The digital nomad trend has been gaining in popularity over the last few years. Personally, I’ve been travelling for almost 3 years and I haven’t spent much time at home in that span. I worked for a major Canadian bank for almost 5 years. During a holiday, I decided to quit my career job and take things slower. Thankfully, I had some experience with the financial markets. I am writing this from a rooftop terrasse on the Pacific coast of Ecuador. I don’t trade full-time. But when the opportunity arises, I take advantage of it. During my travels, I met a few people who trade while travelling. Today, I’ll share a few tips on becoming a digital nomad trader. We offer many tools and courses on our platform for anyone interested.
Steps to Becoming a Digital Nomad Trader
Before getting into the trading aspect, we have to look at the bigger picture.
Just like in trading, before taking action, a plan is necessary.
In this case, before quitting your job, you need to figure out how you will survive as a digital nomad.
- Have enough money saved in the bank
Life is unpredictable. Leaving everything without any rainy day money is a bad idea. Have at least 1 year’s worth of money on the side. That amount varies based on your expected lifestyle and travel country. Backpackers can survive on less than $1,000 per month.
- Find a job that allows you to work and travel
Not everyone becomes a digital nomad trader. Some people manage to work their previous job from a remote location. All they need is an internet connection. Many teach useful skills online or work in the tech field. Hours and salaries will vary across jobs. We will take a deeper look at trading further on.
- Choose your financial institution
This is a crucial step. If you can, get yourself a reliable friend at your financial institution. Choose the correct debit and credit card that won’t charge you a fortune abroad. Make sure you have a backup debit and credit card. Theft can be prevalent in certain countries.
- Get informed and pack accordingly
I’ve seen way too many people who look completely lost when they’re in a new country. Don’t be a Jerry. Get informed and try not to stand out as a tourist. Also, maybe don’t bring your Mac Book Pro to a dodgy park in the middle of the city.
- Pick a country or an itinerary
Pick destinations with a reliable internet connection. Thank me later. Some countries have entry requirements and you might need a visa. Sometimes, the visa can be prolonged. Pick a few cities in every country where you can work from. It’s important to also enjoy the holiday and not work 24/7. Finding a place to work can be tricky. Let’s take a look at a few options.
Booking.com (NASDAQ: BKNG) or Airbnb (NASDAQ: ABNB)
This applies to all digital nomads. If you’re looking for a quiet place to work, Booking and Airbnb often offer discounts for stays over 30 days.
However, this isn’t the best way to meet other travellers. Maybe get out of your comfort zone and book a private room in a hostel to meet some travel buddies.
Workaway is a great platform for people to find a home for a few weeks and meet new people. Many hosts will provide a free room and sometimes a few meals per day in exchange for 20-25 hours of volunteering per week. This can become a lot for nomads balancing a full-time job on the road. Work on the road isn’t always a walk in the park as some make it seem.
How to Become a Digital Nomad Trader
Becoming a digital nomad trader isn’t as easy as it seems. For those who traded from home, they can change their home office for a beach chair, hammock or a table anywhere in the world. For those wanting to make the switch from a regular job to trading while travelling, let’s go through a quick crash course.
- Set up a Demo Account Before Quitting Your Job
For those with trading experience, ignore this step. For the others, before embarking on your digital nomad trading journey, maybe try it out first. Many platforms will offer a free demo account to practice trading. I suggest practising for 1 month. It can be difficult to juggle while working. However, it’s important to know if you’re good at it before quitting your job and doing the jump to a new digital career. We offer classes on our platform for traders of every level. Check them out here!
Investing in tools that will help you excel at trading is highly recommended. Subscribe to newsletters, blogs, advanced charts and good brokers. It will make a big difference. Having enough discipline to follow your strategy is ever so important. You don’t want to chase losing trades instead of moving on.
- Save Money, Choose a Broker and Financial Institution, Get Informed, Pick a Travel Itinerary and Leave!
To avoid being repetitive, repeat the steps previously mentioned
The importance of having enough money saved is ever so important for nomad traders. I wish you all the success in the world, but it is never guaranteed. Becoming a digital nomad trader comes with pros and cons. Let’s take a look at some.
Becoming a Digital Nomad Trader Pros
Work from anywhere. Pick any continent, any city, beach or mountains. As long as there is a reliable internet connection. For those who want to visit every country in the world, this is your opportunity.
Who’s the boss? You’re the boss. Nobody is there micromanaging your every move and telling you what to do. It is an awesome feeling. Nevertheless, it requires discipline to work without anyone forcing you to.
No customers, no employees. Take your coffee or cigarette break whenever you wish. Nobody is waiting for you. Remember those surveys about customer satisfaction? No more of those. Travellers are different from your daily coworkers. Much more relaxed and less annoying.
What time is my shift? Whenever you want. You know when the markets are open. You decide when you want to start and end your day. Also, weekends are always off.
When do I get paid? This is a tricky one. Did I mention having enough money saved? Successful trades will pay big, but the wrong ones can be devastating. Set limits for successful and unsuccessful trades.
Routine. Trading requires some kind of routine. Nobody opens their laptop at 9:30ET and begins trading. Some preparation is necessary before and after market hours. Furthermore, outside of working hours, a routine also applies.
Becoming a Digital Nomad Trader Cons
Family goals. You meet the love of your life on the road and spend amazing moments together.
What happens when it’s time to think about the future? On a rare occasion, two digital nomads find themselves and spend their life together.
However, most travel on a holiday. Relationships can be complicated on the road.
Losing trades. It can be difficult to mentally and financially recover from a losing trade. Keep your head together and avoid starting a chain reaction. Stick to your strategy.
What time is it? For those trading in the US markets but travelling in Asia, get ready for night shifts. On the bright side, your entire day is free.
Internet. Mobile data is the answer unless you’re in the middle of nowhere with absolutely no service.
FOMO. Fear of missing out on winning trades, on travelling with awesome people. You can’t always have the best of both worlds.
Now You Know What It’s Like Becoming a Digital Nomad Trader
Making the switch from a regular job to becoming a digital nomad trader is a humongous lifestyle change. Digital nomad traders take it one step further. Their income depends entirely on the skills and tools they develop with the stock market.
It takes a lot of discipline to focus on a task without anyone standing behind your back to verify your every move. For those with sufficient funds to live lavishly, this can be an amazing lifestyle. For those sometimes short on cash, it is possible to live comfortably in most countries with less than $1,000 monthly
If you want to learn more about how you can profit from the stock market, head on over to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.