I have been trading for myself for more than ten years now and it has been a very rewarding experience. However in this article I want to discuss why you shouldn’t be in a hurry to give up your day job in order to become a full time trader or investor.
I was in a unique position because I basically had nothing to lose. I had left university a few years earlier, but failed to find a position as an accountant in the years that followed. So I ended up working in a factory, saving up loads of money and trying my hand at becoming a full time stock market investor. If it didn’t work out, I could just go back to my old job or get a similar job elsewhere.
Some people do not have this luxury, however, because they actually have a pretty good job to begin with. When you’re in this position, you will often have a pretty good pension, various health policies and the security of being able to pay all of your household bills and enjoy a certain lifestyle.
So before you give all this up, you have to be absolutely sure that your trading career will make you a lot more money in the long run. Unfortunately this is almost impossible to guarantee with any certainty.
The trouble is that people will often stumble across a winning strategy and think that they have found the holy grail that is going to make them extremely wealthy. For example they may have spent $2000 or $3000 on a high end forex course that gives them several profitable trading strategies. They may also have purchased some trade alert software that alerts them to winning trades automatically.
That is all well and good but there are no guarantees that the strategies will continue to be profitable in the years to come. Market conditions can change very easily, and they can quickly render your profitable systems to be completely useless.
I know this to be true because I have had to change and adapt my new systems many times over the years. For instance some forex strategies will work well in highly volatile markets, but when the major currency pairs get stuck in sideways trading ranges, they are no longer profitable.
So the point I want to get across to you in this article is that you should never be too hasty in giving up your day job. I was lucky in that I had absolutely nothing to lose, but most people do have quite a lot to lose by giving up their job.
The best thing to do is to try and do both if you possibly can. That way you have two income streams coming in, and you have a lot less pressure to try and make money with your trading strategies.