Trading For A Living - What "Gurus" Won't Tell You

Trading For A Living - What "Gurus" Won't Tell You

You may have seen those ads about trading and how action-packed, exciting, and fun it appears. And yet, just like anything else portrayed by ad companies, this is the romanticized version of things. Now, don't get this article wrong. Almost anyone can be profitable and live off from trading. However, it's imperative that you have a grounded approach, and which is why it's best that you start with the pros and cons of trading.

Pros

Ultimate Job Security - the beauty of learning how to trade for a living is that you'll always have job security. This doesn't mean that you'll have a job in a traditional sense. It simply means no matter where you are and no matter what, you'll always have a way of making money. If the market and economy are down, a good trader can make money out of it. The fear of being laid off won't be in your dictionary.

Freedom - another enticing aspect of trading for a living is the freedom it gives you. Primarily, you don't need to be locked into a geographical location. In fact, you can live anywhere in the world as long as you have a stable internet connection. The reason for this is because most of today's trading is done on an online trading platform.

You also have more freedom with your time. No one is going to tell you that you need to work eight hours a day. If you are not feeling well or you have some important activity, you can take a day off whenever you want.

Cons

The biggest downside of living through trading is that you don't have a wage like a regular job. Now, hold up! You might think this is very obvious, but most people don't realize how much of a big deal this fact is.

Here's the thing, you won't have a short-term guarantee that you'll receive money by the end of the month or every other week. In fact, it's possible to go through a losing streak, and this could last for months. And, if you've got bills to pay and no financial buffer, you'll be experiencing tremendous amounts of stress.

Even if you have saved up money as a buffer, losing streaks will really test your mental fortitude.

How To Day Trade For A Living

Day trading for a living is like any other profession in which you need to have the right prerequisites to get started. Below is the bare minimum you'll need.

Broker 

 the first thing you'll need is a broker. A broker is like the middlemen of trading. They facilitate the buying and selling, and they get a small cut for the service they provide. Nowadays, there are plenty of online brokers to choose from, and with varying bonuses. It's best that you do some shopping to find the right one for you.

Trading Platform

 the next thing you need is a trading platform. Most brokers these days offer a trading platform on their websites. In most cases, it should be good enough to get you started. However, if you want something more advanced, there are services that solely focus on providing a cutting-edge trading platform. It may be the edge you need to win in the day trading game. Hence, such services are worth exploring.

Trading Strategy 

once you have a broker and trader, you can start buying and selling. However, if you want to win in this game, you'll need a trading strategy. This is the part where things can get complicated really fast.

Every trading guru out there will claim that their method is the best, and maybe it is. However, there's one thing that you should know. Trading is a very personalized activity. Just because it works for someone else, it doesn't mean it will work for you. There are other factors that you need to consider, like your risk-tolerance, capital, and trading time window to name a few examples.

Someone may be winning, but if you feel the strategy is too risky for your taste, it won't be as effective.

Your best bet is to try several strategies and find the one that you are comfortable with. Also, you'd want to start testing strategies with almost zero money involved. If you are in the testing stages, it makes little sense to start swinging your trading account's full weight because you'll likely lose money.

Wrapping It All Up

Trading for a living is something that is actually new. While it is true that trading has been around for decades, it was inaccessible for most people. It's only in these recent years that almost anyone can start trading thanks to the Internet and retail brokers.

However, just because anyone can do it now, it doesn't mean that everyone can be profitable. Just like any profession, day trading requires work, persistence, and patience for you to excel. However, if you pull it off, you'll also reap the unique and enticing benefits of trading.