There are a couple of requirements to being a full-timer.Must...

  1. 2,717 Posts.
    There are a couple of requirements to being a full-timer.

    Must have the temprement (& you will never know that for sure until to make the leap)

    Must KNOW what your living costs will be & that in turn will give you an idea of how much capital you need to give yourself a chance of success.

    The problem facing everyone trying to make a living solely from the stockmarket is that you have to cover your daily living expenses every day (or week or month)
    If you are undercapitalised you will often be forced to make decisions within a non-optimum timeframe ie you have bills to pay but an investment might not have achieved your goal yet.

    The way to cover this is to work your annual living costs & allow a 5% return on investment to cover that ie you need $100K to live in a manner that you've become accustomed to, then you need $2m to play the market with. Of this amount 2 years living expenses should be kept in cash (various term term deposits)

    This way, while you will very often make more than 5%, you will not have the pressure of HAVING to make trades to pay bills
 
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