I was planning to write on which type of trader you are, as you know from last article that you are made for trading or not. But before taking on type of trader a question arises can trading be done as full time job. Trading is a very lucrative thing to do, be it stock or commodities. Their is lots of money flowing each second in front of you every second. This easy money attracts everyone very easily. The initial success which one get make him think to go for full time as trading and leave current job. First thing here to understand is that trading is a business and is successful only if you follow all rules strictly. Benefits of trading business:
1. Very low entry cost: One can start trading from as low as Rs.2500 as many brokers provide big leverages.
2. No inventory or setup cost: One need to have only a demat / commodity account which can be opened for only Rs.200, And need smartphone with internet connection to trade.
3. No exit cost: Closing this business is very easy, just sell all portfolio and get money in account in next day
4. No running expense: No manpower needed, no other major expense, only a small brokerage and taxes on each trade
5. No fix time limit: You can have trade whenever you wish, if busy on a day then avoid trade on that day. No 9am to 5pm job absolute freedom
Inspite of all these benefits studies shows 90% traders lose money. Here arises a question can it be done full time. To go for full time trading you need to have proper strategy. Some steps are:
1. Small Trades: Take time to do trade on your own, avoid tips. We have different wonderful markets having time from 9am to 11:30pm. So take time to have trades in these market.
2. Manage expenses: Currently your expenses are set as per your income. If you break running income, have a plan to survive for 1 year without it.
3. Small Break: Take a break of 4-5 day from office and do full time trading in that. Observe results and repeat same after 3-4 months. Small trades you are taking will increase your accuracy and each time result will improve.
4. Big Break: Once comfortable and confident, take a big break of 15-20 days. If you are in some other business and not an employee, then you will be shifted automatically you don't have to leave current business. Observe result of this 15-20 days trading and see if you are able to meet your financial requirement or not.
5, Business Rules: Are you able to follow all rules which you have decided for trading or not. If not you need to work on psychology part and make it a habit to follow rules.
Before making any final decision remember that you are able to do tension free trading only because you are having other running income source. In big break try to work considering that your only source of income is trading and get all your expenses done from trading. If things are good, you are ready to have trading as a full time job.
1. Very low entry cost: One can start trading from as low as Rs.2500 as many brokers provide big leverages.
2. No inventory or setup cost: One need to have only a demat / commodity account which can be opened for only Rs.200, And need smartphone with internet connection to trade.
3. No exit cost: Closing this business is very easy, just sell all portfolio and get money in account in next day
4. No running expense: No manpower needed, no other major expense, only a small brokerage and taxes on each trade
5. No fix time limit: You can have trade whenever you wish, if busy on a day then avoid trade on that day. No 9am to 5pm job absolute freedom
Inspite of all these benefits studies shows 90% traders lose money. Here arises a question can it be done full time. To go for full time trading you need to have proper strategy. Some steps are:
1. Small Trades: Take time to do trade on your own, avoid tips. We have different wonderful markets having time from 9am to 11:30pm. So take time to have trades in these market.
2. Manage expenses: Currently your expenses are set as per your income. If you break running income, have a plan to survive for 1 year without it.
3. Small Break: Take a break of 4-5 day from office and do full time trading in that. Observe results and repeat same after 3-4 months. Small trades you are taking will increase your accuracy and each time result will improve.
4. Big Break: Once comfortable and confident, take a big break of 15-20 days. If you are in some other business and not an employee, then you will be shifted automatically you don't have to leave current business. Observe result of this 15-20 days trading and see if you are able to meet your financial requirement or not.
5, Business Rules: Are you able to follow all rules which you have decided for trading or not. If not you need to work on psychology part and make it a habit to follow rules.
Before making any final decision remember that you are able to do tension free trading only because you are having other running income source. In big break try to work considering that your only source of income is trading and get all your expenses done from trading. If things are good, you are ready to have trading as a full time job.
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