Introduction

Making a switch to full-time trading is probably going to be one of the most important decisions you will make in your life.

If you are thinking about becoming a full-time trader, you need to watch this video.

And why should you listen to me?

If there is any topic that I have full authority to speak on – it is this one because I have made that successful transition to full-time trading and investing.

After working in the corporate world for over 15 years, I moved on to become a full-time trader in 2016.

And I didn’t do it out of desperation either. I was in the US for over 10 years, working with one of the biggest companies in the whole world, right at their headquarters in LA. So, life was good.

And at the peak of my corporate career when I said I need to move on and pursue what I want to do in life. So, it’s not like I was out of options.

But the point of this video is not to tell my story but to share with you the learning I had while transitioning from a corporate job to becoming a full-time trader…what are the pros and cons, the main challenges and most importantly a 10-step roadmap of how it can be done.

Yes, it is possible. Though it might not be easy, it is possible.

So, whatever I am sharing is coming from years and years of experience and I am sure that is worth sharing with you all…so, please watch this video carefully.

Let’s start with the pros and cons of becoming a full-time trader.

Pros

• Time to focus on trading

For 80% of the time for work by the time you come home, it’s time with the family and the kids. So, you barely get an hour to focus on yourself and your future.

But now, it’s all yours- you will have more time at your hands than you would know what to do with

And more time means

• Higher probability of success

Since you are giving your best all your attention, all your energy, the focus is on trading and you would be driven to make it happen and all the ingredients of success are in place.

Also, since you’re in front of the market, you would be able to spot more trading opportunities, better trading opportunities, adjust your positions well and so on

• Non-linear income

The money you make is not proportional to your time but your skill. You can make more in 1 year than what you could have made in several years. Trading is a skill, right? Just like a doctor

But it takes time to get there…it doesn’t happen overnight

• What I like about trading full time is the Independence

Not being answerable to anyone. You are your boss. Nobody tells you what to do when to do it and how to do it. You decide when to work and when to take a break.

However, as Spiderman wisely said, “With great powers comes great responsibilities”. So, you have to structure your days and weeks in such a way that you’re making the most of that time.

Speaking of time…

• You will have much more time to be with your family

Spend time with kids, help them in studies, extracurriculars go out for vacation etc and no need to get permission from your boss. Spend time on other passions, go out for long walks.

• You will be doing something you like

How many of us are stuck in jobs where we don’t belong and they are not happy.…that are not their main strengths…but just because they are there at this point of time in their career, they are stuck in doing what they

and it’s not also about like it’s also about something that excites us, something we are passionate about, something that we get up every morning and feel like, it’s a new day…and not like…oh no…I don’t want to go to an office and you have to drag yourself to work

Cons

• Unstable income

Trading gives non-linear income. You can make more money in 1 year than you would in a job in 5 years. But what that also means is that initially, you want the same money that you were making in the job.

Sometimes there will be days and even weeks where you have to deal with continuous loss…

See, in your job, however bad you perform, nobody was cutting your salary, right? But not here…not in trading…you make a mistake, you have to pay for it

Initial few months and even years, you can not depend on the trading income to pay for your monthly bills, EMI, rent, kids school fees etc.

• Family pressure

And because the income from trading is inconsistent, there is always some pressure from the family …. whether you are making a big mistake of leaving your well paid, stable job and doing trading.

Then explaining to your friends and relative what you’re doing can also be tricky.

remember, in India, trading is not considered a profession, at least not a well-respected profession…coming from a South Indian family, I had to face a lot of questions, skepticism and even ridicule in the initial days of my trading

They don’t do it anymore because success speaks for itself, but then I had to endure that for a few years

• Psychological issues

Now that you’re trading full-time, you will notice all kinds of psychological issues.

There will be the temptation of taking higher risks, over trading, your mind will start playing games against you…all that family pressure doesn’t help either…so you need to cope up with that

• Isolation

No one talks about this aspect. I was in a job where my calendar was jammed packed from 9 am to 5 pm. It was like I was working between the meetings. Coming from that environment, I felt completely different.

At first, it was good …but later, I start missing the crowd and also felt the loneliness of trading all alone.

• Health Insurance

Till the time you were in a job, health insurance was taken care of for you and your family by the firm. However, now that you are on your own, you also have to plan for any untoward eventualities and this means an additional dent in your pocket.

• Going back to the job market and explaining the gap

In case the transition to full-time trading doesn’t work out, you have to go back to your previous job. Explaining the gap can be very hard and also the embarrassment of failure can be hard. Further, you might not get the same salary, position or benefits you received before leaving the job. People in the firm might also mock you indirectly for following your passion which might affect you psychologically.

Conclusion

Hence, always be prepared for the worst-case scenario wherein you have to explain to your new employers.

Our objective is to welcome more traders to the stock market and to ensure that they take it up as a full-time career. In our next video, we will share a 10 step strategy to transition from a full-time job to a career as a trader.

All the best.