Trading For A Living - Pipe Dream Or A Real Possibility?
Trading for a living is a dream of many. If you are a part-time trader, you no doubt dream of this every morning you have to get up early and face the endless traffic before getting to the office. You dream of becoming a full-time trader every long hour you sit at the office doing work you hate. You dream of it every time you have to look at your boss's angry face.
There are a few things you will need before you can make this a reality. Without these trading full-time will always remain nothing but a distant dream.
The first prerequisite for a full-time trader is that you have to realize something: you are not actually trading against other traders, or against the market. You are trading against yourself. If you are unable to overcome your inherent weaknesses as a trader, you will never be able to trade successfully over a long period of time.
You can do all the trading courses, read all the manuals and have all the latest software, but if you are unable to control yourself, the market will control you. If you tend to stay in losing trades forever, hoping they will eventually around, you will never become a successful trader.
Similarly: if you don't train yourself to be disciplined and stay with a winning trade longer, if you sell a trade that "goes into the money" immediately it shows a small profit, you will never make serious money trading. To the contrary - hanging on to losing trades and selling winning trades early will cause you to have numerous large losses and a few small wins - not a recipe for making money in trading!
You second important step will be to decide what type of trader you want to be. A day trader, a swing trader or a longer term trader. Day-trading is extremely alluring. You can start with little money, and you can sometimes make a lot of profit in one day. Statistically it is however much more difficult to predict the market movement for a share or a currency during the next 8 hours than to predict it for the next year.
You will need to decide whether you are going to trade in shares, in commodities or in currencies. Each one of these requires a special set of skills and tools. Share trading will require that you study the financial statements of the companies involved and the underlying market conditions for those companies. With commodity trading you have to get familiar with the market in that type of commodity. The same goes for currency trading.
The right tools are of course very important as well. To start off with you need knowledge. You need to get familiar with reading financial statements and analysing charts. You need to understand technical indicators, how to use them and how to interpret movements in these indicators
You also need to sign up with a service that can provide you with the latest market prices for the instruments you have decided to trade in. You get free services that supply delayed prices - that is fine if you do swing trading, but if you are doing day trading you absolutely need live prices.
Trading for a living can be a reality sooner than you think. Approach this in a systematic way. Start with yourself, get yourself ready, and then get the right technical tools. - 23199
There are a few things you will need before you can make this a reality. Without these trading full-time will always remain nothing but a distant dream.
The first prerequisite for a full-time trader is that you have to realize something: you are not actually trading against other traders, or against the market. You are trading against yourself. If you are unable to overcome your inherent weaknesses as a trader, you will never be able to trade successfully over a long period of time.
You can do all the trading courses, read all the manuals and have all the latest software, but if you are unable to control yourself, the market will control you. If you tend to stay in losing trades forever, hoping they will eventually around, you will never become a successful trader.
Similarly: if you don't train yourself to be disciplined and stay with a winning trade longer, if you sell a trade that "goes into the money" immediately it shows a small profit, you will never make serious money trading. To the contrary - hanging on to losing trades and selling winning trades early will cause you to have numerous large losses and a few small wins - not a recipe for making money in trading!
You second important step will be to decide what type of trader you want to be. A day trader, a swing trader or a longer term trader. Day-trading is extremely alluring. You can start with little money, and you can sometimes make a lot of profit in one day. Statistically it is however much more difficult to predict the market movement for a share or a currency during the next 8 hours than to predict it for the next year.
You will need to decide whether you are going to trade in shares, in commodities or in currencies. Each one of these requires a special set of skills and tools. Share trading will require that you study the financial statements of the companies involved and the underlying market conditions for those companies. With commodity trading you have to get familiar with the market in that type of commodity. The same goes for currency trading.
The right tools are of course very important as well. To start off with you need knowledge. You need to get familiar with reading financial statements and analysing charts. You need to understand technical indicators, how to use them and how to interpret movements in these indicators
You also need to sign up with a service that can provide you with the latest market prices for the instruments you have decided to trade in. You get free services that supply delayed prices - that is fine if you do swing trading, but if you are doing day trading you absolutely need live prices.
Trading for a living can be a reality sooner than you think. Approach this in a systematic way. Start with yourself, get yourself ready, and then get the right technical tools. - 23199
About the Author:
For anyone wishing to perform trading for a living, it is of utmost importance that you kick off with stock picking software and at least $100, 000 capital. Trying to enter the business with less than that will require huge returns year after year to make a decent living.
posted by X - Men @ 10:10 AM
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