Transitioning from Steady Income to Full-Time Trading – How Do You Gauge Risk Tolerance?

Making the leap from a stable paycheck to full-time trading or investing is exciting but also a bit nerve-wracking. One of the biggest hurdles is figuring out how much risk you’re truly comfortable taking when your livelihood depends on it.

For those who’ve made the switch, how did you assess your risk tolerance before taking the plunge? Did you start with a trial period, adjust your portfolio gradually, or rely on a specific framework to measure your comfort level? I’m especially curious about how you balanced the psychological side like dealing with drawdowns versus the pure numbers.

Would love to hear any lessons learned or strategies that helped you stay grounded during the transition. Thanks in advance for sharing your insights!