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7 things things to do before trading for a living
You are reading this because you want to trade for a living one day.
There is no need to go into depth on the allure of trading. We all know the potentials and the opportunities that lay ahead of a full-time trader! The money, the freedom, 'pressing buttons' for money, not working for a boss...it's great!
What many do not know is what should be done before one should trade for a living. Here's a quick list. If you are thinking about becoming a full time real life trader, here are a few steps that might really help you along the way.
#1 Pay off as many debts as possible:
What do I mean by debts? I truly do mean everything. Credit card debts, personal loans or lines of credit, student loans, car notes, mortgages, whatever it is you have.
This sounds like a massive undertaking by itself. It is! And that's why it's my number one. The debts listed above are in priority order. If you still have a mortgage and you want to trade professionally, that's okay. Having 0 debt or very low debt will massively decrease your stress level, which will help you trade better. Plus, if you have a red month - you won't have massive debt on your shoulders and bill collectors hunting you down.
#2 Money in savings: Jerremy, you really expect me to pay off debts AND have money in savings? Yeah, I kind of do. It's tough, I know. But there's a great way to accomplish this. (Keep reading)
#3 A job: You're probably saying, "Wait, I'm confused?I thought you want me to quit my job before trading for a living??"
What I would love for you to do, if possible, is keep your current job and learn how to trade! Do both! Then, hopefully you'll have dual incomes. You can use your regular job to pay off all your bills and use your trading income to really cut the meat off of your debts faster! That way, you can accomplish the two most important pieces first.
What do I mean by debts? I truly do mean everything. Credit card debts, personal loans or lines of credit, student loans, car notes, mortgages, whatever it is you have.
This sounds like a massive undertaking by itself. It is! And that's why it's my number one. The debts listed above are in priority order. If you still have a mortgage and you want to trade professionally, that's okay. Having 0 debt or very low debt will massively decrease your stress level, which will help you trade better. Plus, if you have a red month - you won't have massive debt on your shoulders and bill collectors hunting you down.
#2 Money in savings: Jerremy, you really expect me to pay off debts AND have money in savings? Yeah, I kind of do. It's tough, I know. But there's a great way to accomplish this. (Keep reading)
#3 A job: You're probably saying, "Wait, I'm confused?I thought you want me to quit my job before trading for a living??"
What I would love for you to do, if possible, is keep your current job and learn how to trade! Do both! Then, hopefully you'll have dual incomes. You can use your regular job to pay off all your bills and use your trading income to really cut the meat off of your debts faster! That way, you can accomplish the two most important pieces first.
#4 Master yourself first: What does this mean?? Well, think very hard about this for a moment. Is there something in your life you've wanted to do and haven't done? Other than make more money and travel the world, I'm not talking about that. I'm talking about losing weight, finish college, go back to school for a masters degree, start your own lawn care business or buy a rental property.
You see, trading as a profession is so much fun and rewarding, but it requires traders who are very disciplined. You will hear me say a lot "you must master yourself first before you can master the market". Therefore, if you want to go on a diet and you keep failing over and over you must first master that before taking on trading.
Why?? Because discipline is so important in trading. It is like the holy grail of trading. Think back on your life. Do you flake out on a lot on things? Relationships, commitments, jobs, diets, house cleaning or normal responsibilities, as some examples. If that sounds like something that has challenges you in the past, do not beat yourself up about it. This is your chance! Step up, set a new standard for your life and master yourself! The disciplined trader is the profitable trader. But you have to be disciplined in all aspects of your life first. It unfortunately doesn't work the other way around.
#5 Learn to trade the markets: This is self-explanatory but important. The simple truth, find a teacher who is open, sharing, caring and realistic. There are tons of posers out there. Just use good judgment.
#6 Find a good community: This is quite self-explanatory. There is support in numbers! Have other traders help you.
#7 Create other streams of revenue: At reallifetrading.com every January is 'extra income month' where we discuss goals and plans to use other avenues to create additional income.
There are a lot of amazing traders out there! The vast majority of them do something else other than just trade. If you want to be among them, think of things you can do in your free time, when the market is closed, to generate additional monies. Maybe drive for Uber? Possibly sell something you create on etsy.com if you're crafty!? You could also sell some of your experience and talents on odesk.com, freelance.com or fiverr.com. Or perhaps you want to invest in my company, Real Life Trading! ;) Honestly, there are tons of things that can be done...but you want to have at least one going before you begin to trade for a living. Maybe it's dog sitting, or starting up a small side business that you can work on as well, like doing real estate transactions, notary work, ministering at weddings, or being a DJ even! Whatever it is, find something you like doing to generate additional income. If you want ideas about the above topics, feel free to email me any time!
