Many who try day trading, end up sticking with it for life. But, there are many things to consider before you join them. How much time do you plan to spend trading? Will it become your hobby, or a full-time occupation? Does it actually have the potential to become the main source of income for you?
Let’s figure out, what does day trading mean to you? Starting with a few hours a week, or maybe a day, many people launch their intraday trading experience to get some extra income. As time passes by, many traders eventually face the question “when is the right time to start day trading for living?”
There is no right answer to this question, because there are so many factors to consider. So, please do so thoroughly.
Moreover, intraday trading does not guarantee any profit at all. Trading as your career won’t provide you with a monthly paycheck, and you will always risk losing your money after spending a lot of time and effort.
Scared already? Don’t be. That’s no reason to get discouraged. Day trading can still be a good career choice for those who is well-armed and have realistic expectations.
Before learning particular intraday trading techniques and tips, let’s find out some necessary pre-requisites you should follow to involve in day trading as a full-time job.
Have you ever heard that practice makes perfect? Well, in case of trading it works as well. Before you consider quitting your stable job in favor of becoming a full-time day trader, you should get properly equipped. Today there are numerous options, both introductory, and advanced. Some trading platform providers offer good educational content and free demo accounts. A good place to start.
Theory is good. Like in any other profession, knowledge of the subject is a good start, however, it’s definitely not enough. You should spend a lot of time trading, so you can develop a feel for the markets and find your own style.
To do something well, you should do it consistently. Trading every day helps you set and achieve realistic goals, and develop the necessary skill set. It’s much better to earn $5,000 every month, than to get $100,000 once and nothing for the rest of the year. If you trade for living, consistency will be beneficial in the long run.
The lack of stability, good and bad months, successful and unsuccessful trades, is compensated by the emotional roller coaster that makes trading so attractive. However, if you’re not so adventurous, you can reduce the level of stress a bit, by developing a risk-averse trading strategy and stick to it.
Before escaping your daily nine-to-five routine, you should save up enough money to cover your expenses for a rather long period of time. It will cut down on stress and help you make impartial decisions while trading.
Taking it seriously, day trading can be incredibly rewarding career choice. However, it’s highly demanding. If you’re thinking of changing your life, quitting your job and becoming a professional full-time trader, you should understand that you can’t do it straight away. It takes time, knowledge, patience, devotion and unfaltering determination to achieve your most ambitious goals. Stay persistent and never give up on your dreams.
No matter what trading tool or strategy you prefer, always bear in mind that many retail investors lose money when trading. Consider whether you can afford it.