Thread by @stocksnipa

🧵Converting to Full Time Trading Thread🧵

Many traders struggle when they take the leap to Trading full time. This thread is dedicated to some of the common mistakes that I see during the conversion process.
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(1/14) Taking the leap can be pretty nerve racking and emotional in the beginning, especially if things aren’t going well. It’s important to believe in yourself and maintain confidence.

(2/14) One of the most typical mistakes I noticed is traders over-trading when they become a full-time trader for various reasons.

(3/14) I have often seen new Full-Time Traders take additional trades or set ups that don’t meet their typical trade criteria because they now have more time to trade.

(4/14) Just like I said on the @tradingcamppod, THE MARKET DOES NOT FAVOR FULL TIME TRADERS. It is still the same market with the same rules regardless of your involvement.

(5/14) Generally after leaving a full-time job, people find themselves with an abundance of time. It is important to develop a routine that fits personal needs, trading style, and cooperates with other commitments.

(6/14) It’s important to know when to trade, when to size small and when it’s best to just watch. Different trading styles will prevail in different market conditions. Traders must know when their trading style is applicable.

(7/14) I personally take a break and get lunch regardless if I am green or red. Stepping away gives me a break from charts and can sometimes help me think about things more rationally and see different perspectives.

(8/14) I personally like to look at my losers over the course of a month. Sometimes traders focus on the winners too much without noticing the losers. I personally think cutting this number by as little as 1% could have more than anticipated impact.

(9/14) It’s important to preserve capital for both FT and PT traders. “You can’t shoot a gun without any bullets” - @MandoTrading

(10/14) I like to pay myself at the end of every week. I like to withdraw profits every Friday, starting every Monday off with the same account value. I use this profit to pay bills/cover expenses, buy commons and pay taxes.

(11/14) Tax is another large change in the conversion process. Many people are used to receiving a tax return, profitable traders are likely going to owe taxes come April.

(12/14) Whether trading FT or PT, it’s important to be prepared for taxes. I personally set aside about half of my profits under the impression they will be paid in taxes. I leave this money alone once it is withdrawn.

(13/14) Just like trading part time, this is a mental game. I personally look at my trading journey as a series of mental battles with plenty of ups and downs.

(14/14) Thank you for taking the time to read and showing support! Feel free to share! Don’t be afraid to comment about anything I may have missed!