing that successful traders do have in common is an interest in the markets and what makes assets move. Newer traders may not understand the market, but that comes later in the process.
Have a defined source of income
Anyone planning to become a trader should set aside a trading fund that is not needed for living expenses.
It is recommended that anyone beginning the journey of trading for a living should have a separate, primary source of income.
Avoid relying on trading funds as a source of income – this is a long-term goal.
When traders rely on trading earnings to pay bills, trades can easily become mired with a mindset that it is critical to make a profit rather than making a clean execution of a trade.
Developing skills needed to be an adept trader takes time. Paper trading is a place to start, even before making your first trade. Understanding your strengths and weaknesses is an important part of the learning process. Carve time out of your regular schedule to spend time in the market to understand the seasons, transitions, and difficulties you will encounter.
Before making that first trade, study in depth the trading platform you plan to use. Understanding the nuances of the platform can prevent costly mistakes when under pressure.
(Check out the video, above, for tips on how to start trading for a living.)
Find a trading mentor with experience
With all the information on the internet, new traders often overlook an important part of learning to trade well – finding a trading mentor.
Spend time finding an experienced trader whose trading style resonates with your personality and trading goals. Simpler Trading has a team of traders with an array of trading styles that appeal to traders with various skill levels and past experiences.
Connecting with an established trading community offers invaluable support. Full-time traders can point to someone in their trading journey they could look to during the peaks and valleys of developing their skills.
And keep in mind – if someone claims that you can make millions of dollars using their process, this is an immediate red flag. The market is a risky and precarious place. No mentor can guarantee success.
Whether practicing or making actual trades, create and use a written log to keep track of the ratio of winning and losing trades. When wins are bigger than losses, the transition from paper trading to the actual money on the line can be much smoother and backed by more confidence.
If you achieve the goal of leaving a day job to start trading for a living, it makes sense to place the earnings from trades in a secure account. Wins and losses on your balance sheet are all part of trading. After a good run and a long winning streak, this is the time to set aside earnings to scale back risk.
One thing that Simpler’s traders have learned is that the market can change on a dime. Traders who use the same strategies throughout all market environments stand a greater chance of taking losses.
Different market environments require adaptive strategies.
While there will be losses, don’t be shy in celebrating the wins. There will always be both, but your trading psyche needs to celebrate the wins.