This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Odds are you’ve read the success stories all over the Internet about how traders have gone from rags to riches. These success stories used to only come through professional channels, with city slickers the ones cashing in. However, times have changed and these days anyone can get involved with the stock market in the hope of making mega money. If you have recently got involved with stock trading and want to know how you can start trading stocks for a living then keep reading.
Create a trading area
When it comes to trading stocks for a living one thing is for sure, should you wish to do it you can’t treat it like casual trading. You should create a “trading station” at home, which is free from both clutter and distractions. From a computer perspective you really only need something that meets the trading platform requirements, but make sure that it is the central piece within your designated trading area.
Set trading times
It is easy to have a trade “if and when you can” philosophy when it comes to the stock market, but if you want to start trading stocks for a living you need to have more discipline. Create set trading times that you can adhere to wherever possible and stick to them. Dipping in and out of the markets can crate a pattern of inconsistency and if you want to trade stocks for a living this must be avoided.
Undertake performance evaluations
Should you trade stocks for a living, you will go through good and bad times. You’re unlikely to call everything correctly – if it were that straightforward we’d all be millionaires! But that needn’t be a negative. Discipline, constant evaluation of your strategy and a cool head are what’s needed to see you through the rough patches, so when things aren’t going your way you won’t panic and throw more money at the problem, hoping it rights itself.
Create targets, set benchmarks, and take an in-depth look at your market moves to see where things are going right or wrong. You should also weigh up your performance against other traders of a similar skill level. By doing so you can highlight whether your issues are personal or market based. Evaluating your performance may not always make for pretty reading, but it is a must should you be trading stocks for a living.
Syed Rabbani (all views expressed above are my own)
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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