The Hidden Side Effect of Living Off Trading

Living off trading: for some, it's a goal to achieve; for others, it's an impossible mission. However, before attempting to become a full-time, exclusive trader, it's important to know all the implications of life as a professional trader. Very often, the issue is treated superficially, and this is due to the advertising campaigns of some brokers who are not well-equipped from an ethical point of view. The risk is that budding traders gain an unrealistic perception of the phenomenon, and they imagine a trader's life different from what it actually is. The issue mainly concerns one aspect. We discuss it in this article, also offering an overview of the requirements to be obtained gradually to achieve the goal of living exclusively from trading.

Living off trading, a complicated goal

Let's make things clear: living off trading is a very complicated goal to achieve. In reality, it's complex to make any activity one's main means of sustenance. In real life, this usually requires a cycle of studies, some period of apprenticeship, certainly many years, and a lot of effort. Trading is no exception. The truth is that you can't improvise as a professional trader overnight, not even from one month to the next. Even in this case, or perhaps even more so, qualities such as commitment, determination, and a certain intelligence in knowing how to fully exploit one's mistakes and learn from them are necessary. All this is exacerbated by some dynamics specific to trading, which are not found in other areas of professional and daily life. Living off trading could be more complicated than living off any other activity, be it professional or artistic. The reason is, all in all, intuitable, especially by those who have already started operating in trading. It's a complex activity, dominated by a certain randomness, certainly characterized by an unpredictability that is very rare to find in any other. The trader is forced to compete not only with his colleagues, albeit in a completely indirect way, but also and above all with that seemingly irrational leviathan that is the market. The prices of any asset, its movements, its performance, are the result of the intersection of numerous dynamics and are determined by just as many factors. It's no coincidence that many throw in the towel, perhaps after a few months of suffering. It must be said, however, that for those who manage to keep the bar straight and perhaps endure the initial frustrations, the prize, if we can call it that, is quite conspicuous. That said, the amount of risk that trading exposes has little to do with the amount of risk that the vast majority of "human activities" expose, including entrepreneurship. Although the road is long and fraught with obstacles, it can certainly be traveled. The goal of living off trading is potentially within everyone's reach. However, it's a good idea to think twice before embarking on this path, precisely because of the difficulties we have just described.

What happens when you "live off trading"

However, there is another step to take before attempting the path of full-time trading. This step consists of understanding what "living off trading" really entails. In fact, many beginner traders, just as we mentioned at the beginning of the article, are dazzled by an image of the professional trader that may not adhere to reality. Moreover, many start from needs, however specific and circumscribed, that may not be satisfied even if the goal is achieved. These needs have, in most cases, to do with the concept of freedom. There are not a few who "throw themselves into trading" because they are oppressed by a dependent employment relationship that leaves no room for creativity or personal growth. In this perspective, living off trading means living freely, without a boss, without obligations. In reality, this image only remotely approaches the truth. Certainly, the trader does not have to answer to a superior; his activity is not locked within office hours. However, from here to associating the life of a professional trader with the concept of freedom is a stretch. The truth is that the professional trader has many constraints, albeit radically different from those of the classic employee. These constraints are dictated by the need to protect one's assets and, if possible, make them bear fruit. A necessity that can give rise to obligations even more severe than any professional relationship. Moreover, trading activity is so complex and tiring that it can be fully prepared for any work and professional activity. Even in the case of speculative investment, in fact, it is necessary to profuse advanced skills, commitment, determination, even resistance to physical and mental stress. In short, those who live off trading do something very similar to a professional activity. After all, there is nothing to be surprised about: those who live off trading make trading their main source of income, just as any worker makes his job the main source of income (in most cases).

A balanced approach

Therefore, the advice is to inquire about the conditions and habits of professional traders before aspiring to become one and moving in this direction. Another piece of advice, to be put into practice if you are actually about to achieve this goal, is to treat trading just as if it were a job. This means separating private life from trading activity both mentally and temporally. In essence, it is good to set a limit beyond which trading must leave room for social life, for managing one's interests, for leisure. Just as it happens for any other professional activity. The risk, if you do otherwise, is to quickly deteriorate your quality of life and to bear unbearable stress loads for any human being. In short, take trading activity... seriously.