If you’re thinking about making a living by trading stocks full time, you’re probably a bit nervous about taking the plunge. After all, it’s a rough world out there in the stock market, and there’s no safety net that you don’t set up yourself if you hit the ground hard. But it’s not impossible to make a full time living with stock market trading. In fact, many people do, and the reason they are so successful is usually more for the fact that they know the ins and outs of the business. One service that can help the stock trader out is Jason Bond Picks, his stock picking service can make the difference between being success and not.
One easy trick that you can use whether you are a beginner or a veteran is obviously to find the markets that have the most potential and the lowest barrier to entry. This usually includes stocks that have horribly imbalanced supply and demand curves for whatever reason. Knowing how to capitalize on these opportunities is a great way to make almost guaranteed money. You should look into stock services that can help the stock trader out. Here are some recommended services.
Also be sure to always set price targets before committing to any position. Before trying to make any deal, determine what the minimal acceptable profit is, and the maximum amount of loss you are willing to take before dropping the deal. This is a great way to avoid the dangers of potential failures and possible greed issues by setting a range you are to operate within. Of course, if the market is exceptionally strong, you probably have enough reason to reevaluate your parameters after the initial target is reached.
You’ll also want to understand proper risk and reward ratios. You always want the potential for reward to be significantly higher than the potential for loss. In fact, you really want the potential for reward to be three times greater than the potential for risk. After all, any deal could go south when you least expect it, but what makes the risk worth it is that risk being lower than the potential payoff.
And most importantly, be patient. Despite the term ‘day trader’ most of them don’t actually trade something every day. Even if they are keeping an eye on the market throughout the entire day, they may not make any deals. That’s because no opportunities meet their criteria, and there’s no reason to. Many traders feel the need to do something every day just to ‘do something,’ which is a fatal error for many traders. Never jump the gun on something just because you feel the need to accomplish something. You don’t have to trade every day to be a full time trader. You only have to capitalize on the ideal opportunities you find.
In the end, there’s a lot more to being a successful full time stock trader, but these are the bases for your career in stock market trading if that’s the route you want to take. Being careful and not rushing into every deal is the most important thing for making money and, at the very least, optimizing your chances for success and reducing the risk of failure.
