Stock Trading - Could You Be A Full Time Trader?

Trading full time is something that many of us aspire to. It seems like such a good goal. You know, just trade. Live where you want. Do what you want. Make some trades now and then, etc. And this dream can be a reality.

Just make sure that you do a reality check first. I mean, just how good of a trader are you? Are there massive swings in your equity?

Stock Trade

That's the key. Sure, you might be able to get a 100% return on your money, but that's not really what you're after when you trade full time. The full time trader has bills to pay on a monthly basis.

You see, if you're in the red for months on end, how are you going to survive? You need monthly income.

You need to make money now, and it needs to be steady and consistent. If you are not a consistent trader, just forget it (or learn how to be more consistent).

Want to know one of the best ways to become more consistent? Very simple. Write options.

Yes, option writing is a much more consistent way to bank profits time and time again. Of course, you should be diversified. Not all trades will work, so you need to be in multiple trades.

Being in more that one trade also gives you stability. You see, that's one of the biggest things to realize. You aren't going for the home run as a full time trader. You're going for the bunt and singles (to use a baseball metaphor).

Put naked puts (done right), covered calls, some kinds of credit spreads, these are the best way (in my humble opinion) to create stability to your trading toolbox.

Stock Trading - Could You Be A Full Time Trader?