Discussion: Can Full-Time Trading Help You Achieve Your Financial Freedom Goals?

Markets Discussions
1

I’ve encountered novice traders with less than two years of experience contemplating transitioning to full-time trading after experiencing success in certain trades. Their primary motivation often revolves around the desire to retire early and attain financial freedom, particularly since they have primarily been in a bullish market and have faced minimal major setbacks.

What do you believe the path to full-time trading should entail? What should the Risk-Reward Ratio and achieved corpus be?

Looking forward to your views @t7support @Champion_Trader @thisisbanerjee @pavz @viswaram

2 Likes
2

Well, the answer would be slightly in a different direction, or rather, the correct way of thinking.

Trading and/or investing is probably the most attractive business that there is on the planet, but it is like Point Zero in the Mount Everest.

Everybody wants to reach Point Zero, but after a certain point the oxygen becomes so thin, the frost gets into your lungs, and the respiratory system is pushed almost to point of collapse.

People who push further that point, 99% of them collapse and die a painful death, however that Top 1% doesn’t break and keep going because in today’s world, it’s easy to confuse genius with madness given so many mediocre people are out there. Mediocrity is the new normal.

Finally, when that Top 1% reaches the Point Zero where oxygen is so thin that you barely breathe at all, that is true pinnacle a trader could be, or rather even be called a trader.

Give it your all, study every indicator, every style, every trader out there. Understand both quantitatively and qualitatively and mould it with your personality.

Summary: Risk/Reward is specific to every individual. Mindset is unique to every individual. You have to develop your own edge, well, to find your edge. Stop listening to outside gyaan and validation. Do what floats your boat, either sink or swim, but with outside gyaan you will definitely sink.

P.S. - I know this is not the answer you are looking for, but this is the correct answer.

1 Like
3

I strongly advise against leaving your primary income source to pursue full-time trading until you’ve experienced a complete market cycle, encompassing bullish trends, corrections/sideways markets, and bearish phases.

When considering risk-reward ratios, focus not just on the conventional risk reward ratio but also on the adjusted risk-reward ratio( [average gain×winning probability]/[average loss×loosing probability] ). Aim to maintain it at or above 2 to ensure adequate compensation for the risks undertaken.

In terms of corpus, I recommend having a minimum of 25 times the amount you aim to earn monthly, assuming a monthly return of 4%.

Above all, equip yourself with a proven and backtested trading strategy, coupled with a resilient mindset and military-like discipline to navigate the challenges of full-time trading successfully.

1 Like
4

What an interesting point of view and an even more interesting example.

Just in case here are a few data points that I found about the deaths on Everest:no_mouth:

Everest
Everest712×666 368 KB

Average Everest Deaths
Average Everest Deaths711×426 173 KB

For a detailed articled read here: Mapped: The deadly geography of Mount Everest - Big Think

2 Likes
5

@RahulDeshpande Precisely, you’ve hit the right spot. It’s actually closer to reality that I can get. Death Zone is the medal of honour and Point Zero is the medal of accomplishment. Anything below the death zone is just not acceptable to become a trader.

2 Likes
6

Trading is a field where you cannot emulate another person’s path & decisions. Going full-time trading is a wonderful thing but it also brings loneliness.

The number one reason youngsters join corporates after graduation is to have a nice time with friends, get a decent paycheck, and travel. When you do full-time trading all these 3 mentioned perks are gone.

But if someone is disciplined and would prefer to go the distance, trading is the right opportunity.

I did not become a full-time trader by chance, I did by choice. I had no other way out, so I had to make it work. Feeling glad I went full-time though.

3 Likes
7

Correct. Loneliness is a big factor for me. Travel is never the issue, last year my biggest day was when I was chilling in Christophe Chez Cafe in Gokarna Beach Karnataka.

In fact, IMO, you can earn from anywhere and that’s the biggest trading flex. Although, you’d not be at ease without large screens. :sweat_smile:

2 Likes
8

In my opinion trading is played well if

  1. One has a sufficient risk capital and that capital itself or returns on it is not needed for daily maintenance or emergency care.

  2. One has a well tested well rounded mechanical system that one can follow day in day out within their personal or professional constraints.

It’s highly unlikely that a 2 yr experienced novice trader can claim to have any or both of the above.

Always have a primary income other than trading. Then start trading as a side hustle. Start small and first figure out whether one has the skill to be successful here along with the passion to persist in this domain. Then scale and if the corpus becomes big enough with time may be then leave the primary job and go full time trading.

The right corpus is subjective. It depends on the kind of life style one aspires for.

4 Likes
9

@thisisbanerjee @viswaram @t7support
Indeed, well articulated :100:

1 Like
10

True, trading can be a lonely profession. The pressure, victories, and defeats all must be managed alone.

Often, many fail to grasp the degree of discipline, patience, and determination required to succeed as a trader.

1 Like