It’s a familiar tale told by thousands of traders from all backgrounds, all over the world. You get into binary options trading, you find you have a bit of a knack for it and you start to wonder whether you might be better off trading full-time. You take inspiration from online success stories, you buy right into the old ‘YOLO’ ethos to grasping every opportunity and you decide that yes…today’s the day you’re going to make it happen.
You’ve got a little cash on one side, you’re not exactly enamoured with your current job and are so into trading right now that the idea of working 20 hours per day actually fills you with a sense of joy. All of which points to one clear path forward – quit your job, focus on trading and begin writing your own success story!
The trouble is though, while all of the above sounds like a relatively irresistible fairy-tale we all want to live, it has a tendency for most to be exactly that…a work of fiction. In the vast majority of instances, these are the kinds of decisions that are driven by a combination of emotion, overconfidence and a sense of dissatisfaction with the way life is going by at the moment. Of course, meeting with any degree of success in your trading activities will also act as a powerful catalyst, but it’s still safe to say that in most instances, these are the kinds of plans and decisions that are based on logic, common sense and reality.
Now, this isn’t to say that many traders do not eventually find themselves in a position where to do anything but commit themselves to trading would be foolhardy. Instead, it’s simply important to acknowledge the fact that most stories that begin with “I quit my day job” do not in fact pan out as planned.
So for anyone finding familiarity in the above scenario and giving genuine thought to quitting their job to trade full-time, be sure to fully consider and acknowledge the following important points before actually going ahead and doing it:
Your Current Standard of Living May Be Affected
First of all, unless you are already making enough money by way of trading to support the lifestyle you have become used to…which is extremely unlikely…you need to take into account there will if nothing else be something of an extensive transition period. You may be trading relatively successfully already, but stepping things up to a higher level to such an extent that you can make a lot of money on a regular basis is something that takes serious time, effort and commitment. It can happen, but it isn’t something that’s going to happen overnight. Which in turn means that if you do quit your day job, you could be in for an extended period during which you’ll earn considerably less than you do now. Which is less of a problem if you are willing to make a few simple lifestyle changes, though more of a problem if it means you will not be able to pay your bills.
Jobs Don’t Come Easy
One of the most important considerations to bear in mind when embarking on these kinds of significant life changes is the way in which there is always the possibility it simply will not work. As such, it is always advisable to think carefully about what exactly might happen, should you reach the sudden realisation that your long-term trading plan simply isn’t workable. How easy or otherwise would it be for you to secure another job? Do you have any kind of backup plan in place? Are your savings sufficient to keep you going if you hit a period during which you earn little to nothing? It isn’t always easy to walk into a job these days – especially if you happen to be slightly older than the average job seeker.
It Takes Time To Become An Expert
There are so many ‘helpful’ guides and resources on the web right now which suggest that if you decide to go into business for yourself in any capacity, you should have at least three months’ worth of savings locked away before you do so. In the world of binary options trading, you can rest assured that it is going to take you significantly longer than three months to become an expert. More often than not, you may well be looking at any number of years before you are turning over the kind of profit you’d like. Realistically though, it is impossible to predict an accurate timeframe – the only certainty being that it usually takes considerably longer than most expect.
You Might Not Need To Trade Fulltime
Something else to take into account is the way in which if you find yourself in a position where you really are making all of the right moves all the time, it may not in fact be necessary at all to quit your job and trade fulltime. Some of the most successful traders in the world maintain a steady day job and limit their trading activities to their spare time. Rather than attempting to trade on a frenzied, non-stop basis at all hours of day or night, they instead focus on what they know and what they’re good at. They invest a sensible amount of time every week in their trading activities, sufficient enough to generate an extremely attractive secondary source of income, while maintaining the safety-net of traditional employment.
You Will Experience Losing Streaks
Contrary to popular belief, there isn’t a trader in the world that hasn’t gone through a relatively painful period during which nothing that seemed to go their way. It is an inevitable part of the trading process and one that you can rest assured will make its presence known sooner or later. It may last a week, it may last a month or you may find yourself after several months still not knowing why it is that everything you do seems to be coming out with a negative result. During these times, even a part time job can help ensure not only that you have a steady stream of income, but also that you don’t descend into a state of blind panic and make even more unfortunate decisions.
Your Emotions May Take Over
Until now, maybe on an entirely subconscious level, your decisions will have been influenced by the fact that regardless of the outcome, you still had the security of a regular source of income to fall back on. You may not realise it, but it’s true. It’s really not until you walk away from this kind of secure income that you suddenly realise the gravity each and every trading decision you make carries. Any given trade could for example mean the difference between being able to meet the mortgage payment this month or ending up in arrears. And when this is the case, there is a very strong possibility that your decision-making skills will be compromised by emotions. Trading as a sole source of income is fundamentally different to trading alongside a regular source of income. Even though you are cool, calm, collected and capable of making outstanding decisions right now, this could all change in an instant when you go full-time.
You Could Go Part-Time at Work
Rather than taking the nuclear option and quitting outright, it’s always worth looking into the possibility of reducing your hours in your current job to part-time. The specifics of your position and the company you work for will of course determine whether or not this is possible, but should you be able to cut down your working hours, this will give you plenty of additional time to focus on trading. What’s more, you will also benefit from the security and confidence that comes with knowing that regardless of what happens, you will still at least have some kind of income you can count on. Even if going part time in your current line of work doesn’t seem like a realistic option, it’s nonetheless worth exploring the possibility.
Then Again, It Might Be the Best Possible Decision!
Last but not least, in complete contradiction to the above warnings and potential downsides, turning professional in the world of trading means inevitably having to quit your current job at some stage. As such, it is simply a case of taking into account all of the above and asking yourself whether your current capabilities qualify you for career trading at a professional level. If you have considered each of the points above and still remain 100% convinced that full-time trading is for you, there’s nothing to say you cannot and will not be successful.
Just be sure to comprehensively evaluate the positives and negatives beforehand, after which you should know whether or not you are making the right decision.