Being a full-time investor can be very tricky and demanding as you never know what the future may bring. However, at the end of the day, it’s one of the best decisions that you can make in the 21st century. The only way you can properly maximize your profits and enjoy the benefits of your hard work is to take control of your own destiny. Being a full-time investor allows you to do just that. But, of course, if you want to become a successful investor, you need to have the right information, and you need to know your priorities first. No matter if you want to trade stock, Forex, Bitcoin, or futures, the rules are completely the same.
In the lines below, we will provide several tips that you need to follow if you want to become a successful full-time investor.
Arm yourself with proper knowledge
If you want to become a successful stock trader, you always need to have the right information. The stock market is changing all the time, so before you make any crucial financial decisions, make sure you’re up to date with the current standings.
You should always have a wish list of stocks that you want to trade. Also, make sure to keep track of the general market as well as the selected companies. You can achieve that by visiting the most reliable financial websites on a daily basis. You can also scan the most relevant financial newspapers if you wish.
Set aside both your crucial resources and time
If you really want to become a successful full-time investor, you need to manage your time and resources properly. First off, you need to determine how much capital you are willing to trade. At the same time, you have to consider all the risks as well. In a typical scenario, many successful stock traders risk as little as 2% of their account for each trade. If you have $40 000 loaded on your account, and you want to risk 0.5% of your capital per trade, the maximum loss for each trade would be $200. Always make sure that you have a reasonable amount of funds that you can trade without the fear of losing.
Time is another crucial resource that you need to consider. Being a full-time investor will take away much of your time, so you need to manage it properly. If you don’t have enough time, you should consider whether you should become an investor at all.
Always keep track of your trades and learn how to appreciate small loses
If you want to become a successful Forex trader, you always need to examine your risks thoroughly. Technically, you need to treat your trading money as vacation money. You feel great while you have these financial reserves but, the truth is, as soon as the vacation is over, you will have no money at all. With this kind of attitude, you can learn how to appreciate small loses, which will ultimately lead to much better risk management.
Make sure that you have positive feedback loops
Every successful full-time investor who is interested in Forex trading needs to have positive feedback loops. Every time your Forex trade is successful, you automatically generate one positive feedback loop. One success should lead to the next, and as a result of that, you can get a pretty solid ground to make your trades even more successful in the future. Even small losses should not bother you – as long as your trades are profitable, you will keep building positive feedback loops, and you can only benefit from that in the long run.
Learn how to conduct proper technical analysis
Cryptocurrencies are very popular nowadays, and Bitcoin is a very interesting platform for many traders. As a full-time investor, you may want to initiate some trades there as well. However, unlike the other currencies and asset classes, Bitcoin is a completely different “beast.” In this case, you can’t rely on any central bank nor any other governing body to help you out. Moreover, the pricing models are very unpredictable, and it’s very easy to go bankrupt if you’re not careful enough.
If you want to become a successful Bitcoin trader, you need to conduct your own technical analysis. You need to analyze the pricing trends as that’s the only factor that can influence your future trades. The fact that you don’t have any proper market fundamentals can be very disheartening. However, you can also use that fact as a driving force that will make your investments even more successful.
Make sure that your pace is sustainable
As a successful Bitcoin trader, you need to establish a proper schedule. The schedule itself needs to be sustainable in the long run. If you end up being a workaholic for too long, you will be burned out, and your productivity will decrease.
Make sure that your pace is flexible enough so that you can manage it without pressuring yourself too much. Find the best times to generate your trades and stick to that schedule as much as you can.
Try to cut your losses as much as you can
If you’re interested in futures trading, you need to be very careful. Small losses are not a big deal, but over time, they can become a huge issue. Losses that you can manage could easily become your worst nightmare before you even realize.
As a successful full-time investor, you need to minimize your costs as much as possible. If your futures trade is too risky, you should terminate it before it becomes an issue. Only this way will you be able to keep your losses under full control.
Be an independent thinker
Another important virtue of a successful full-time investor is the ability to think ahead of time. You need to analyze the short-term trends on a daily basis, and you need to learn how you can predict them as well. Such trends change each and every day, and they are highly volatile. So, if you can’t act accordingly, you will be lost fairly quickly. Such a scenario happens way too often with futures traders.
Try to think independently and take the future into your own hands. Always observe the market trends and think twice before you make an important decision. With such attitude, you can only succeed in the long run.