Become a Full Time Trader Part I

Professional full time trader (Goal: Trading for A Living).... Sounds cool too, right? Right. Full time traders in the minds of most people, including myself (perhaps you too) are:

- No need for office work.

- Just work at home, only trading, flexible time.

- Rich.

- Have a lot of free time.

- Have large capital for stock trading.

- You can vacation at will.

- Provides freedom of time and place.

The figure I admire: although he is an investor, not a trader is Lo Kheng Hong. He only lives by investing in stocks and he can go abroad twice a year. Although not a trader, but the context here is FULL TIME. Maybe if he's the right term, he means full time investor. But, it proves that trading stocks full time, can indeed give you freedom, flexibility.

All of that is true. That is the job and joy of a full time trader. Well, if perhaps any of you have aspirations to become a full time trader, you certainly have to prepare a lot of things, not only knowledge, but discipline and psychological factors you must be ready. So, in conclusion, to become a full time trader like the points I mentioned above is not easy.

Then you steady yourself: "Sir, I have decided to become a full time trader, what should I do next?"

OK, if you have decided to become a full time trader, then I think you are smart. Smart at what? In terms of analyzing market conditions globally.

A full time trader (should) understand when it's time to enter the market - when it's time to get out - when it's time to wait and see. For example: at the end of April 2015 when the stock market began to plummet and a lot of bad news began to emerge about the decline in our economy, the Greek debt crisis, China's economic slowdown, what should a full time trader do? He should get out of the market immediately (sell his shares), then wait and see until the market conditions are bullish, and the bad sentiment subsides.

If you enter the market when the JCI plummeted in 2015 for day trading, then your decision is WRONG. Why? Because a lot of stock prices have been discounted, it turns out that the prices are still going down tomorrow, and going down even more the next day. If you think that today's BBRI share price has been discounted (cheap because it keeps dropping), then you buy it, then the price keeps dropping, your shares will definitely 'stick'

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Well, now back to the question earlier: "I want to be a full time trader". Becoming a full time trader looks good, but it's not as easy as you think. There's a lot you should consider.

First. Provision of technical analysis knowledge. Certainly. I think it's clear. If you want to be a trader, you must have good trading skills. Not only specific stock analysis skills, but you must be able to analyze global market conditions, including sentiments that have a strong influence on the JCI. As I explained earlier, you have to understand when it's time to enter the market - when to get out - when it's time to wait and see.

Flying hours greatly affect your ability to become a full time trader. My advice, if you want to become a full time trader, your experience trading in the capital market must be above 5 years. So that you have the opportunity to study market conditions in various situations.

Second. Full time traders need big funds. Being a full time trader means that you have to be prepared for large capital, because a full time trader mainly earns from trading itself, so a capital of IDR 10,000,000 or IDR 25,000,000 may be too small. Full time trader, my advice is a minimum capital of IDR 100,000,000. Remember, the bigger the capital, the bigger the return. If you want to earn more than IDR 5,000,000 a month, then my advice is to put in more than IDR 100,000,000.

If you decide to become a full time trader, then you have to calculate how much you need in a month and the level of profit you can achieve in a month when you carry out daily trading activities. So let's say, your monthly cost of living is 5 million, and since you are an expert you can make a month's trading profit of 7%. With this calculation, you have to spend IDR 71,500,000 (5 million / 7%).. But, of course you can't live with a break event point (income = cost). So, an investment of Rp. 71,500,000 is not enough, because this capital is only used to meet your living needs.

Meanwhile, you definitely also need emergency costs, investment costs, other necessities. Of course, you have to put in more funds than that. Especially if you read the fourth reason, of course the funds are Rp. 71,500,000 assuming your monthly expenses are 5 million and you can get a month's return of 7% very and very less. So, that's the reason why you should deposit a minimum of IDR 100,000,000 if you decide to become a full time trader with the aim of Trading for A Living.

Third. Execution discipline. Because the capital must be large, then you must be disciplined to cut losses and take profits. Don't let you be undisciplined in the cut loss rules you set, the stock drops a lot, then you cut the loss and the loss is huge, then you cry and think the stock is a gamble. Likewise, when you set a take profit at that price, you also have to be disciplined to do it.

Fourth. Are you psychologically prepared, if there is no income? You need to know that being a full time trader, means that you have to be prepared if there is no income within a certain period of time? Whoa, what does that mean?

What I mean is this, I explained earlier with the example of the 2015 JCI that you have to understand when it's time to enter the market - when it's time to exit - when to wait and see. Well, if our stock market plummets, that means you shouldn't enter the market. If the stock market plummets like in 2015, up to 6 months (April - September), especially when the JCI is like 2008, then you must even be prepared to have no income at all during those 6 months, it could even be more than 6 months. Are you ready?

In bullish market conditions, you can get returns tens of times in one month. Moreover, as a full time trader who (supposedly) already understands the stock and market conditions, getting a profit from IDR 100,000,000 in funds to IDR 500,000,000 in a month is not impossible. But if the market is sluggish, you even have to be prepared for no income from trading.

Then the solution: you have to wisely manage the profit you get. If you get a lot of profit in a bullish market condition, then don't be wasteful. Leave your funds at least IDR 80,000,000 from your profit for precautionary reasons: If the market is sluggish, you already have savings. If the market is in a sluggish condition, don't be tempted to enter, especially to take fried stocks with no clear direction of movement.

From my explanation above, it is clear and very clear that being a full time trader or the language is Trading for A Living is easy and difficult. Unfortunately, there are so many newbies who don't do anything, whose knowledge is still a bit already looking forward to getting doubled income from trading. Even with a small amount of capital, many beginners expect to earn tens of times in a month.

If you want to become a full time trader, you must fulfill these four aspects. What about beginners? If you are still a beginner, don't be a full time trader. First, mature your analysis and your psychology, then become a full time trader.

And of course, if you don't have all of that, or even miss one aspect, then confine your intention to become a full time trader and fulfill those aspects first.

Read next post: Become a full time trader (Part II)

Gotou Sakurajima A female trader from Japan who now lives in Jakarta, Sakura loves Forex and Stock Trading since moving to Jakarta and Sakura loves to write articles about Trading.