Make Money Trading From Home
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- Is it possible to change your 9 to 5 job for profitable full-time trading?
- Steps to consider when building a trading career.
One of the most popular online searches among aspiring traders is; how to switch a regular 9 to 5 job for a full-time trading career. However, the large majority of users are usually looking for a way in which to get rich quick. In a nutshell, novice traders can make a living out of trading, but it’s not something that happens overnight.
There are many success stories that describe the journey that many traders have embarked on to become profitable and experienced. Indeed, these are the traders that have managed to make a living from trading but only by keeping patience and practice as core values. If your goal as a novice trader is to do trading full-time, then you need to understand that you can achieve it as long as you put in the time and effort required to become successful.
However, some traders may choose to keep a 9 to 5 job until they start to make enough profits. Once they have enough capital to support themselves for some time, these traders will start engaging with the markets on a full-time basis. This path may require more effort and patience but it is the safest way to determine whether it’s possible for you to leave your job or not. Some may also choose to switch to a part-time position to retain a regular income while having more time to trade. However, this is a risk since there is no guarantee that you will be making a profit while your fixed salary would have diminished.
This article talks in more detail about the risks of leaving your job for a trading career. However, we will also show you that it is indeed an achievable goal, it just a question of using the right tools.
Steps to Consider When Building a Trading Career:
1. Pick a Market and Understand It
Thanks to the internet, traders can now also engage with forex and cryptocurrencies apart from the stocks market. If you want to make a living from trading, it is crucial that you gain thorough knowledge about the market you chose. Webinars, forums and groups, tutorial videos, etc. provide valuable information for you to understand the way forward.
2. Learn More About Technical Analysis
So, once you have selected the market, you will need to learn how to analyze the charts. Some traders suggest that the best option to do this is to learn Fundamental Analysis as it tracks growth curves and revenue streams. However, this won’t be very helpful during your first year of trading. Moreover, focusing on Technical Analysis first will open the door to price prediction. Indeed, prices can go up, down and even sideways for long, medium and short periods. Technical Analysis is your best tool to predict the direction that an asset’s price will take.
3. Understand Risk Management
This is one of the most important, if not the most important step to consider. When trying to build a successful trading career, it’s essential to protect your capital before trying to make a profit. For this reason, novice traders need to understand the stop-loss features that are available.
For instance, ‘Equity Stop’, is a stop-loss on a set percentage of the trading capital. The ‘Chart Stop’, is responsible for placing a stop-loss on some of the major price levels on a chart. Furthermore, there is also the ‘Volatility Stop’, which is a stop-loss on the average volatility level. Some other stop-losses are also available for traders.
However, since the chart stops are based on market performance, it is the best option for those seeking long-term results. Moreover, equity stops are very important for novice traders as these are responsible for protecting capital. In addition, combining both will make you manage your risks more effectively.
Furthermore, there are two ratios to consider. The risk-per-trade ratio deals with the maximum bearable loss. Secondly, the risk-to-reward ratio highlights the ratio between the possible profit and loss of a position.
4. Practice Until You Build the Experience to Prepare an Effective Trading Plan
Every experienced trader will recommend that you build and practice a trading strategy before risking your funds. In addition, a trading strategy lets you build a consistent plan that targets profits. However, you first need to acquire the knowledge and actually engage with the market to execute your risk management strategies.
Once you have learned about risk management tactics, focus on how to read the charts for price prediction and the dynamics of your chosen market. The next step is to prepare a trading plan and keep improving it until it’s consistent. Once you have prepared an effective strategy, is time to engage. However, you can’t leave your 9 to 5 job until you have enough capital to sustain yourself for a period of time. Which leads us to the final step.
5. Separate Your Trading Capital From Your Sustaining One
This is the step many novice traders ignore when pursuing a full-time trading career. Furthermore, you can make an attractive profit and continue trading with it. However, what happens if you experience a big loss and lose your trading funds?
A prepared trader understands this risk. That’s why separating your trading capital from your day-to-day funds during a given timeframe, is crucial to embarking on the trading lifestyle. What good can come from leaving a job if you won’t be able to sustain yourself when a trade goes wrong?
Patience Is a Virtue
As mentioned above, exchanging a 9 to 5 job for full-time trading is a completely achievable goal. However, there is a specific knowledge process that needs to be implemented before starting to trade. Furthermore, after acquiring the right knowledge then it is important to build the necessary capital to sustain yourself without a fixed salary. Once you get enough capital to sustain yourself for a set period, then you can take the risk of quitting your job and dedicating yourself to building separate trading capital.
As you can see, it’s not only a long process that doesn’t come to fruition overnight; but it also requires discipline to attain the best results. It will take time, learning from mistakes, and the willingness to study every day. Masari Capital provides traders with the necessary tools and features to trade effectively and consistently. If you are ready to begin the journey and prove to yourself that trading is your optimal career path, then join our leading financial platform Masari Capital– a gateway to simple trading today.