We’ve all heard the stories about stock traders that become roaring successes when it comes to working the market. They’ve been earning steady profits trading for years, if not decades. They also enjoy the type of job freedom everyone dreams about. These days, day traders don’t have to put on a suit and tie to work 9 to 5 at an office somewhere (unless they want to, of course). You can become a trading success with nothing more than an internet connection and a laptop.
You can work anywhere and at any time you please, as your work goes with you. You’re your own boss and you call all of the shots. However, every would-be stock trader has the same concerns going into the market. Here we’ll explore the real answers to the most common questions you may have.
CAN I ACTUALLY EARN A FULL-TIME LIVING AS A TRADER?
Yes, it is more than possible to not only earn a full-time living as a day trader, but to earn a solid full-time living. However, it’s important to understand the realities of what it really takes to reach that level of excellence.
Stock trading calls for a very specific set of skills and personality traits that not everyone is going to possess. To begin with, you need excellent instincts when it comes to making market predictions, as well as a marked ability to tolerate risk and remain cool under pressure. Many people think they have these qualities, only to find out that they don’t once the chips are really down.
It’s also important to understand that despite the high degree of freedom and potential financial gain involved, stock trading is definitely a job … and a tough job at that. You need to not only have a strong work ethic, but be self-disciplined. Without a boss hanging over their shoulder, many people find it hard to buckle down and pour as much of themselves into what they’re doing as they should.
The truth is most people that get into stock trading won’t become booming successes at it. No one is saying that you shouldn’t follow your dreams, of course, but you need to understand what you’re getting into if you’re serious about succeeding. You need to be really good and really well prepared.
HOW CAN I INCREASE MY CHANCES OF BEING A SUCCESS STORY?
Deciding to get into stock trading is a lot like deciding to pursue any other career choice. Research, preparedness, and the right mindset will go a long way. Here’s what you need to do.
DEVELOP A METHODOLOGY
When it comes to the stock market, you want a sound methodology in your corner. Such a methodology involves the ability to take advantage of volatility, but that never loses sight of proper risk management in the process. Consider developing such a methodology via expert training courses or a mentorship program. Then test it and strengthen it over time, preferably in regards to various markets and without real money being involved at first.
Start reading everything you can get your hands on about trading stocks. (Make sure that the book's cover trading in particular, as opposed to investing.) Don’t just thumb through a couple of options at the library. Pick up your own copies of top-rated books that speak to you, and read them cover to cover. Then read them again. Take notes and do additional research when and where necessary. It's important to note that by educating yourself, you are not looking for a holy grail, instead you're gaining knowledge. Some of which may even teach you what not to do.
If you’re serious about going into day trading as a full-time living, then it’s important to approach things the way you would if you were making any other kind of career change. Don’t quit your day job until you’ve determined whether or not you really enjoy trading and have the knack for it.
If you do reach a point where you’re ready to give stock trading a real full-time shot, then make sure you have at least a year’s salary saved in advance. You’re not going to be trading with this money. It’s to cover your living expenses while you gain some footing.
You’ll also want to prepare yourself psychologically for the realities of being a full-time trader. Your income will be inconsistent at first, so make sure you can handle that. It takes time, effort, and dedication to develop the talent, instincts, and emotional fortitude to become a truly successful trader. The sooner you get started, the sooner you can find out for sure if you’re destined to be one of the greats!