Before you make up your mind to trade stocks for living, you need to understand the risks of day trading. When you trade in stocks, you’re exposed to financial risk, as you are in any self-employed business. You need to decide whether you have it in you to be a self-employed day trader? You need to ask yourself if you are prepared to forgo a regular salary and risk your own money?
Truth be told, not everyone is suited to being a day trader, just as not everyone is suited to being self-employed.
The Better Day Traders Must be Willing to Risk Losing Money
Salaried employees who fail will never give back their salaries to their employers, even if their employers incurred a loss. At the worst, salaried employees who perform poorly will be fired. In contrast, self-employed individuals (including day traders) will pay for every error with their own money. Even so, self-employed individuals who are successful will earn far more than the wildest dreams of most salaried employees.
The better self-employed day traders can work less, enjoy more, and profit 10 times greater than salaried employees, but must be willing to take the risk. Stock trading for a living is an independent business, but there are day trading mentors who are willing to help you when you start your day trading career. Setting up a business requires commitment, responsibility, investment, and risk.
Day Traders Must Have Persistence and Self-Control
Have you heard the claim that 90% of day traders fail? It’s 100% correct! The great majority of those losing day traders are people who think they can trade without learning the trade! There’s no need for a license or diploma to become a day trader. The conditions for joining the profession are simple: open a trading account, deposit funds, and begin buying and selling. Anyone filling these criteria can be defined as a “day trader.” Is it any wonder, then, that the probability of success is so low? The ones who succeed—accruing experience and knowledge, possibly by participating in a stock trading course—are the ones who will profit from the funds of those who don’t invest in knowledge. The more you learn, whether through a day trading course or speaking to a day trading mentor, the greater your chances of success.
Statistics show that only one in five new businesses survives and becomes successful. Is that a good reason not to open a business? Of course not! It’s a good reason to open five businesses in the hope that one of them will succeed! If you’re a reasonable person with a high level of determination, persistence, self-control, willingness to learn, and reasonable capital, you’ll succeed where most have failed. Don’t let statistics scare you. The ball is in your hands!