Lifestyle trading is a concept that outlines a way of trading, that does not take up too much time, and allows for a good lifestyle.
Lifestyle trading is really a concept of trading any style that does not require too much of your day to be taken up sitting and watching a screen or reading news.
One form of this type of trading is derived from understanding the active times when a market presents opportunities. A market might present higher volatility or more setups in a period of time than other times throughout the day.
Trading a small period of time when opportunities are present can create a great level of focus but also save loads of time, allowing the trader to reach a point where they are ‘lifestyle traders’ and able to life the life they want.
Defining Your Goal Lifestyle
An massively important part of the journey to lifestyle trading, is to define what sort of lifestyle you want. Some people have huge dreams and want masses of money, while others want enough to enjoy their time as much as possible with little attachment to money. Whatever that is, it is important to define it so you have a reasonably clear goal.
Choosing a lifestyle that suits you is only something you can decide. What do you want from life, how much money does that need and how much time do you need to work or trade to achieve it?
Assessing Your Needs
To work out your required income, you first need to know an estimated income % from your investment and trading activities. For example, if you need $2,000 per month, and you know that you can earn around 3% per month on average, you can run a simple calculation to work out your needs.
$2,000 divided by 0.03 (3%) = about $66,700
So you know if you can earn 3% and have about 70k then you might be able to get by on that.