20 Aug Can You Earn Income as a Day Trader?
Have you thought about trying to earn a living as a day trader? If so, you are not alone. Many market enthusiasts consider the idea but become sidetracked or lose interest when they see how much time and effort it can take. Still others follow through with their goals and make a decent living on the daily ups and downs of prices for stocks, gold, currencies and other assets. Do you have what it takes to become a successful day trader? A better question is, are you willing to do what you need to do to earn a living on the volatility of the financial markets?
If you want to make a serious go of it, there are several key pieces of information that can help you get ready for your new avocation. The following items are not meant to discourage anyone from this kind of career. To the contrary, as long as you are dedicated, patient, and willing to learn, it is indeed possible to earn full-time income by keeping an eagle eye on the markets. Here are some essential points about making a living in this fashion.
Get Your Financing in Order
Don’t expect to earn vast sums of money in your first several months. Assume that it will take at least six months before you’re able to turn a profit. The eagerness to make financial killings is what burns out many people who would otherwise be successful. Make sure you have enough money to live on while you are learning, or simply keep your job and spend a few hours each day as a trader. There is no hard and fast rule about how much money it takes to begin, but most people feel comfortable with at least several thousand dollars behind them. Only use funds you can afford to lose. Don’t dip into retirement savings or home equity. Keep a level head and go slowly.
Ease into a Full-Time Schedule
Don’t quit your day job, but plan to ease into day-trading a few additional hours each week. You’ll learn the discipline much better this way, won’t risk all your capital at once, and will still have a regular income to fall back on. In fact, many people take on this new job as more of a permanent part-time endeavor than a full-time career. But the decision is up to you. Just remember to take your time and learn the ropes very slowly. In this business, impatience is poison.
There are strict legal definitions pertaining to this kind of buying and selling. Particularly if you intend to purchase and sell shares of stock, you’ll have to maintain a specific account minimum, which can be quite high, if you make more than three round-trip trades per week. However, most brokerages allow you to do as many forex trades as you want, without high account minimums. Forex trading is much less restricted than other forms of day trading. That’s probably the reason so many opt to deal with forex exclusively. Not only do your get the luxury of starting out with a modest amount of funds, but you don’t have to worry about round-trip limitations.