Day trading has become popular in the past few years. that it Its popularity has grown rapidly during COVID-19 pandemic As more people spend most of their time at home. They also have a lot of money, thanks to low interest rates and Giant stimulus.
This growing popularity has led many people to consider pursuing a professional career as a tradesman, giving up their standard jobs. Is this really a good idea?
In this article, we will compare The difference between being a full-time trader and having a standard 9-5 . job.
How to be a part time trader
There is a common question among most people about How to be a part time trader when you have a 9 to 5 job. This is a common thing made possible by the fact that most of the online brokers provide easy to use mobile apps.
It is not uncommon to see many full-time employees trading with their Robinhood accounts during their breaks.
In addition, being a part-time trader is a viable option Because of Usually the financial market is open for a longer period.
The Forex Market Open 24 hours from Monday to Friday while the encryption The market is open for 24 hours, Seven days a week. Therefore, as a part-time trader, you can easily trade after work.
Most importantly, in the United States, brokers offer Pre-market and extended sessions for dealers.
Therefore, you can set your trading settings before going to work or after the market closes. So here is a comparison of how to be a full time trader versus getting a full time job.
Related “ How to trade part time when you have a full time job
Why day trading is better than a 9-5 job
Before proceeding with our analysis, you have two notices to give you. Must start trading/transition into a full time trading career Only if your passion for markets strong enough. The work of a day trader is hard work that requires commitment and perseverance.
In addition, many of the points that we are going to include are subjective, but they It also depends on the approach You will have with your business.
More flexibility as a trader
Day trading is more flexible than being a full-time employee. There are several ways in which this flexibility manifests itself.
For example, as a full-time trader, you can be flexible on the assets you are tradingAnd the The strategy that you use and The time you trade.
Let’s talk about assets. Here you can decide to trade:
You can also focus on trading options, futures, and synthetic assets.
Are you interested in stocks? Again, there are a lot of sectors to choose from… and each industry has a huge number of different stocks! That’s why many traders try to focus only on Most active stocks on a certain day.
Forex, commodities, and other assets also offer many different solutions (and you certainly can’t monitor all of them).
on me timeyou can focus on trading for Just a few hours in a day. In fact, many Day traders trade for less than two hours a day.
They do this by performing technical and fundamental analysis and then setting their own trading settings. Finally, they open their trades, set Take Profit and Stop Loss, and then wait for their trades to develop.
Therefore, there is a lot more flexibility when you are a full time trader than there is a 9-5 job. Most people who have jobs tend to do the same thing on a daily basis.
Opportunity to grow
Another reason why day trading is better than getting a 9-5 full time job is that there is Opportunity to grow. While many jobs offer clear paths to career growth, the truth is that Most people do not experience this growth. Sometimes, most people find themselves in the same situation for decades.
with tradethere Many ways to grow your career.
For anyone, it is possible grow your account From $10,000 to millions in just a few years. It is clear that this will Depends on how successful you are as a trader.
At the same time, if you are a professional merchant working for a floor owner, your success can be seen Move on to become a successful landowner on your own. At DTTW™, we’ve seen many people go from being floor owners to becoming independent operators themselves.
Another way to grow is to transform your trading Practical in a home office or hedge fund. This is a process where you use your success as a trader to raise capital from other people and then take a fee. We’ve seen a lot of people do that.
Related “ How to become a successful trader start small
Balance life with work
Work-life balance is important. Unfortunately, many people who work for companies do not have this balance because they spend a lot of time in their offices.
While this usually attracts some extra pay, the truth is that many people spend a lot of time at work. Lots of parents also have very limited time with their families.
Day trading is the opposite. First, most people trade daily when they are in their home office. As such, they usually spend a lot of time with their families. also, because of flexibilityThey can attend school events for their children and even set aside some of their days to spend time with them.
warning. What we have said is true in most cases, but it is up to the trader not to fall into some scam traps:
- FOMO. The fear of missing out on a good deal can lead to spending all of your time waiting for a catalyst that never comes.
- Over-trading. The fear of missing out on a good profit opportunity often results in us trading much more than we had planned.
- revenge trading. Suffering from unexpected losses can undermine our minds, blow up all our plans, and try to recover that loss immediately, we often rely on instinct rather than analysis. You can imagine the potential damage.
- Greed. And the opposite is also true. Winning a day or more may lead us to desire more and more profits, removing this balance between work and free time.
continuous learning
Another benefit of being a day trader instead of having a full time job is that You will constantly learn In the market. This has been noticeable since then Most days are never the same.
Sometimes, there will be some geopolitical events that will affect the market. In other periods, there are events such as Federal Reserve Board decisionsAnd the profitsand corporate advertisements.
Unfortunately, not many people in the corporate sector have room to learn all the time. For example, an accountant will constantly repeat the same process after a year.
If continuing education and studying new material scares you, then perhaps trading is not the right profession. In this case, you may still consider becoming a long-term investor.
Pros of the 9-5 . function
still, Having a full-time job has its pros. Or not, Earn a certain amount of money Per month is a good thing Because it helps you plan for your future. For example, you can comfortably take out a mortgage because you are confident that you will receive your monthly salary. With trading, nothing is guaranteed. Some months will be positive while others
Second, many companies offer a Vacation period. As such, you can spend your free time traveling the world and reconnecting with friends.
Third, getting a job is a A good thing for social reasons. As a freelance trader, you will often work on your own. On the other hand, as an employee, you will have the opportunity to interact with your colleagues.
Summary
In this article, we looked at the benefits of being a full-time trader compared to being an employee. As you have seen, there are pros and cons to both.
However, in our experience, We believe that there is a hybrid Being a full-time employee and part-time trader is a good thing for most people to start their career.
With this approach, you can then move on to becoming a good full-time trader.