If you are interested in trading, you may have wondered whether it is better to be a full time trader or a part time trader. There are pros and cons to both options, and the best choice depends on your personal goals, preferences and circumstances. In this blog post, we will compare the advantages and disadvantages of full time or part time trading, and help you decide which one suits you better.
Full time trading means that you dedicate most of your time and energy to trading, and treat it as your main source of income. You may have a trading plan, a forex strategy, a risk management system, and a set of rules that you follow consistently. You may also have access to more resources, such as trading software, education, mentors, and networks. Full time trading can offer you more freedom, flexibility, and potential rewards, but it also comes with more challenges, risks, and responsibilities.
Some of the benefits of full time trading are:
- You can trade at any time of the day or night, depending on the market you choose. You can take advantage of different opportunities and market conditions that may not be available to part time traders.
- You can focus on your trading without distractions or interruptions from other commitments, such as a job, family, or hobbies. You can also devote more time to learning, improving, and refining your skills and knowledge.
- You can potentially earn more money from trading than from a regular job, especially if you are successful and consistent. You can also enjoy the satisfaction of being your own boss and making your own decisions.
Some of the drawbacks of full time trading are:
- You may face more stress and pressure from trading, especially if you rely on it for your living expenses. You may also experience more emotional swings, such as fear, greed, frustration, or boredom.
- You may have to deal with more uncertainty and volatility in the market, which can affect your performance and results. You may also have to cope with more losses and drawdowns, which can be hard to recover from.
- You may have to sacrifice some aspects of your personal and social life, such as spending time with your family and friends, pursuing other interests, or having a stable routine. You may also feel isolated or lonely if you trade alone.
Part time trading means that you trade in your spare time, while having another source of income, such as a job or a business. You may trade for fun, for extra income, or for long term goals. You may have a simpler approach to trading, such as following a trend or using indicators. Part time trading can offer you more balance, security, and diversity, but it also comes with more limitations, challenges, and trade-offs.
Some of the benefits of part time trading are:
- You can have a steady income from your job or business, which can reduce your financial stress and dependence on trading. You can also have more stability and security in your life.
- You can have more variety and enjoyment in your life, as you can pursue other passions and hobbies besides trading. You can also have more social interaction and support from your colleagues, friends, and family.
- You can potentially grow your wealth over time by investing in the market, especially if you have a long term perspective and a compound interest effect. You can also benefit from the power of diversification by having multiple sources of income.
Some of the drawbacks of part time trading are:
- You may have less time and energy for trading, which can limit your opportunities and results. You may miss out on some profitable trades or exit too early or too late due to your schedule or availability.
- You may have less focus and discipline for trading, which can affect your performance and consistency. You may also have less motivation or commitment to improve your skills and knowledge.
- You may face more conflicts and distractions from your other responsibilities, such as your job, family, or hobbies. You may also have to deal with more stress and fatigue from juggling multiple roles.
As you can see, there is no clear-cut answer to whether full time or part time trading is better. It depends on what you want to achieve from trading, how much time and money you can invest in it, how much risk you can tolerate, how well you can manage your emotions, and how much you enjoy it. Ultimately, the best option is the one that aligns with your personality, lifestyle, and goals.