Many people around the world are in search of alternative sources of income. This is because of several factors.
- They have seen their colleagues make money and eventually leave employment to do part-time jobs.
- There have been a lot of emphasis on passive income where people can make money without doing a lot of work.
- Wages are not growing.
- People want to keep doing what they love best.
Trading is one of the major things that more people are trying. This is because of the ability of making more money without doing much. They can go to the market, buy an asset, and then wait for its price to appreciate.
Look at the world of cryptocurrencies where bitcoins and Ethereum price has gained by more than 200% in 2017 alone. This reminds us of the 2000s when most people in the United States were traders, buying stakes in companies that had a dot com at the suffix.
At the end, when the market collapsed, they lost most of their funds.
Before all.. have a plan!
First of all, you need to have a short term and a strategic plan. This plan should be focused on where you are right now and where you will be in future.
For instance, if you are a college student, you should plan whether you will get into trading immediately after college or you will be employed at first. If you are already employed, you should plan how you will quit your job.
Remember, trading is a risky business and you should trade with money you don’t need. Therefore, you should do the best that you can to come up with a plan of your future.
→ 5 Mistakes to Avoid Becoming a Full-Time Trader
Some Strategies to become a full time trader
The first tips (this cannot be considered a strategy) to make trading a part-time gig is to start early (if possible, before 25). A look at some of the most successful traders shows that they started trading in their teens.
Billionaire Ken Griffin who started Citadel investments started his fund in his college dormitory when he was 19 years old. George Soros, the tycoon who broke the bank of England started his fund when he was 18 years and so did Buffet and Steve Cohen.
The earlier you start, the better it is for you because you are at a position to make mistakes.
..and as a part time
You should start trading as a part time job. This will help you master the art of trading while you are still employed or while you are at your work place.
If you are still employed, remember to work as if nothing changed. This is because you want a good recommendation from your boss.
Only quit your job after making sure you know how to trade and how to protect your trades.
Take time to learn the fundamentals of trading and investing. The unfortunate thing about most new traders is that they don’t take the long route to learning.
They deposit money in their brokers’ account and then start buying things that other traders are buying.
They forget that most of these traders and investors have spent decades learning how to trade. Ultimately, they lose money when the stocks or assets they are buying collapse.
Therefore, before you start trading, make sure that you take time to read intensively for a while. It will help you avoid making simple mistakes.
You need to practice and test your strategy. This is another important step that many traders ignore. They just start trading without testing their strategy. Ultimately, they will lose money!
Therefore, it is very important for you to practice and test the strategy for a period of not less than two months.
Combine trading with strategic investing
The beauty of trading is that it can make you a lot of money within a short time. However, the downside risks are also huge.
To protect your finances, you should instead combine short-term trading with investing. In this, you should invest in fixed income like bonds. You should also invest in high quality dividend-paying companies like Apple and Microsoft.
The benefit of doing this is that it will be a good way of ensuring that you have a safety net in case the trading doesn’t work out fine.
Start a trading floor
You can also benefit by starting a trading floor. A trading floor gives you an opportunity to trade in large volumes using proven strategies.
Day Trade the World is the biggest day trading floor in the world with partners in every continent.
As a manager of a floor, you will have the people and the tools to execute trades for you. The floor will make trading a very interesting thing for you.