𝗪𝗵𝘆 𝘆𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱𝗻’𝘁 𝗾𝘂𝗶𝘁 𝘆𝗼𝘂𝗿 𝗳𝘂𝗹𝗹-𝘁𝗶𝗺𝗲 𝗷𝗼𝗯 𝗷𝘂𝘀𝘁 𝘆𝗲𝘁
If trading is your only source of income, you’re putting yourself at a disadvantage psychologically.
Why?
Because you will have the need to make money every month.
This causes you to make poor trading decisions like widening your stop loss, averaging into losers, trading too large, etc.
And that’s why many professional traders do not rely on trading as their only source of income.
For example:
- Mark Minervini, a Stock Market Wizard, offers a master trader program that cost $5,000
- Most hedge funds (even the best ones) charge a management fee every year —even if it’s a losing year
To put things in perspective, if you run a billion-dollar hedge fund and take a 2% management fee, it means you get $20m a year — guaranteed.
As you can see, professional traders and hedge funds structure their trading in a way that it’s not their only source of income.
This means if you have a job, you have a source of income every month no matter what. This allows you to focus on your trading without having to worry whether you can pay the bills this month, or not.
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