Trading For A Living - Daydreaming Or Realistic Alternative?
To be able to do trading for a living is a dream of countless part-time traders. One only has to look at the numerous seminars, training sessions and trading bush camps these traders attend to understand how intensely they want to do this. The lifestyle of a full-time trader looks so perfect: you never have to leave your desk, never have to face an angry boss. You can take leave whenever you want. You determine your own salary.
Without the right set of tools, this will stay an elusive dream for all those hapless part-time traders though. Let us take a look at what you will need to make it a reality.
To be successful as a full-time trader you have to understand something: that you are not really trading against the market. Neither are you trading against other traders. You are trading against yourself. The way you trade is heavily influenced by your approach to risk taking - and that will in turn determine your success or failure as a trader.
What exactly does that mean? It means that you can study all the rules, you can intellectually know the right thing to do in every possible set of circumstances. But if you have a tendency to hang on to losing trades in the hope that they will turn around, you will lose money time and again.
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 also have to decide which type of trader you want to become. Do you want to do day trading, swing trading or longer term trading. New traders always find day trading alluring. They are attracted by the idea of making quick money. And by the adrenalin of making profits and losses sometimes within the course of a few minutes. The fact is, however, that the market is much more unpredictable over the short term than the longer term.
You will also have to decide which market instruments you will be trading in: commodities, shares or currencies. Each one of them will require a different skill set and different tools. They also require a slightly different approach to trading. With share trading you must get intimate with the financial statements of the companies you want to trade in. You have to know the market for their products or services. With currency trading and commodities you have to study the underlying factors causing price movements in these instruments. Things like droughts, surpluses, inflation and interest rates.
You will also need a proper set of tools. If you are going to try your hand at day trading, you need to to get charting software that can visually display all the technical indicators which day traders use. You will have to choose two or three technical indicators and stick to them to make trading decisions - don't jump around using one today and another one tomorrow!
Furthermore you need to register with a company that will provide you with the latest prices for the instruments you want to trade in. Many free services provide delayed prices - which is good enough if you trade in a longer time frame. If you want to get involved in day trading, you absolutely have to make sure you get live prices though.
Trading for a living therefore does not have to remain a dream forever. Start with yourself. Get the necessary training, then learn to control yourself. Finally get the right tools and you are all set to become a successful full-time trader. - 23222
Without the right set of tools, this will stay an elusive dream for all those hapless part-time traders though. Let us take a look at what you will need to make it a reality.
To be successful as a full-time trader you have to understand something: that you are not really trading against the market. Neither are you trading against other traders. You are trading against yourself. The way you trade is heavily influenced by your approach to risk taking - and that will in turn determine your success or failure as a trader.
What exactly does that mean? It means that you can study all the rules, you can intellectually know the right thing to do in every possible set of circumstances. But if you have a tendency to hang on to losing trades in the hope that they will turn around, you will lose money time and again.
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 also have to decide which type of trader you want to become. Do you want to do day trading, swing trading or longer term trading. New traders always find day trading alluring. They are attracted by the idea of making quick money. And by the adrenalin of making profits and losses sometimes within the course of a few minutes. The fact is, however, that the market is much more unpredictable over the short term than the longer term.
You will also have to decide which market instruments you will be trading in: commodities, shares or currencies. Each one of them will require a different skill set and different tools. They also require a slightly different approach to trading. With share trading you must get intimate with the financial statements of the companies you want to trade in. You have to know the market for their products or services. With currency trading and commodities you have to study the underlying factors causing price movements in these instruments. Things like droughts, surpluses, inflation and interest rates.
You will also need a proper set of tools. If you are going to try your hand at day trading, you need to to get charting software that can visually display all the technical indicators which day traders use. You will have to choose two or three technical indicators and stick to them to make trading decisions - don't jump around using one today and another one tomorrow!
Furthermore you need to register with a company that will provide you with the latest prices for the instruments you want to trade in. Many free services provide delayed prices - which is good enough if you trade in a longer time frame. If you want to get involved in day trading, you absolutely have to make sure you get live prices though.
Trading for a living therefore does not have to remain a dream forever. Start with yourself. Get the necessary training, then learn to control yourself. Finally get the right tools and you are all set to become a successful full-time trader. - 23222
About the Author:
Are you tired of scraping by at your job? Why not get into the stock market and make some money the smart way... with the guidance of artificial intelligence! Get more info about trading for a living... Also check the very best stock picking software.
posted by X - Men @ 10:15 AM
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