5 Steps to Becoming an UNEMPLOYED Trader

In a world where everyone has easy access to online trading, why are there only a few succeeding as  traders? After all, what investor has not dreamed of becoming a  trader—working comfortably at a home computer, being your own boss, watching profits roll in? While many aspire, few actually succeed.

 

1. Conduct a Self-Assessment

Successful trading requires a combination of knowledge, skills, and traits as well as a commitment to a lifestyle. Are you adept with mathematical analysis, full of financial knowledge, aware of behavioral psychology (in yourself as well as others), and do you have the stomach for entrepreneurship? Contrary to the perceived notion of an easy life or easy money, trading actually requires:

  • Long working hours
  • Very little leave from work
  • Continuous self-learning with no guidance
  • Risk-taking abilities
  • Never-ending commitment to daily activities of the job

 

2. Arrange Sufficient Capital

No one can generate profits consistently. Intermittent and extended losses are part of the trading game. (For example, a trader may suffer eight loss-making trades in a row and only recover with profit on the ninth trade.)

To handle these risks, a trader must have a sufficient cushion of capital. As Van Tharp explained in Trade Your Way to Financial Freedom, entering the trading world with only a small amount of money is a sure path to failure. Before quitting your job to trade full time, Tharp recommends having at least $100,000 for trading. Novices can start with smaller amounts, depending upon their selected trading plan, the frequency of trading, and other costs they bear. To actively trade it is required that you maintain a balance of $10,000 in your trading account.

3. Understand the Markets

Traders need a solid foundation of knowledge about how the markets function. From simple details (like exchange trading hours and holidays) to complex details (like the impact of news events, margin requirements, and allowed tradable instruments), a trader needs to have a broad knowledge base.

4. Understand Securities

Stocks, futures, options, ETFs, and mutual funds all trade differently. Without a clear understanding of a security’s characteristics and trading requirements, initiating a trading strategy can lead to failure. For example, traders should know how margin requirements for futures, options, and commodities significantly impact trading capital or how an interim assignment or exercise of an option position can shatter the trading plan completely.

Lack of knowledge about these necessities specific to securities can lead to losses. Aspiring traders should ensure full familiarity with the trading of selected securities.

5.Learn Mini-Course ‘UNEMPLOYED TRADER’ from Yuriy Bishko

You can start trading anytime. But don’t hurry invest money in trading before you learn basic knowledges. If you’re looking to jump into the world of  trading, start with Mini-course ‘Unemployed trader’ from Yuriy Bishko. 

Find out here: https://trading-for-profit.com/