Possible to make a living with stock trading?
I know there are many small active traders in the market.. and making profits here and there. Would like to know whether it possible to male a living with stock trading alone? I mean getting constant in flow of small (or medium) of cash .. here and there? Recently lost my job.. and wondering whether is a good bet to trade and earn some side income..while weathering through this tough period of time Any professional opinion or feedback? Thank you in advance for your input.
TEH : My honest opinions. Trading is a very difficult and enduring job. If oneis a novice, there is no way we should take trading as full time job. So, yes ... Get a job and learn to trade, say for 5-10years first. See if u r doing well, have the traits of good traders. Learning is very difficult too, so some courses might help to shorten your learning curves. Do not fall for those software salesmen and those boasting around in forum. Think logically is very crucial in trading. Do not let greed overcome your sensible logic. Think over it. Good luck.
This is one good question some newbies/novices might ponder. I do know it is very difficult, as I am taking painful journey in my trading adventure. It is not a 'job' many could take. So, I do not think so any sensible and logical person should do that. We need years of learning and doing ... to gain experiences and confidence. We need to get out of the norm and ignore the whole herds, while using that to our advantages. We need to read news between the lines ... and reading charts, using just simple planning. In short, we need to be logical and understand that whatever we read about how easy trading could be is pure 'saleman' gimmicks. We need to be strong mentally to absorb those information, digest them and ... re-think. Seriously, majority in markets DO NOT have logics. That is the main ingredient in a trader's mind. If you don't have that, trading is not for you. Period.
Someone posted this blog-site, which writing posted two interesting articles.
Comment : Earning constant income by Trading Stock is Possible*. The important traits that you need to manage is your EMOTION MGMT. Even if you have learn all your skills or you have pile of cash to invest you will still fall to cave when your emotion out of control (greed, fears, hope, panic, external pressure, etc). The 2nd would be the MONEY MGMT, how well you plan and execute together with your EMOTION. This need years to build up and need proper discipline. I would say, initially by practising on your real trading (not on paper trade, as this will not impact your emotion). Once your money and emotion put to test in real market live, you will know what exactly I mean. I would like to recommend a book for your read - Trading for Living by Dr. Alexander Elder. It will be good guide on your way to achieve full time stock trading.
Then, in the good comment, he mentioned REAL trades. Mind you, majority of those in forums just followers and newbies/novices ... where some do not even take trades!! Without real trading, you will NOT gain experiences. Without the real pain, real planning ... one will not know how much of works needed to make a good trade. Otherwise, it would be 'random' and losing money is being a norm. If we are going to be full-time trading, when our rice-bowl depending on our trading income, that will give us the unnecessary STRESS. How many of us willing to take few years to LEARN? And it is not measure by the number of ours we are so-called doing homework? Majority buying stocks are like buying a vege in market. Some don't even know what they are buying ... is RISKY. For example, buying AMedia or JCY ... or KNM. These gamblers/punters could only hope it will rebound.
One bad trade could wipe-out our many good trades. Tell me about it, I have been there ... and at current level, I do still make many mistakes/blunders. After all, I am still a novice ... I m still learning. To control emotion and to manage well the risk, we need to be strong. We need to last the pace ... and continue to learn. HOW MANY could you find having such characters?
Article 2 : People typically underestimate the amount of work that is necessary to learn how to trade stocks for a living. They seem to think stock trading can be learned in a few simple lessons. After all, isn’t it only a matter of learning how to "buy low" and "sell high," or invest in "story" stocks? The attitudes expressed and the questions asked by would-be trainees seem to suggest that people are looking for an ad that reads, "Learn how to use Bollinger bands, candlestick analysis, fibonacci retracements and the MACD by glancing over our 8-page easy to read pamphlet.."
You see, many ignorants fall into the trap of these advertisements. Yes, the one you saw in newspaper. The one they give you in pamphlets ... when you went for your 'free' market-talk. The one from your friendly brokers. These are people who WANT you to trade, in order to earn commissions. These are sales-people, and getting commisions if they managed to get you to register in one of those sure-win trading courses. You get to BELIEVE that those BB or FR work-out perfectly in trading your stocks, and decided to go for their preview talk. Well ... only for TODAY, we are giving you 10% discount from our sure-win trading system, with hundreds of past graduates and so many good testimonials, you can't get it wrong?
That is why REAL hard-work I am sharing in my trading classes will NOT sell well. NO ONE want to listen to your losses ... no one interested about what home-works to be done. What they are(illogical) think of is ... there MUST be a system or a software which could simplify our trading with high percent chances of profitting? After-all, tell me how do they advertised that their claimed system(s) managed to catch BHIC at RM2 ... and today after 2 weeks, it is at RM2.50? See? Or ... it will be advertise that their system detected sellers in AMedia at 1.11 level and sell signals sent out BEFORE the huge sell down? Any proof on these?
Want to know further ... please register with only RMXXX tonight to get the special 10% discount. We do accept credit cards or instalments. Bank-loans could be arranged.
If you have not attended many market talks, and those sure-win previews ... and personally REALLY went through their trainings(you have to hope the trainers are active TRADERS themselves, otherwise they might do not know some of the stocks you are talking about!). It is that simple ... packaging, marketing, products ... sales gimmicks, free door-gifts ... through many media-channels, collaborate with banks or broker houses ... it sells well.
What is pamphlet saying again? Yes ... how to profit 20% consistently trading using MACD? Wow ... with words like Moving Average Convergence Divergence, one can't get it wrong, right? It is a big word, you see. No-one-the they could be full-time trader and gain 20% for every trades they made? They have the secrets and systems we do not have!! So, what is paying few thousands for it, right?
So, you quit your job ... now, thinking of profitting from markets!! Wah-lau ... it really works!! Then, you think you are good ... you continue to do such ... started to lose and lose ... you feel it is no-luck case. You try to find solutions ... the answers just a blank.
Hmm ... I am talking about myself, no worry. It is a story, made-up and no intention to point to anyone. I m just pointing out how naive majority in markets could be. They took years to get a degree, licence to drive ... but somehow, it doesnt occir to them that TRADING IS RISKIER than driving. The skills and learning is MUCH MORE tougher than your simple degree. That one, just study .... can pass or even score. Trading ....needs MORE than all these.
Get real. Until one wants to get real, no one could help them. It is ... well, their money they are losing, anyway.
Good luck again.
Got to go for my group gathering.
p/s : I am glad he decided to think it over and weighing others opinion. Good.