Should you quit your Job to trade in the Stock Market?

If you’re thinking of quitting your job for stock market trading, then you need to think about a lot of other things too. Trading in the stock market necessitates an advanced level of technical analysis, that will distinguish you from a gambler to an independent trader. 

Before deciding to jump into the pool of stock market trading, learn its technicalities well, so you don’t drown into debt. Know how the market works and price points can be identified for right entry and exit.

If you are passionate about the stock market and in a dilemma, about whether to leave the job or continue it while trading, all your doubts will be solved here. 

What is stock market trading? 

Stock market trading is buying and selling securities in a short period of time and booking profits in between the price swings. It is not based on any news or any market noise, instead, it is based purely on your study of a candlestick chart of the stock or security. 

You need to be equipped with advanced technical analysis to identify the pain points of the stock as well as the points from where the major chances of shooting up are there.  Trading requires sheer dedication and a lot of time to research before actually entering into the trade. After entering into the trade, constant speculation is needed to fight adverse market conditions or to book profits at the right time in favorable market conditions. 

Pros of Leaving Job for Trading

Leaving the job to be an independent trader is a huge decision and it should be taken after considering all of its advantages and drawbacks. Though it requires utmost courage to leave a fixed income source and start sailing in the boat of volatility, it sure has various advantages if it is done right: 

1. Good returns: If you are equipped with good knowledge and have a good grip over market volatility, you can make more than twice or more of your salary with good approaches and handsome capital. With the right strategy, the equity and cash market can give you substantial profits that can be much more rewarding compared to the monotonous job. 
2. Flexibility: Trading Full-time will offer the exceptional benefit of a flexible work-life. You just need your system and a stable internet connection and you can work from any corner of the world. After all, being your boss comes with certain benefits. 
3. Never Ending Learning: The stock market is always a step ahead of us, no one can ever master it completely. Hence, it never gets monotonous, because you learn something new every day. The market will never always be in your favor, you’ll learn gradually how to manage adverse market conditions and make profits out of them too. 
4. Different Instruments: The stock market trading is beyond buying and selling equity stocks. There are derivatives, Mutual Funds, ETFs, and commodities. It just expands with your will to learn and earn. 
5. Manage your Time: The market does not require you to work 24*7, but it does mandate you to give more than 100% while you are researching, otherwise, loss of money can take a good toll on you. Unlike jobs, no fixed desk job in a cubicle is here, instead, you get the freedom to work from wherever you like, with the help of whichever methodology you want. 

Also Read: Investing Tips

Cons of Leaving Job for Trading

Leaving a mixed-income source is hard, but it may always be beneficial. Not everyone can master the stock market trading with the same intensity. You need to know how passionate you are about the market before entering it by leaving everything behind. Here’s how it can impact you negatively: 

1. Pressure: When you leave your job for independent full-time trading you have a lot of pressure to earn at least equal to the pay of your job and if some months end up in losses, the pressure to manage the finances can take a good toll on you.
2. Financial Risk: If you trade aimlessly and get swayed into the emotion of greed and fear, you may end up losing more than you have. This heavily increases the financial risks in your overall life.  
3. Isolation: The journey of being a successful trader comes with a lot of loneliness. Someday you will not have the company to either share your wins or grieve your losses. You need to be the master of all your decisions; this can backfire badly in some situations. 
4. Retirement Plans: Job security gives the time liberty to save for retirement. Whereas if you are an independent trader and do not invest for the long term with the vision of retirement plans, then there are high chances you’ll be working till the last. 
5. Stress Levels: The stress a trader undergoes is unmatchable. Be it profitable days or loss days, if you only have your own company stress cannot be avoided. It has to be managed well for a better future. 
6. Lack of Guarantee Income: market does not guarantee you fixed income like the same earnings every month but yes it has the potential to keep you financially stable and even a millionaire if done right so when you step into full-time technical trading, make sure you are ready to take this risk before you quit your job. 

Know this Before you Quit your Job for Stock Market Trading

Before you quit your jon to be an independent trader, know these things well: 

1. Be Prepared: Be prepared for the things that are gonna come to you. Trading is not a streamlined journey, at some point, your study is gonna fail, but that doesn’t mean you are doing it wrong. Let’s go by saying it was just a bad day. Know firsthand what you’re getting into. 
2. Gain Knowledge: Before you quit your job, make sure you have great knowledge about the stock market trading and have a well-equipped strategy. Do not quit your job first and then learn. Learn first and master yourself with endless practice. Gain confidence in your technical analysis, then quit your job. 
3. Bad days and Losses are Inevitable: Some months the prices might be below the pay scale of your job. But, do not lose confidence in yourself if you have mastered technical analysis well. With a good approach and strategic technical analysis, some months are going to be so profitable that your yearly package will fail. It’s just about being a consistent and rules-based trader. 
4. Emotional Discipline: An independent trader needs to maintain a high level of emotional discipline and resilience. Make sure you have a good coping mechanism to deal with the inevitable ups and downs of the market, and avoid making impulsive decisions based on fear or greed. Never trade without stop loss and a realistic target. 
5. Financial Planning: Do your financial planning well before you quit your job. It is necessary to have an overview of your capital before entering into the world of stock market trading. Do not put all your capital into the market. Save a good amount for emergency use, to balance out the adverse market conditions. 

Conclusion 

To summarize, the decision to quit your job and pursue full-time stock market trading is a serious one that must be carefully considered in terms of both positives and downsides. While the prospect of huge returns, flexibility, and ongoing learning may be enticing, it is critical to recognise the financial dangers, pressure, isolation, and stress that come with the job. Before you take the plunge, be sure you’re well-prepared, understand the market, and have a solid trading strategy. Understand that losses will occur, but with emotional discipline and resilience, you can effectively manage the market’s ups and downs. Finally, full-time trading can be a lucrative endeavor for individuals who approach it with care, determination, and a willingness to always learn and adapt.

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