The Wolf Den #389 - How To Become A Full-Time Trader
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This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. I really encourage you to check them out.Want to become a full time trader? Here are some thoughts to consider.Starting Capital (From Profits) - At Least 2X What You Need To Make Each Year To LiveAll too often I see traders attempting to trade full time without enough cash to support themselves. They end up trading short term and taking higher risks. This only results in making trading decisions based on the need to derive an income rather than on good trading techniques. Consequently, they end up exiting trades when they should hold or entering trades in the hope of a quick profit to "make their daily quota." You should never place yourself in the position of relying on emotional decisions as this is a trader’s greatest downfall.Your bankroll should come largely from trading profits earned as an amateur or part-time trader. There’s less emotional attachment to money made in the market than money made from hard work, although the value is the same. 2X is a very low estimate and would suggest at least 4X. If you need to make 100K to live and your bankroll is only 200K, that means you need to do 50% on the year just to pay bills and not build your bankroll further, not accounting for trading fees and expenses. 50% is extremely hard to achieve. In my mind, aiming that high is likely to make someone push harder than necessary on trades. I would suggest AT LEAST 4x what you need, as earning 25% over the year on your entire portfolio is more realistic, but still very difficult.The best way to set yourself up if you want to trade full time is to follow the golden rules of trading and investing - allocating 70 percent of your capital to a medium to long-term portfolio that will perform year in year out, holding 15 percent in cash allow for flexibility and buying dips, and allocating the remaining 15 percent to short-term trading to generate cash flow. This ensures you are protecting your capital by not subjecting the majority of it to high-risk trades. You can play with the numbers a bit, depending on the market, but this is a good starting point. Yes, it takes a huge bank roll just to target a 100K gain.Save A Year's Worth Of Living Expenses (Separate From Trading $)Conventional wisdom is that everyone should have 3-12 months of money saved in case they lose their job. An emergency fund. Those people have predictable and guaranteed income. Traders are likely to have major losing streaks and drawdowns, and income is nearly impossible to predict. For that reason, they need a much bigger safety blanket than the average person. 1 year is good, 2 years’ worth would be better. Let’s actually make it 3 to be safe. That is outside of your bankroll for trading.Achieve 2 To 3 Years Of Trading SuccessThe more years of success before going “full time” the better.Prepare And Plan To Lose For 1-2 YearsI know this sounds brutal, but it’s essential that you plan for the worst if you are going to become a professional. The game is completely different when you forego your other income to trade full time. It’s VERY HARD to win consistently, especially when you feel it necessary to be in the market all the time because it is now “your job.” Everything changes when you need to live on the money from trading because you are constantly pulling out funds to pay bills. This impacts your decision making and puts constant pressure on your bankroll.The reality is that a “full-time” trader is a misnomer. It’s very hard to work 40+ hours a week on trading - once you are good, you can easily identify trades that you want on the chart, set alarms, and walk away. I have found that being a part-time trader with additional streams of income (or even hobbies) is far better both economically and emotionally.Do you think you have what it takes, based on the ideas above?In This Issue:How To Become A Full-Time Trader Bitcoin Thoughts And AnalysisDAOs Are Incredibly Effective Fund RaisersFlorida Is Becoming A Bitcoin-Friendly StateBlockchainSpace - Infrastructure For PlayToEarn GuildsMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #389 - How To Become A Full-Time Trader
The Wolf Den #389 - How To Become A Full-Time…
The Wolf Den #389 - How To Become A Full-Time Trader
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. I really encourage you to check them out.Want to become a full time trader? Here are some thoughts to consider.Starting Capital (From Profits) - At Least 2X What You Need To Make Each Year To LiveAll too often I see traders attempting to trade full time without enough cash to support themselves. They end up trading short term and taking higher risks. This only results in making trading decisions based on the need to derive an income rather than on good trading techniques. Consequently, they end up exiting trades when they should hold or entering trades in the hope of a quick profit to "make their daily quota." You should never place yourself in the position of relying on emotional decisions as this is a trader’s greatest downfall.Your bankroll should come largely from trading profits earned as an amateur or part-time trader. There’s less emotional attachment to money made in the market than money made from hard work, although the value is the same. 2X is a very low estimate and would suggest at least 4X. If you need to make 100K to live and your bankroll is only 200K, that means you need to do 50% on the year just to pay bills and not build your bankroll further, not accounting for trading fees and expenses. 50% is extremely hard to achieve. In my mind, aiming that high is likely to make someone push harder than necessary on trades. I would suggest AT LEAST 4x what you need, as earning 25% over the year on your entire portfolio is more realistic, but still very difficult.The best way to set yourself up if you want to trade full time is to follow the golden rules of trading and investing - allocating 70 percent of your capital to a medium to long-term portfolio that will perform year in year out, holding 15 percent in cash allow for flexibility and buying dips, and allocating the remaining 15 percent to short-term trading to generate cash flow. This ensures you are protecting your capital by not subjecting the majority of it to high-risk trades. You can play with the numbers a bit, depending on the market, but this is a good starting point. Yes, it takes a huge bank roll just to target a 100K gain.Save A Year's Worth Of Living Expenses (Separate From Trading $)Conventional wisdom is that everyone should have 3-12 months of money saved in case they lose their job. An emergency fund. Those people have predictable and guaranteed income. Traders are likely to have major losing streaks and drawdowns, and income is nearly impossible to predict. For that reason, they need a much bigger safety blanket than the average person. 1 year is good, 2 years’ worth would be better. Let’s actually make it 3 to be safe. That is outside of your bankroll for trading.Achieve 2 To 3 Years Of Trading SuccessThe more years of success before going “full time” the better.Prepare And Plan To Lose For 1-2 YearsI know this sounds brutal, but it’s essential that you plan for the worst if you are going to become a professional. The game is completely different when you forego your other income to trade full time. It’s VERY HARD to win consistently, especially when you feel it necessary to be in the market all the time because it is now “your job.” Everything changes when you need to live on the money from trading because you are constantly pulling out funds to pay bills. This impacts your decision making and puts constant pressure on your bankroll.The reality is that a “full-time” trader is a misnomer. It’s very hard to work 40+ hours a week on trading - once you are good, you can easily identify trades that you want on the chart, set alarms, and walk away. I have found that being a part-time trader with additional streams of income (or even hobbies) is far better both economically and emotionally.Do you think you have what it takes, based on the ideas above?In This Issue:How To Become A Full-Time Trader Bitcoin Thoughts And AnalysisDAOs Are Incredibly Effective Fund RaisersFlorida Is Becoming A Bitcoin-Friendly StateBlockchainSpace - Infrastructure For PlayToEarn GuildsMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO