Trading As A Career: Everything You Need To Know

With increasing technological advancement comes easy access to the financial market. Traders can now trade from anywhere at any time. Many investors and traders are already making the switch to make trading into a career - that is, a full-time job.

Some consider forex a quick money-making scheme; the truth is that trading as a career is highly challenging and associated with many risks. However, some traders have already made the switch, making trading their primary income source, and have become successful.

This article serves as a guide for anyone looking to make trading a career. We'll provide you with everything you need to know and what it takes to be a career trader.

Is It Possible To Trade For A Living?

Yes. Many traders are already taking the step to make day trading their main source of livelihood. With the advanced technology readily available, anyone with a smartphone and access to the internet can become a trader and make a living from trading the financial market.

Now many online trading platforms and apps can help you trade with your phone or PC anytime and anywhere in the world. MTrading is a typical example of a trading platform that runs both web and mobile trading services.  

Trading as a career is desirable because it allows you to work from the comfort of your home. Once you have an internet connection, you can trade from anywhere. However, like any job, you'd need to put in the body of work to become a successful career trader.

What Is Day Trading?

Day trading involves trading financial instruments like stocks, commodities, forex, and crypto for daily profit. The idea is to leverage the volatility of the financial market. Unlike investing, where traders and investors have a long-term strategy, day traders rely on little price fluctuations for quick profits.

How To Become A Professional Day Trader?

The first step to becoming a professional trader is to set up a trading account through an online trading platform or a brokerage app.

After creating your trading account, the next thing is to fund it, so you can start trading. Depending on your investment plan, you can start with as little as $500. Then, you can start trading whatever financial instruments of your choice.

Do I Have to Learn Before I Start Trading?

Definitely! It is always better to have enough knowledge of a particular business before venturing into it; the same applies to trading. To utilize trading as a source of income, you must learn the skill.

There are different books, online courses, and videos, among other educational materials, to help learn the art of trading the financial market.

What Do I Need To Become A Successful Trader?

Registering a brokerage account with a trading platform is the first step to success as a trader. The next step is internet access. As a day trader, you'd need fast internet access with the right specifications for your online trading platform.

In addition, you may need to pay attention to the market to notice the price fluctuations quickly. Some traders choose to stay in a quiet and comfy workspace to avoid distractions.

What Are The Risks Of Becoming A Career Trader?

You must have heard that the financial market is full of risks; day trading even comes with more risks. If you are not careful, trading can lead to a financial wreck, especially for those without enough funds.

Note that you shouldn't trade with borrowed money. As a general rule, you shouldn't trade with money you are uncomfortable giving out. Before taking any position as you trade, understand the risk-to-reward ratio.

What Are The Benefits of Becoming A Career Trader?

Just as the trading business has risks, you can make a large income if you trade well, with the market favoring your positions. Putting in the work to develop yourself and become a highly skilled trader can put you in a position where you make a lot of money from trading different financial instruments.

Another benefit of becoming a career trader is that you do not have a salary cap. The more the trade favors you, the more you can make in a single day. You can make six figures or more annually with enough capital and high-end trading skills.

In addition, it provides you with flexibility. You are your own boss, so you can work at any time you like. You are free to set up your working hours to suit your taste.

What are the Shortcomings of Becoming a Career Trader?

The main disadvantage of trading for leisure or a career is the high risk, but if you are not careful, it can make or mar you. This career path is for those willing to take high risks on their savings and investments. Trading is a high-risk investment plan with little assurance of success.

The lack of a fixed salary may be a disadvantage - your salary depends on your success in the market. For example, you can make $200,000 in a year and barely make $50,000 in the next. It's even possible that you fail to make any profit. It's that risky! It's important to note that your success in the market today does not mean you'd succeed tomorrow.

In addition, staring at the screen for long hours may be monotonous, especially if you are not making profits.

What Do Career Traders Trade?

There are different financial tools available to traders to make money. Some traders focus on trading the foreign exchange market before its low capital requirements and high liquidity. Others may stick to the trading of stocks like in the traditional financial market.

Other financial instruments available for career traders include cryptocurrency, futures, ETFs, options, CFDs, etc. However, crypto and forex trading seem to be gaining more popularity over other financial instruments.

Conclusion

Trading as a career is a high-risk investment, though, with the right skills, you can make it your primary source of livelihood. Should you intend to quit your job and focus solely on trading as your day job? You need to continue improving and educating yourself and doing as much research as possible.

If you are enthusiastic about it and can work to continue improving yourself as a trader, you can become a successful career trader.