Can You Make A Living Out Of Stock Market Trading?

Discussion in 'General Trading Discussion' started by Buyonthedips, Aug 6, 2019.

  1. Buyonthedips

    Buyonthedips Senior Investor

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    My general feeling is that it is difficult to make a living out of stock market trading without other forms of income. If this was your only form of income it would place enormous pressure on you to bank profits on a regular basis to fund your everyday living costs. Does anybody else have any thoughts?
     
  2. J_C_Anderson

    J_C_Anderson Senior Investor

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    For sure, it is possible to be a full time trader and make trading a sole source of income, but it is very difficult and requires several conditions to be met.
    1. One would need relatively large account to be able to earn enough money to cover daily needs without exposing the account to high risk. Many traders start with small account and then use huge leverage and position size to be able to earn sufficient profit. This approach is wrong since it would actually lead to blowing up the account. Strategies used for trading for living should be conservative.
    2. Each full time trader shall have funds reserved for unfavourable situations. For example, the amount of money on separate bank account should be substantial enough to cover daily expences for several months. Sometimes traders end month with a loss, so they need to have money to pass such difficult periods and reduce the psychological pressure that could lead to overtrading. If trader needs money as soon, as possible, he would more likely make emotional trades and violate the rules prescribed by trading system to earn more and faster while such approach almost always leads to additional losses. That is why it is important for the trader to be financially protected.
     
  3. Chartman

    Chartman Senior Investor

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    If you are purely living off your monthly profits I would say no. However, as mentioned above, if you have a reserve to see you through the tricky patches (of which there will be many) then maybe, yes maybe you can. It does ramp up the pressure though.
     
  4. Brentwood

    Brentwood Senior Investor

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    The key is to understand how it really works and who is right to work with. I was losing funds to a broker and by the time i realised it, i had already lost $52000 which was over half of my savings. I met a friendly trader and she directed me to the recovery agent Mr Bart Kasch. He helped me recover all my money, every penny. Referred him to friends and colleagues already, you can contact him if you need help at [email protected]
     
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