How to Transition from a Part-Time Day Trader into a Full-Time Investor

Day trading first emerged with what can only be called a decidedly viral reputation during the fast-paced era of the 1980s. Often synonymous with dynamic investment opportunities, and a fair amount of volatility, films such as Wall Street further cemented the so-called allure of this profession at a relatively early stage.

Still, all that glitters is not necessarily gold. One of the possible downsides associated with daily trading can sometimes involve profit margins associated with a fair amount of risk. This is why you may be considering making a transition into the role of a full-time trader. How can this move be accomplished, and what do the experts have to say?

Carefully Choose Your Asset Classes 

Day traders are often focused on a discrete underlying asset or index. After all, it is nearly impossible to simultaneously monitor multiple positions with any degree of accuracy. On the contrary, full-time investors will frequently seek to develop portfolios capable of superseding the knee-jerk movements attributed to a single position. It is therefore wise to become acclimated to numerous potential possibilities. 

Education goes a long way in this respect. For instance, those who wish to learn more about cryptocurrency trading can refer to this page while investors primarily concerned with commodities could instead choose to proactively monitor the Chicago Mercantile Exchange (CME). Diversification is key for those who are keen to avoid periods of extreme volatility. The first step therefore involves selecting assets that resonate with your trading strategy.

Balance Short- and Long-Term Investments 

While there are exceptions to this rule, many day traders are concerned with short- to medium-term profit margins. Full-time investing may require a more longitudinal approach. As a common goal is to accumulate a reliable source of capital over time, it is a good idea to take a look at assets offering a greater degree of longitudinal predictability. Precious metals, blue-chip shares, and treasuries are three relevant examples.

Develop a Targeted Knowledge Base 

Day traders are well aware of how experience makes all of the difference in the world between success and failure. This is just as true when discussing full-time investment strategies. Take the time to obtain a working knowledge of both fundamental and technical analyses. These will prove to be invaluable skills when becoming fully immersed within the investment sector. Furthermore, recognise the simple fact that the learning curve never truly ends.

Appreciate the Relationship Between Risk and Capital Return

How much risk are you willing to take? Believe it or not, most day trading enthusiasts display the very same risk-averse attitude as those who transform a hobby into a career. Having said this, there is always room for assets that may prove to be more volatile on occasion. The intention here is not to ablate such risks, but rather to moderate them with more stable positions. Still, concepts such as "stability" and "volatility" tend to vary between individuals. Get to know your thresholds for both.

Perform an Honest Self-Assessment 

This next suggestion involves a touch of psychology. Here are some general questions that should be answered before moving on:

• What are your ultimate goals? 
• Might you require more experience? 
• How familiar are you with online investment platforms? 
• Are you able to keep emotions in check? 
• How comfortable are you when stepping outside of your comfort zone?

While the answers will obviously differ from individual to individual, the purpose remains the same. Understanding your personal strengths and weaknesses will allow you to become a more well-rounded investor.

Patience and Time

This final slice of advice applies to all types of investing. As opposed to what digital "experts" may claim, success within the world of investing is no easy task. You will need to accept the immutable fact that such a feat takes time. Mistakes are also a part of the bigger picture. Those who do not possess the patience required to take on the role of a full-time investor might instead be better suited for the world of day trading.

Are you ready to ascend to the next step? If so, it is a good idea to consult with a well-known multi-asset brokerage so that you can better appreciate the numerous options. These firms will help to point you in the right direction, and the sheer number of investment opportunities might come as a welcome surprise.