Financial freedom

1) You have been trading the stock market successfully for 6 months. You must be able to trade the stock market successfully for 6 months learning to trade in Bearish and Bullish times. If by the end of the 6 months you have not consistently increased your profit do not attempt to be a professional trader.

2) When you can make money in the stock market when it is Bullish, Bearish or sideways trending. This is a little controversial. There are many hard core bullish traders out there who believe that bullish trades are always present.

However, the market will have times when it just crashes. If you only trade bullish stocks you have to just wait out the downtrend. By being able to trade the markets successfully in all market conditions you ensure that you will be able to support yourself even if the markets are acting up for 2 years or so.

3) When you can make enough profit off your trades to supplement your annual expenses in 3 months. This is a rule I heard from another great traders and it seems like a great rule to follow. Why 3 months? Because, the market is unpredictable, making money 1 month does not guarantee that you will make money the next. Be cautious.

4) When you have your own set of strict rules that you follow. Follow them closely and remember NEVER to over position. If you are confident in your system and follow it closely you are closer to becoming financially independent just from your investments.

5) Finally, remember that trading has its ups and downs. If you want to be sure that you will be ok it is always a good idea to have something else to fall back on during the down times. Saving up some money for emergencies or investing some money into safer assets can help make sure you will still be ok even if you have a run of bad trades.