Simple Strategies to Make Trading a Full-Time Gig – Introduction
Many people around the world are in search of alternative sources of income. This is because of several factors. First, they have seen their colleagues make money and eventually leave employment to do part-time jobs. Second, there have been a lot of emphasis on passive income where people can make money without doing a lot of work. Third, wages are not growing. In fact, in a monthly report last week, it was noted that wages in the United States were reducing. Finally, 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% this year alone. This reminds me 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.
- The first strategy to make trading a part-time gig is to start early. For my part, I started trading when I was 25 years old. I consider this a little late. 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.
- The second strategy is to 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.
- Third, you need to learn about the economy and what moves the market in the long term and short term. By having a good understanding about the economy, you will be able to get inside the minds of other traders, investors, and analysts. Remember that the performance of the economy plays a very integral part on the movements of the market. A good place to start is by reading or watching a video created by Ray Dalio of Bridgewater Investors on how the economic machine works.
- Fourth, 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.
- Finally, 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.
Simple Strategies to Make Trading a Full-Time Gig – Useful Tips:
- To find out more, please go to Investors;
- Another interesting reading on Learntotradethemarket;
- Discover more by visiting Investopedia.