Many people are interested in traders who make a profit from financial transactions. Recently, it seems that some have taken to become traders as a side business and to support their household budget, even if they do not earn hundreds of millions of dollars. With more study and experience, that is not unachievable.
A person who trades financial products such as stocks, bonds, and foreign exchange to make a profit. The price of financial products fluctuates up and down. By repeating the buying and selling, the difference is the margin.
Traders may work as a company business or as individuals. If run as a business, you will use the company’s funds, but if you are an individual, you will trade with your own funds. Individuals who repeat short-term trading of stocks and FX (Foreign Exchange Margin Trading) are often called day traders.
To become an individual trader, you first need your own funds. At a minimum, you can buy and sell financial products for a few thousand dollars. If you have a goal of earning 100,000 dollars by making a 10% profit a month, you will need 1 million dollars. When actually trading, you also need to register with the account of a securities company or a Forex company. In addition, by creating an environment that makes it easy to trade on a personal computer, you can check information to buy and sell effortlessly.
People who live solely on stock trading are called full-time traders.
Become a Successful Trader
The position of stock traders, such as full-time traders and office worker traders, differs depending on how they interact with the daily market. The usual convention to trading is below:
- Establishment of investment method that cannot be won by luck alone:
- If the stock you bought could be worth 10 times more by sheer luck
- If it’s just “lucky” and successful, not the investment you’ve analyzed and aimed at, you’re not a real professional trader.
Having a large amount of operating funds at hand is a great strength, but if you leave it to “luck” and continue to operate in this manner, you are more likely to lose funds due to a sudden big investment failure. The money you earn from trading “luck” is therefore quickly gone.
If you spend time and money and aim to become a billion-dollar trader by establishing a professional trading method to accumulate profits, you have the ability to recover, and you are more likely to succeed as a professional trader even if you make a mistake.
Don’t rush! It takes time to acquire a view of the market
It takes time to trade according to not only “luck” and the “market price” but also an “established trading method” to generate stable profits. If you cannot be patient, it will be very difficult to become a “professional trader”.
“Stable and continuous profitability” is an absolute requirement for professional traders. In fact, it is said that about 10% of traders continue to make profits over a long period.
If you can gain experience as a trader, develop your skills, and acquire the trading method that suits you, the path to becoming a full-time trader may not be far away.
Need enough money to wait for a chance:
If you trade every day, you will of course make repeated mistakes. It will be difficult if the investment funds run out before you can demonstrate your skills as a trader. Therefore, start with an amount that will not affect your life even if it is lost.
Alternatively, trading with an amount that does not cause financial damage to you, such as using a stock trading simulation, and gaining experience is the first step to becoming a full-time trader.
Advantages of specialized traders
- You can get big profits depending on your ability:
Stock traders can make as much profit as they want, as long as they have the ability. It is also possible for an individual to earn hundreds of millions or even billions
- You can live at your own pace:
Full-time traders generally do not have to go to work as office workers and can trade anywhere with a personal computer and an internet connection.
You can check the market price at any time
The working hours of a typical office worker often overlap with the hours when the stock market is open, which limits trading. As a full-time trader, you can spend as much time as you like on trading, which has the advantage of increasing your trading opportunities.
In addition, as you can check the market price at any time, you can quickly respond to sudden changes, leading to reduced loss and reduced risk.
Disadvantages of specialized traders
- Income becomes unstable:
Unlike salaried individuals who have a stable monthly income, the income of a full-time trader depends on the results of daily trading, and the income becomes unreliable.
Even if the salary is low for office workers, it will not be negative, but it is quite possible that full-time traders could turn negative.
- Social position/Credit:
Because the income is not stable, there may be problems in various aspects such as rental contracts, loans, and credit cards, and a decrease in interaction and social connection with people
When you become a full-time trader, there is no such thing as relationships at work. People used to think that relationships at work were troublesome, but when this disappeared, they missed socializing with their colleagues.
When it comes to working people, many people are dominated by work-related relationships, and if nothing is done after that, the chances of interacting with people will decrease.
Living on stocks alone as a full-time trader is no easy task. Professional traders have their advantages, but they also come with risks and disadvantages.
If you want to become a full-time trader, you must understand the advantages and disadvantages and take a firm view.
If you establish your own investment style that can make a continuous profit, referring to the style of a successful pre-existing professional trader, and always being prepared, then becoming a full-time trader is a viable option.