Everyone want to make tons of money from their trading sessions, but for most people this is impossible. So, how to trade for a living?
According to numerous studies and a large amount of anecdotal evidence, earning an income by day trading is indeed possible, but for most people, it is not probable.
Frequently, traders ask financial experts whether or not they can make a living by day trading and, commonly, they desire to know the strategies that these experienced traders use to earn large sums of money when trading stocks (or forex, or futures).
During the last 20 years, there has been a substantial rise in the number of traders who live in mansions that are located in Los Angeles, California, and many of these primarily trade while sitting on a beautiful beach with a laptop in their hands (lucky them).
These individuals earn thousands of dollars each month by day trading.
In spite of these successful traders, the majority of people who attempt to make day trading stocks for a living fail and lose significant portions of their investments.
These other speculators are usually enthusiastic, willing to spend many hours to learn the tricks of the trade and have large amounts of money to invest.
Many experts have determined that the reason that they fail is a lack of effective strategies or trading systems.
So we suggest you to see, at least, these 4 Timeless day trading strategies that still work.
The Freedom That Day Trading Provides
When considering the lifestyle that trading stocks can offer, you should imagine waking up every day at any time that you choose, going anywhere during the day, spending more time with your family members and your friends and enjoying long trips while still earning a high income.
In addition to these freedoms, day trading for a living offers the potential to earn a much larger income that you could ever make by working for somebody else.
Numerous studies have indicated that the amount of money that you can earn by working for a corporation is extremely limited! The company can opt to lower your salary or to replace you at any time, and in addition, the income that you earn every year is usually a fraction of the annual revenue that you make for the business.
The difference between working for a corporation and generating profits by investing is similar to the difference between being a movie star and making short films for fun.
Experienced traders can attest to the fact that day trading for a living provides absolutely limitless opportunities, and as your account’s balance grows, you will be able to earn a much larger profit for each successful trade that you execute.
Moreover, many brokers provide substantially discounted fees for investors who keep their balances above a certain amount and for clients who complete a particular number of trades every month.
How To Start Day Trading
In order to trade stocks successfully, you must create a strategy that takes advantage of the short-term fluctuations in the value of each stock.
Additionally, you can opt to analyze economic news and the demand for a company’s products and services in order to predict the long-term success of a business. Many brokers also advise people to diversify their investments when learning how to start day trading.
By buying small amounts of numerous stocks, one change in the market can not eliminate your account’s balance, and in addition, several analyses have shown that purchasing a wide range of stocks can help you to earn a consistent, stable income.
→ The Power of Diversification in Day Trading
Successful traders usually recommend that new traders set aside enough money to live for an entire year before they begin to trade. Having this amount of cash eliminates any pressure to earn a substantial amount of money quickly and allows you to slowly make relatively small trades.
How Emotions Affect Trading
Your feelings and circumstances can substantially impact your decisions while you are trading. Financial experts always recommend that a person shouldn’t place any trades when the individual is sad or angry (these emotions can destroy your account).
Furthermore, you must not let the initial rush of success cause you to become cocky and reckless. Even if your last 20 trades have been profitable, you must carefully research each transaction and treat every investment as if it was your only trade.
These are just some of the secrets on how to be a day trader (and here some mistakes you must avoid).
The Nature Of Trading Stocks
Most experts believe that the majority of traders who earn a stable income actually lose a small amount of money when completing approximately 35 percent of their transactions, yet the large profits that successful investments provide cover those losses.
As human beings, we want to always win, but in spite of this natural desire, a trader must not allow losing transactions to affect a long-term strategy or the investor’s emotional state.
→ How to Start Trading Again After a Big Loss
External useful Resources
How Much Can You Make as a Day Trader – Investopedia
Things You Learn After 1 Year of Day Trading for a Living – Andrew Kreimer