What is the life of a trader like?

Those who dream of a career in speculative investing ask themselves this question. The question is more than legitimate, as we are not talking about an activity to be taken lightly but one that, on the other hand, significantly engages the days. However, around the concept of "Trader's life," there are some prejudices, often spread by books and movies. This is not a trivial matter, also because there is a concrete risk that people approach trading because they are enchanted by a lifestyle that does not correspond to reality and that, in the worst case, is even harmful. In this article, we offer a small glimpse of the life of a trader, the real one, which investors worthy of being called such live daily.

The distinction between full-time trading and part-time trading

Before describing the life of a trader, it is important to make a clarification. Below we will talk about the lifestyle and habits of those who frequent the market on a full-time basis. Also because it is obvious: those who trade occasionally or in any case do not place it as the main activity of their existence, "preserve" much of the habits that characterize ordinary people. Does this perhaps mean that the only correct way to trade is full-time? Not really. It depends on one's goals and what one is willing to sacrifice to achieve them. Certainly, those who engage in part-time trading do not have the goal of making trading their primary source of income and, indeed, in most cases, retain a job, whether employed or self-employed. Certainly, if we want to talk about "Trader's life," it is necessary to look at those who are truly traders, and full-time. Therefore, everything you will read from here on will refer to this category of people.

What is the life of a trader like?

Is a Trader's life a good one? Actually, it's not certain, just as it's not certain that it's a "bad" life. Certainly, we are far from the splendor portrayed in movies, TV series, and books. The trader, the real one, the winning one, is an individual who carries out a complex and therefore intellectual activity, which can produce a certain income and determine a certain economic prosperity. However, he has no time to waste on vacuous and too frequent amusements. In any case, here are the aspects that characterize the life of a trader.

Planning

The life of a Trader is based on the dynamics of planning. "The clock" and time management in general assume a glaring importance. The reason is simple: time is scarce, and there are many things to do. Consider, for example, that the analysis activity, which is separate from the actual operation, must still be carried out more or less daily. Moreover, times are marked by market dynamics. The day, in fact, can be divided into various phases, which are characterized by greater or lesser liquidity, by a greater or lesser presence of economic actors. In this sense, the "temporal" elements to keep an eye on are also and above all the intersections that occur between the various financial centers.

Solitude

You should not interpret the term solitude as something inherently negative. We are certainly not talking about social or emotional solitude. Professional solitude, that's it. The reference is clear, and it is to the "working" conditions to which traders are subjected. Speculative investing, in fact, is a solitary activity, which obviously does not involve collaboration with other people. A trader, very simply, has no colleagues, a condition that roughly all players share but which can still weigh emotionally on some specific personalities. This does not mean, however, that the trader cannot establish bonds, even of mutual interest, with others, as demonstrated by the more recent approaches of Social Trading and Copy Trading.

Commitment

The life of a trader is not exactly a life of suffering. Certainly, we are not talking about a physically strenuous job, nor an activity that poses health risks. Nevertheless, there is a need to put in a great deal of intellectual and mental commitment. Those who practice full-time trading are called upon to exercise advanced skills, deploy a strong willpower, and make efforts. Trading is a complicated activity from many points of view. Of course, if you think of speculative investing as a way to produce easy money or, worse, a tool to generate passive income, you are literally off-road. Even the most "automatic" forms of trading, such as the one based on Expert Advisors, require constant monitoring and programming activity.

Stress

It is well known that stress is a recurring element of so-called "modern" life. After all, nowadays, who does not experience stress? Now, all this also applies to traders. Indeed, it applies to an even greater extent. The issue revolves around the risks to which the individual is continually exposed while practicing speculative investing. Risks that obviously concern the economic side. No matter how competent a trader may be, the market can always turn against him and cause a loss of capital. Now, living with this sword of Damocles is not easy. Hence the perennial emotional pressure that a trader has to endure. Over time, everyone learns to manage their emotions and especially to manage stress, to ensure that it does not affect the quality of their trading activity. Nevertheless, stress can be considered a strongly characterizing element of the practice of speculative investing and, in general, of the life of a trader.

Freedom

Finally, an unequivocally positive trait. The trader is, generally, a completely "free" individual. The reference is to the typical condition of all full-time traders. They are usually free from constraints, from the dynamics that impose every day on ordinary people to deal with this or that person, with this or that situation. All this, of course, within the perimeter dictated by law and common sense. This freedom, of course, also materializes through an almost infinite margin of discretion regarding the management of one's efforts and commitment, also and above all from a time perspective. In essence, it is the trader who decides when to start operating and when to stop, what to invest in, and how much. For some, it must be said, this freedom goes a bit to their head or, conversely, causes some anxiety. However, it should be taken into account that in trading, as in life, the other side of freedom is responsibility. In this case, towards oneself.

The startup mentality

This trait actually concerns mainly traders who have recently started a full-time speculative investing activity. The crux of the matter is precisely the "recently." It can be said, in fact, that most new traders, at least those destined for success, are characterized by a mentality very similar to that of startup entrepreneurs, of those who start a business almost from scratch. In parentheses, by "new traders," we mean those who have been operating for less than 2 years. The reason is simple: like any entrepreneurial business, trading activity also tends to generate its fruits further down the line. At the beginning, the individual is called upon to put in the maximum effort and all the commitment he is capable of. This reconnects us to one of the most important and most emblematic dynamics of trading activities: the results, if they arrive, do not arrive in the short term. In fact, many have to wait several months before looking with satisfaction at their account.

Why it is important to know all this

It almost seems that the life of a trader is not all rosy. After all, what activity is synonymous with a "golden/heavenly" lifestyle? As much as you may be disappointed by these truths about the lifestyle of a full-time trader, consider yourself satisfied with the discovery. Knowing what awaits you is the best way to look at the goal with renewed self-confidence and with a sense of realism capable of optimizing your efforts. After all, having a wrong idea of the goal is the best way to throw in the towel in no time.