Stock trading is a viable job option, but only for those ready to scale a steep learning curve. Trading for a living can be both exciting and rewarding. It allows people to set their job hours and be their boss. All you need is a reliable internet connection, a trading account and a computer or a tablet. Thankfully, trading is all about good instincts, understanding the pulse of the market as well as being able to time the actions correctly.
Trading looks deceptively easy, but it’s not!
Trading is quite easy to get into. It takes only a couple of hours to set up the account and visit a few online trading websites. Then, why are there so very few successful traders out there? Being successful in trading takes quite some time. Learning the intricate mechanisms is not as easy as it seems from the outside and theoretical knowledge is not enough to ensure a rewarding trading experience. Here are a few quick facts about trading that can help you understand the difficulty level you may be experiencing right now.
- The failure rate of amateur traders is about 90% within the first year.
- Trading is all about risks, and there is no way of eliminating the risk by 100%.
- A small trading account involves small risks, but it also yields small rewards. Making impressive amounts of money with a small trading account can take a lot of time.
- There are several independent traders, who earn comfortably to support their lifestyle, but it takes extensive dedication to become a millionaire from small account trading.
- All traders have had their fair share of losing trades. No trading system can win all the time.
Opening a trading account and hitting your first “buy” makes the process seem deceptively easy. However, that is hardly the case. Of the failing traders, 90% simply fail because they lack their acumen necessary to understand the market trends and future possibilities. Anyone can open a trading account as well as buy their first stock or share but staying on board for years and making good money from it takes impeccable logic, understanding of share market finances and NAB Share History interpretation skills.
Who can become a good trader?
There is no one-click option to success, and you have probably heard this ad nauseam. What late night TV commercials, website ads and pop-ups try to tell you is far away from the truth. If you know a trader, who has become a millionaire by trading stocks within a short time, he is the exception. People need to spend months trying to learn when to buy, hold and sell – and these are just the basics of any trading process. The world of trading is full of uncertainties and risks. You may be working 40 hour weeks monitoring your account, adding investments and selling some, but there is no guarantee that you will be at the winning end of the bargain.
- Before you think of switching to trading as a profession, you should try to look for the answers to a few questions –
- How do you react to losing? Are you a sore loser or do you accept it as a part of the journey?
- Do you have the time and energy to invest in stocks?
- Since you want to try a new profession, what does your family have to say about it?
- Money attracts money; you will need initial investments to make money in the stock market. Do you have money you can spare?
- What are your expectations from trading? Do you want to make a moderate living or do you dream of owning a jet sky and a mansion in one month?
- Most importantly, do you stick to plans? Can you hold it out till you succeed or do you give up easily?
Answering these few questions will help you come face to face with your trading aptitude. Not all people are fit to be pilots or astronauts. Therefore, there is no reason to believe that stock trading as well as share market investment is everyone’s cup of tea. There are several Hollywood celebrities and international stars, who have lost over millions in the stock market due to bad buy-sell decisions. It is essential to know your shortcomings and strengths before you start investing serious money in the market.
Trading is not another hobby or a pastime. It is a vocation that has the power to run families as well as fulfil dreams. The right kind of training and acquired skills have inspired several rags to riches stories in the past. There is no reason yours cannot be one. Be careful regarding your choice of broking firm and always make decisions spirited by logic.