Trading for a Living

Submitted by Stock Market News on 28 April, 2011 - 16:04

Should you trade for living?

Traders eventually go full time as they gain experience and earn more money in the process. Knowing the ins and outs of the stock market takes a lot of time, and can only be learned through trial and error. However there are those who prefer trading the market rather than go to a routine 9 to 5 job. Rather than wait for pay day, traders can generate profit every day. But the question is with the uncertainty of the market, is it advisable to leave your day job that provides a steady source of income?

Unfortunately answer is no – well not until your making millions anyway. People can be successful from trading but its not easy. You are dealing with a highly inconsistent source of income with regular daily living expenses. Thinking of bills and putting food on the table adds pressure and can lead you to over trade. In hopes of compensating for losses and earn money for the week, your tempted to trade lower.

Trading with money that you can't lose is definitely a big mistake. Apart from the possibility of losing everything, emotions can easily influence your decisions. Your most likely to deviate from a plan especially when your on a losing streak. This also limits your capital. If you're trading just to pay the bills then you might as well go back to your day job where you're paid by the hour with less stress.

Starting with a low capital often sets high expectations especially when you need money. This will make trading much more difficult for beginners, considering their level of experience. Moreover, losses are frequent, so you will end up setting a bar that's too high and unmanageable.

In conclusion you shouldn't quit your day job. Trading for a living depends largely on the amount of capital you have. A steady source of income provides a net for you to fall back, and at the same time the capital to finance your ventures in the long run until you're making enough from the trading. Becoming a successful trader takes a long time, you need money to make money.

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