Trading for a living successfully can be done. It does take careful planning and preparation. In this episode of the Trading Performance Podcast we provide an excerpt from The Trading Triangle course where I teach traders about creating successful trading businesses.
Click here or in the video below to learn more!
Since 2006 John Locke has been coaching traders and supporting their dreams to create thriving trading businesses. He provides tough love and support to convey realistic, obtainable trading expectations. In this episode he recounts his typical discussions with a trader which goes something like this:
John: “How can I help you?”
Trader: “I want to trade full-time.”
John: “Ok, tell me about your strategy. What are your results so far? How have you been doing?”
Trader: “Well you know I started doing the “X” trade two years ago
and I haven’t lost in six months! I did 50% a year for the last two years.”
John: “Great! What’s your plan for when your strategy stops working?”
Trader: “………Silence…………What do you mean? It has always worked.”
John: “Really? How do you know?”
Trader: “Well it worked for six months.”
John: “How do you know it works for more than six months?”
Trader: “Well I back tested it.”
Unfortunately, traders just make assumptions that whatever they’re doing is going to keep working. That assumption does not serve traders nor does it serve any business.
If the pandemic has taught us anything it is that we really need to be ready for any possibility.
Here is a list of questions a trader should carefully consider when and if they want to trade for a living:
- What is your net worth?
- How much of your net worth is liquid?
- What are your yearly expenses?
- How much money will you trade with?
- What are your expectations?
- What are your other sources of income?
These questions are important, as is budgeting. Budgeting in a business is very important, especially if you are going to be trading for a living.
As a trader you will need capital to produce income. In other words, having money is necessary for you to make money. Managing your capital is imperative in your trading business.
Want to learn more about trading for a living successfully? You can find out more in Part 2 on the next Trading Performance Podcast episode AND in a FREE public webinar called “3 Essentials To Creating A Successful Trading Business”. Click here to register!