It’s a big move –perhaps the biggest one you have taken in life to date. It would be scary. It would be exciting. But what if it’s wrong?
Making the jump from your day job to become a full-time stock trader demands major consideration rather than just an impulsive move. You must think through every little factor.
Before you send a resignation letter to your boss, make sure that you’re really ready.
To help you with it, here are 5 signs that you’re not ready to quit your job to take up stock trading as your full-time gig:
1. You haven’t made a dime from your trades
This is a clear indicator that you should push your transition to sometime later when you have actually made some money from your trades.
You don’t want to hasten the process and take unnecessary risks to create problems in the financial end.
Having made some profits would give you decent experience and confidence as a stock trader that can you can tap on to grow and create more wealth.
2. You haven’t gone through proper training
Self-learning is important, yes. However, it’s only going to help you so much.
The confidence that one requires to make better decisions and successful trades comes naturally after formal training.
So, if you haven’t yet enrolled in and passed good stock market trading courses, that’s a sign that you’re not fully ready to become a full-time trader.
3. You’re still not good in technical analysis
Knowing technical analysis is the cornerstone of being a profitable stock trader with a good portfolio.
After all, you can only depend on news and others’ opinions up to a level. To make more profitable trades – the ones with the bigger margin – you’re going to have to have to do the analysis yourself.
You must read the charts and understand market trends to better fit your trading goals.
If you’re still not good in technical analysis, you’re not ready to take stock trading full-time. Enroll yourself in Stock market courses that focus on technical analysis.
4. You don’t have sufficient capital in reserve
Stock market is very dynamic. You’re never assured of high returns. Even your best-planned trades can fail.
Meaning, without a rich portfolio, there’s always a financial risk.
Do you have a basic capital reserve to tackle this risk?
Do you have enough capital to sustain a loss and save your portfolio?
Do you have enough money to support your lifestyle?
If you don’t have sufficient capital reserve, it’s not a good idea to pick stock trading full-time yet.
5. You don’t have a (thoughtful) long-term plan
Profitable stock trading is all about having a short and long-term plan – and sticking to that plan emotionlessly.
Even when you day trade, your move must come in view of the long-term plan.
You shouldn’t become a full-time stock trader if you don’t have a well-thought, long-term stock trading plan.
These are 5 signs that you’re actually not ready to quit your job to become a full-time stock trader.
Don’t rush through this decision. Consider every little factor before making the jump. A wrong step can create all sort of unnecessary problems. Have patience. Continue with your full-time job and part-time trading until you’re ready.