Many people dream of being high-flying traders with no ties to a 9-5 job and the capability of making huge figures overnight. Of course, only a tiny proportion of people achieve this sort of success. However, with careful preparation and intelligent investments, it is absolutely possible to make a living trading stocks. This article will explore everything you’ll need to do in order to fund your life using investments alone.
Sadly, full-time trading isn’t something you can jump straight into. It’s vitally important that you understand the minutiae of the world of stocks and shares before you begin. Brush up on a range of techniques, research scenarios and learn as much as you can about the different assets in which you may invest, from stocks to forex to commodities to futures.
Decide on Your Approach
Don’t simply aim for the strategy that has the capacity to make you the biggest profit possible. Most of the time, these approaches are extremely risky and may go badly wrong. Instead, consider which method will best tie in with your financial status, future ambitions and – perhaps most importantly – your current lifestyle. For example, if you feel you can spend four or more hours per day at a computer pursuing multiple fast-paced transactions, day trading – in which an individual completes every trade before the stock market exchange closes for the day – may be the strategy for you. For something a little more sedentary, swing trading – which may see you taking a few days or even weeks to complete a transaction – might be preferable.
Set Yourself Limits
Whatever technique you decide to employ, you need to set yourself rules to prevent overly risky behaviors and silly mistakes. Budget carefully and stick to firm rules. Great discipline and a long game attitude helps a huge amount when you’re planning on funding your future. Lay out your ground rules and abide by them religiously unless there is an extremely good reason why you shouldn’t.
Start small and work your way up. The best way to start your career as an investor is to take a few careful steps into the world of trading, then remain where you are for a while. Take the necessary time to build your knowledge base and develop your techniques. Undertake a few small-scale experiments to try and find your niche before moving on to bigger things. The more practice you get, the more your expertise will grow.
You’ll only be ready to take the leap and start trading full time when you have an element of financial security in place. You need to know that you will be able to support yourself for at least a year as you build your investing career. Plus, you need to be financially prepared for those times when you are not raking in the profits as you’d like. For this reason, it’s a great idea to start saving while you’re still in full time employment. Once you’ve put together enough funds to keep yourself afloat, you can think about taking the next big step.