When it comes to trading stocks, it can look very appealing to beginners and outsiders. The money that can be made is incredible and the lifestyle of some traders attracts individuals who are looking for an escape from the daily grind. Many people would love to quit their day jobs and learn how to become a day trader if they had the chance. But is this actually possible?
With the development of technology and because the cheap software that is now available. It is possible for average Joe’s to get into trading on the stock market with minimal upfront cost and knowledge. Of course, if you are see success when you first start trading, you need to have the investments and the knowledge, otherwise the stock market will eat you up. This article will go through the ways in which you can get involved with the stock market and how it is possible for you do it full time with the right information and tech.
What Options Do You Have?
With the advancements in technology and online brokers, you can now trader full-time without an impressive education or the necessary connections. Before, you would have had to go to an expensive college and would have had to know some of the individuals already working on the trade flaws.
Developments in IT and software now make it completely possible for people to quit their jobs and craft the lifestyle they want. However, there are also a number of considerations to make before you get involved in trading, as it is not an easy-to-play game.
There are two options you can take when it comes to working independently and full-time when it comes to trading. You can either trade solo or use proprietary firms.
Day Trading Solo
This is the preferred method to get into day trading and is the main method that people first have when they think of independent trading. The ability to now trade form home is a direct result of the advances in technology. You can now have access to the charts and stocks from a laptop, which can work from anywhere in the world with an internet connection. This option is flexible and works around your time, which is why it is the true trading dream.
The main issue with this option is that it happens to be the option with the largest investment. Unless you go with discount online brokers, you will have to pay a large sum of money to trade on the stock market. A minimum equity requirement of $25,000 is set and this has to be maintained in order to trade. As well as equity, you also need the equipment and computer power to make sure your trades are secure. The last thing you want is your computer failing when you have just placed an order.
Using Proprietary Firms
Although trading independently is the dream, many individuals will join a firm because of their low commission fees and training programs. This is the alternative to working home and essentially throws you into the pit with other successful traders. The benefit with this method is that you’ll be spending firm money and the risk will be managed externally. They will teach you and advise you on trades and you will get a percentage of the net earnings.
Working for a firm is a great way to get started but many firms do require you have some educational knowledge or experience in the field before you’re hired. In some cases, the firm may allow you to work from home but this is rare.
Should You Day Trade?
Working as a full-time trader is a great job and you can earn a lot of money if you’re good at it. There are two options available to you if you want to trade full-time and you now don’t need a fancy education or network to get involved. Trading is difficult and you need to assess your character before you get involved. This is truer for individuals who are solo trading, as the capital used will be from your bank account.