For many people, the idea of being a full-time trader on the stock market is a tempting prospect. The ability to be your own boss, to do something you love and have more freedom in your career attracts many people to trading. If you are thinking of making the move to full-time trading, then all this is possible. However, it is important to go into it with your eyes open, knowing what it takes to succeed in this sector.
What do you need to trade full-time successfully?
When moving into stocks and shares as a full-time trader, you need to be aware beforehand of what it takes to make it work. Here are some of the main things to think about:
Risk-tolerance
Let’s be clear here – trading for real on the markets involves risk and the potential to lose money. To succeed as a full-time trader, this has to be something you can handle on a daily basis. You must be comfortable risking your own money in the expectation of making some, but with no absolute guarantees. In addition, you must be able to handle trades going against you and losing money on occasions.
Capital
Of course, to trade full-time, you need some money to begin with. The key here is having enough capital in your trading account at the start to allow you to trade as you want to and not be under-capitalized. As this will determine how you make your living, your starting account balance needs to be sufficient to allow you to put the trades on that you wish to, at the right size to generate your income.
Thorough market knowledge
Only a fool would begin trading without first getting a firm handle on how the stock exchanges work and how to identify which shares to invest in. To succeed as a full-time trader, you must know all the basics of the stock exchange and all the terminology involved. This will allow you to start trading from a position of knowledge, which is vital.
Latest news and analysis
Even the most experienced full-time traders will need the latest news and analysis to help them make their trading decisions. Share tip articles and market news feeds are essential to help keep you right on the cutting-edge of what is happening and how it might affect your shares.
Self-confidence
This is important too but something that you might find hard to do at first. Once you have got a grip on the basics of how it all works and taken in the latest market news, you then need the confidence to decide which shares are worth investing in. Once you develop this instinct, it will help greatly in making every investment you make more likely to succeed.
Making the move to full-time trading
If you currently work in another job and want to trade the financial markets full-time, it is entirely possible. The real key is to brush up on the above before you start to invest real money, as you will be in a much better position to do so then. Although there may be some bumps along the way, once you have gained actual trading experience, it should all become a lot smoother.
