The decision to become a Full-Time Trader is NO easy decision. There are numerous factors that ought to be considered post Full-Time Trading. This applies to both new and current traders. The excerpt below shall explain the ideal approach in preparing to become a Full-Time Trader.
Disclaimer: The content herein shall in no way be interpreted directly or indirectly as a form of financial advice. The opinions herein are strictly Educational ONLY!
Market Research-
1: History of the financial Markets
2: What purpose does the financial market serve?
3: Who are the key participants and what role do they play?
4: Drivers of the Financial Market and their impact
5: Types of Markets and assets available
First Step Basis-
1: Which Market(s) is/are suitable for you
2: What impacts that particular market and how to access that information regularly?
3: Tools required to begin-MT4, MT5, Ctrader
4: Regulated and unregulated brokers...know the difference
5: Basic knowledge of the Market and how to use the tools to trade e.g. leverage, swaps, and familiarizing yourself with the interface of your trading platform
Trade Plan Development
1: Strategy- what method will you be using?
2: Mentorship- Would I need a mentor to teach me, if yes who?
3: Identify my weaknesses that can affect me as a trader- Social, mental and environmental factors are to be considered
4: Strategy Refining- Back test, forward test, research, develop your strategy
5: Identify your goals and objectives from trading- ensure it is realistic
6: Create a trading journal- note every success and loss in your back test and forward test phase, learn why it has happened and what can be improved
Conditioning Phase
According to leading psychologists, it takes 21 days to form a habit and 90 days to break one.
Therefore, over a 3 month period, do the following:
1: Trading plan/Journal formulated must be tested. Trading plan must be aligned with your personality, type of trader and encompass every possible risk and money management.
2: Choose an asset from the market class of your choice. Scale back into price history for the past 10 years.
3: The goal is to condition your eyes and your mind to see your trading rules for the past 10 years. Repeat this process if necessary.
4: Open a demo account, follow the trading plan, demo test during this period. At the end of the period, review your performance. Was the trading plan effective, does the results reflect a level of consistency contingent to your trading plan?
The aim of this phase at the end of the 3 month period is to condition yourself to ONLY see your trading rules on the chart from an objective manner and remove fear and every other emotional attachment to trading. By becoming completely objective over this period of time, you have conditioned yourself to repeat the same behavior each day.
6 month Projection
1: Am I quitting my job first to start trading?
Ideally you should not, regardless of the performance of the conditioning phase. Nevertheless you should have a 6 month projection whether you quit your job or not, that caters for the most important expenses. This way it gives you enough breathing room to comfortably trade for 6 months.
Financing
1: Source of funds to trade- Savings, Inheritance, Prop Firm
Disclaimer: The content herein shall in no way be interpreted directly or indirectly as a form of financial advice. The opinions herein are strictly Educational ONLY!
Market Research-
1: History of the financial Markets
2: What purpose does the financial market serve?
3: Who are the key participants and what role do they play?
4: Drivers of the Financial Market and their impact
5: Types of Markets and assets available
First Step Basis-
1: Which Market(s) is/are suitable for you
2: What impacts that particular market and how to access that information regularly?
3: Tools required to begin-MT4, MT5, Ctrader
4: Regulated and unregulated brokers...know the difference
5: Basic knowledge of the Market and how to use the tools to trade e.g. leverage, swaps, and familiarizing yourself with the interface of your trading platform
Trade Plan Development
1: Strategy- what method will you be using?
2: Mentorship- Would I need a mentor to teach me, if yes who?
3: Identify my weaknesses that can affect me as a trader- Social, mental and environmental factors are to be considered
4: Strategy Refining- Back test, forward test, research, develop your strategy
5: Identify your goals and objectives from trading- ensure it is realistic
6: Create a trading journal- note every success and loss in your back test and forward test phase, learn why it has happened and what can be improved
Conditioning Phase
According to leading psychologists, it takes 21 days to form a habit and 90 days to break one.
Therefore, over a 3 month period, do the following:
1: Trading plan/Journal formulated must be tested. Trading plan must be aligned with your personality, type of trader and encompass every possible risk and money management.
2: Choose an asset from the market class of your choice. Scale back into price history for the past 10 years.
3: The goal is to condition your eyes and your mind to see your trading rules for the past 10 years. Repeat this process if necessary.
4: Open a demo account, follow the trading plan, demo test during this period. At the end of the period, review your performance. Was the trading plan effective, does the results reflect a level of consistency contingent to your trading plan?
The aim of this phase at the end of the 3 month period is to condition yourself to ONLY see your trading rules on the chart from an objective manner and remove fear and every other emotional attachment to trading. By becoming completely objective over this period of time, you have conditioned yourself to repeat the same behavior each day.
6 month Projection
1: Am I quitting my job first to start trading?
Ideally you should not, regardless of the performance of the conditioning phase. Nevertheless you should have a 6 month projection whether you quit your job or not, that caters for the most important expenses. This way it gives you enough breathing room to comfortably trade for 6 months.
Financing
1: Source of funds to trade- Savings, Inheritance, Prop Firm