Mistake #3: Trading full-time makes the most amount of money
I thought that if you want to be a trader, you must be a full-time trader.
Because I thought that it’s where you make the most amount of money.
I kind of realized that it’s not really true.
Let me explain.
Let’s say that you are a full-time trader with a trading system like this…
Full-Time: 40% return on a $50,000 account
Having that system would earn you $20,000 a year.
If you have a family to support, then that amount would not suffice.
However, if you are single without a family, then $20,000 a year would make sense, right?
You withdraw again and again for your living expenses and you’re back to $50,000 in the next year.
You would always be back to square one, and again, your standard of living would not improve.
But let’s say you go with a second approach where you trade part-time…
Part-Time: 20% return on a $50,000 account but add in $6000 every year
Since you trade the higher timeframes, your return percentages may not be too great.
But because you are trading part time and you have side gigs and/or a full-time job…
You can actually add extra funds to your trading account every year or even every month.
And because you are having a full-time job elsewhere, you don't have to touch the money in your account.
That money inside your portfolio is something you can grow and grow and grow.
Since you have the opportunity to grow your funds compared to the last method, at the end of 20 years, you could potentially build this much wealth…
But then again, there's no such thing as a “guarantee” in trading so I use the word “potential.”
But you're looking at $3.2million!
I think that's something you can pretty much retire on!
Can you see how powerful part time trading can be?
As you can see, full-time trading doesn't mean that you can definitely make more because of the fact that you need to pull out funds from your account time to time.
And it makes compounding more difficult compared to someone who can trade part-time and grow their account.
Trading is not a get rich quick scheme, it is a get rich slow scheme.