Everyone new to trading asks themselves and often others around them to do day trading for a living. People seem to want some shortcuts, but as soon as you get into trading and start talking to your broker, you will realize that trading for a living is possible. However, you still need a lot of knowledge, and most importantly, patience. Especially since the market can be very volatile if you do day trading. It can be very nerve-racking. So, here are essential things you should know about day trading for a living.
It is possible, but it’s not easy
Many more people are trading for a living, but if it were that comfortable, everyone would do it, and the economy would collapse. Who would work ordinary jobs? If you came across a mentor or someone you admire in the trading world, you would notice they are usually humble. What sets them apart from the rest is the fact they put in a lot of work, especially the time it takes to reach their financial goals. They know nobody’s going to give you money for free, nor will they gain it overnight. But having a plan keeps them motivated and in check when they start feeling insecure (everyone does, even if they don’t look like it). Your mindset should be focused on the fact that no matter how hard you think it’s going to be, it will be more challenging. Make peace with that fact, and you will be ready to day-trade.
Can I make millions?
Forex traders make and continue to make millions, but this isn’t the average case. Trading involves a lot of risks. Everything that can bring in big profits is risky. Otherwise, everyone would do it. Some think it’s easy, and they end up blowing all of their money for nothing. Why? Because they thought they were above dedication, commitment, and hard work. They didn’t want to make any plans.
Having a trading plan
A trading plan is a must, no matter what you trade, and your broker will tell you the same. Having a plan means having a goal, and that will be your guiding light when you feel exhausted. It will push you to put more time into your research, education, and trading methods. A trading plan will evolve as you do as a trader, but keep in mind that it should be one of the main things you do once you begin day-trading for a living. It will keep you in check, and it will make you redo your money management plan. You will think differently about everything regarding your income and way of life.
The best way to start
You should always talk to your broker, but before he tells you the same, we will tell you that you should never go overboard and invest too much in the beginning. Don’t quit your day job, and don’t put yourself in an uncomfortable situation where you will have to rely on trading to pay your bills, especially at the start. This sounds stressful because it is. You are putting unnecessary stress on yourself, resulting in bad decisions that can lead to bad day-trading results. Start small. Starting small is what will lead you to significant results. Decide the best time to sit and observe the market. Start off trading part-time. It should be the best because you will have more time to learn and improve your skills together with your trading strategy. Give yourself some space. Think long-term. Many disregard learning, but it can make or break you as a trader. Starting to day-trade for a living means you are willing to go through extensive learning and trial and error. You are in for the long haul. If you are not patient, you will learn from your mistakes, and eventually, you will be better at managing your risks. That’s why starting small is crucial.
Pros and cons of day trading
The best thing when you are day-trading for a living is that you can choose when you want to trade. Make a schedule that won’t stress you out, and learn to be your own boss. We mentioned you should start small, so consider trading as an amount of money that will slowly pile up. It will be your extra income. nobody said you have to make it your career. But if you are willing to go all-in, then dedicating yourself to day-trading starts with small steps.
You might feel like freelancers do because your office will be your laptop. Having internet connections means you will “work” wherever you want. If you realize you are skillful as a day-trader and one day it becomes your full-time job, you will answer no one, and you will have a job you love – which is rare nowadays. This is a skill. It will always be exciting, challenging and will motivate you to upgrade yourself. The cons are that day-trading is risky and challenging. We mentioned impulsiveness because there are lots of emotions involved when the market is as volatile as it is.
How to start day trading?
Despite what many think, you don’t need lots of money to start. The amount you need to create will depend on the company and the broker you choose. The best is not to use any money at all at the beginning. This means you will start with a demo account, where you will trade with “fake” money, so you can ease yourself into how the market works and respond to your actions. Once you start trading life, the focal point should be when you enter and exit trades during the same day. Pick hours when you want to trade, and stick to them. The market works 24/7, except weekends when you can revise your strategy and prepare yourself for the upcoming week. In a nutshell, a day trade is when you, a trader, buy and sell a stock within the same day. This isn’t a quick way to get cash, and we mentioned this numerous times because we are serious about it. It’s not gambling. It’s learning various tactics, knowing the economy, and how money works. The broker you choose is also important, so make sure he is licensed and certified.
In the end
Look for a broker who will be there to assist you and not go MIA when you need it. Customer support is also essential so check that out when you are opening an account. Pay attention to fees and commission rates, since as an active trader, you will be trading often. Don’t limit yourself to one stock, but instead, start investing in more than one. That way, you don’t risk your money completely. A trading platform is essential, as is picking one that suits your lifestyle – does it have an app as well, advanced charting, and tools you need? Tailor your trading approach to your needs and combine it with what needs to be done. Day-trading for a living can be a real thing if you are ready for everything that has to be done in the process. Good luck!