When people start out in the futures trading many of them will still be holding down a job or part time work as they begin their forays into the world of futures trading. In your first year of trying to become a freelance futures trader you will be setting yourself on a very long road that requires hundreds of hours of learning, testing, rethinking and strategizing. The profit margins in your first year are likely to improve with correct training but it takes time to build up the knowledge and confidence in how futures trading operates and how you can optimise your own systems and strategies. We don’t want to discourage anyone from trying to gain independence and financial freedom so we decided to look at the ways you can finance your new career and what you’ll ideally need.

In Terms of Money you’ll Need

Of course you’ll need all your basic overheads covered but you’ll also need money for training, books and most importantly for actually using on the market. This means that your budgets at home are likely to be restrictive in many ways and that the investments you are making in yourself need to be supported through other avenues. With that in mind we look at some of the key ways people finance their first year of futures trading.
Financing

Full time work

By far the best way to start your new career is by still maintaining a full time job. Whilst this makes your hours incredibly long and you’ll have little time for yourself it really is the most secure way of getting started in futures trading. Given 6-18 months you should be in a position to quit your job anyway so perseverance is by far the best option. Still remember to give yourself some breaks and concentrate on learning more and investing less until you have a solid grasp of the markets.

Part Time Work

If you are thrifty and keep your overheads to a minimum you don’t need to spend too much on living costs on a monthly basis. A part time job is therefore the easiest and most beneficial way to start your career as it gives you the time you need for learning and your new job and the financial security of knowing you won’t be in the red. As you progress you’ll be able to cut down your hours and ensure that your new income will cover your previous expenses – and hopefully, of course, exceed it.

Small Loans

A small loan will give you some extra capital to put towards your investments and give you the money you need to live comfortably for a while at least. Small loans, or small business loans if you can acquire one, mean a quick injection of capital. In terms of futures trading though we wouldn’t recommend you take out any loan until you are consistently making profits on your daily investments. If you can maintain a profit margin over 6 months then you may benefit from a cash injection but be cautious and don’t jump the gun chasing your dream.

Credit Cards

We know of a lot of people that have used credit cards to finance their first few months of serious trading and whilst we wouldn’t recommend it entirely we can say that it is fine providing your ROI exceeds the interest you will pay. It is easy to get into debt with credit cards so make sure you can cover your running costs and have a good grasp of the markets before you use these. Always remember not to rely on them as a principal funding mechanism.