Ah yes, another article and another funded trader has made it through the funded trader programme. As you can gather from the title, Momodou has quite a story. I’m going address what every funded trader has asked, wondered, thought privately or thought about asking, or will ask at some point.
How long until they can live off their trading completely and what would be recommended if so?
Interesting question. This is one of those questions which while straightforward has not got a single straightforward answer.
It depends on your unique circumstances, and no-one worth their salt will tell you that you should solely just trade alone. In fact, no-one will tell you that you should have one source of income at all.
Momodou’s story is inspirational and exemplary of this advice. He’s experienced, but despite being profitable, still underwent his education and once he was able to trade to support himself (as the title indicates) by trading a 5-figure account did he find his calling by trading.
However, as we preach in our mentoring and mastermind, you must diversify yourself which is what Momodou did hence he added sources of income my monetising his knowledge by teaching others to trade.
We also say to have other sources of income because if trading becomes your sole source of income, you are most likely going to lose your edge. You are likely to fall into a trap where you ascribe value to your trades, and you start trading your account and not the market which is leads to all sorts of chaos.
For those of you which are astute, you will notice that we suggest diversifying your income sources for your psychology as well.
We heard lots of stories about people who quit to just trade or people who were doing perfectly until they relied on trading for income only for it to go wrong.
It is analogous to lottery winners who waste their winnings, but this is more of what we call the House Money Effect which then leads to issues such as Mental Accounting, Loss Aversion, Revenge Trading and many more issues which we aim to avoid.
Hence why we offer an optional coaching bolt-on to the funded trader programme. We optimise the funded trader’s style including a deep dive into how they approach into their psychology and envision themselves beyond to make it scalable for when they grow their account so they could avoid these pitfalls.
Without further ado, here is Momodou’s interview: