Are you considering becoming a full-time investor? You may have a passion for investing. You might be in the transitional stage of your career and wish to move from being a salaried employee to a stockholder. Although becoming an investor full-time is profitable, it entails substantial risks versus investing in stocks regularly. The stock market has seen rather excellent performance in the previous few years, which has many flaunting their multi-baggers.
Many want to quit their day jobs to be full-time investors because of the "knack for finding potential multi-baggers". The major mistake they make is taking some successful trades and getting carried away into full-time income stream plans. It is essential that you possess certain core personal qualities before you quit your job. These include:
- Having the capability to control your emotions
- Taking and managing risks and,
- Solid qualitative risks
- Pre Financial statements
- Marketing Strategy
- Technology, licensing, occupancy, administrative and legal requirements
Understand Your Working Model
If you are going solo, you will reap the business profits completely or take the burden of your trading administration. In partnership, you will share risks, rewards, and responsibilities.
Seek a Mentor
Raise Enough Capital to Invest
- Using your assets or your family's
- raising money from third parties on your own or
- raising funds through a third party
Keep a Fine Balance Between Your Human Capital and Financial Capital
Would you like to be called a bond or a stock? If your income fluctuates, for example, when you depend entirely on the stock market, you're stock. Therefore, diversify into capital protection instruments. Alternatively, if you have a stable income or job, you are a bond. Therefore, diversify into stocks and equity.