Traders Union Has Shared Useful Tips On How To Become A Full-Time Trader In 2023
Forex trading is an exciting and money-making venture, whether you do it as a hobby or a full-time job. In this article, Traders Union (TU) experts will talk about becoming a full-time trader and its advantages and disadvantages. They will also explain how much you can earn.
Main steps to become a full-time trader
So how to become a full-time trader? There are different options. TU’s analysts will explain each one:
- Forex prop company
- Access to funding: you can get funding from the company to increase your capital.
- Zero risk: your risk is low because the company provides the money.
- Profit share: you get a part of the profits you make, which can boost your earnings.
- Growth potential: working with a prop company can help you grow your trading.
- Limited control: you might have to follow the company’s rules and strategies.
- Profit sharing: you’ll share your profits with the company.
- Risk of scams: be careful to choose a trustworthy prop company.
- Investing your own money
- Full control: you have complete control over your trading decisions and strategies.
- Unlimited earning: you can earn as much as you can without restrictions.
- Freedom: you can trade when and where you want for work-life balance.
- Risk: trading with your money has high risk, and you might lose your investment.
- Capital needed: you usually need a lot of money to start.
- No guaranteed income: unlike a job, trading doesn’t guarantee a stable income.
- Finding a trading job
- Steady income: you get a regular salary, reducing financial risks.
- Access to resources: companies provide research, analysis, and tools.
- Networking: you can connect with experienced traders and professionals.
- Limited control: your trading decisions may be limited by company rules.
- Limited profit potential: trading for a company may limit your profit compared to trading with your money.
- High pressure: trading jobs can be stressful with performance pressure and short deadlines.
Should I trade full-time?
Deciding to become a full-time trader is a personal choice, depending on your situation. Experts at Traders Union will explain the pros and cons to help you decide:
- Flexibility: full-time trading offers freedom in terms of where and when you work.
- Control: it gives you more control over your trading decisions and quick reactions to market changes.
- Higher profits: you have more time for analysis, which can lead to higher profits.
- Skill development: you can become an expert by dedicating time to learning and practicing.
- Focused approach: with no other commitments, you can focus on your trading strategies.
- Greater income potential: you can earn more by seizing more opportunities.
- Risk: full-time trading relies on trading profits and comes with financial risk.
- Isolation: you might feel lonely working alone without colleagues.
- Stress: it can be stressful with constant market monitoring and high-pressure decisions.
- Lack of stability: full-time trading lacks regular income and benefits.
- Potential for burnout: the intense demands can lead to exhaustion.
What is the possible income of a full-time trader?
Calculating a full-time trader’s earnings can be tricky and depends on many factors. TU’s experts break down the typical pay and profit-sharing for traders:
- Salary for trading jobs
The average trader’s salary in the US is about $86,543 yearly.
Pay varies if you’re self-employed, working for individuals, or a company.
Trading company salaries depend on trading success, not fixed pay.
- Profit share in prop trading firms
Prop trading firms split profits between the trader and the company.
The ratio depends on how much capital each contributes.
The median salary is around $81,000 per year in the US.
Salaries range from $50,000 to $151,000 based on experience and performance.
Forex trading can be a rewarding endeavor, whether pursued as a hobby or a full-time career. Analysts at Traders Union have provided insights into the steps to becoming a full-time trader. They have also highlighted the advantages and disadvantages of each way to help you make an informed decision.