The work of day traders is very stressful, and before you start your own business as a day trader, you need to have an idea of what they all are and the variety of different day traders. Before you decide to become a self-employed day trader, decide what kind you want to become. Everyone has a different experience and everyone has their advantages and disadvantages. When many people think of a self-employed day trader, they may think of someone who is in their own room, has their setup in their home, and looks at charts in their underwear. These are called “retail traders” and are generally considered part of the retail market. But in fact, many retailers are also self-employed in institutions.
First, you are subject to the operating costs of a business. You need to rent your workstation as well as your trading software. All this costs at least 2,000 euros per month. This means that you need to earn at least 2,000 euros to break even in just one month. However, this cost is not free – you generally get excellent execution times and state-of-the-art software. The great thing about being a trader is the fact that you are on a physical level. You can feel the excitement of people talking about trading positions, and you can develop a sixth sense when someone else makes a trade – you can benefit from simply being on the spot.
Trade at home
This doesn’t mean you can’t build an environment at home where you trade with others. In fact, it’s highly recommended that you set up your own study. Online groups can be found on Skype, communities and forums, and trading rooms. There you can share information with others. However, there are some things you need to consider. First, you will lose days. If the markets just don’t keep up, it’s hard to maintain morale and motivation and not resort to psychological influences. Imagine taking the tenth setup only to see the markets beat you out of your position again! A week can seem like a long time, and it is therefore advisable to build a fail-safe into your planning. Who do you want to talk to when you need help? This is where online communities and online coaching sessions help – simply because you can connect with others.
Retail software is powerful and simple
As discussed earlier, the technology available to retailers is becoming more sophisticated and easier to use. In fact, some home dealers prefer the software programs available to retail markets simply because of their usability. Most of the time, the software is provided free of charge by a broker and can be customized to suit the trader. Sites like bitreviews.com can be used to compare the best deals. This also means that the cost of doing business is very low, as you don’t have to pay for a professional setup and maintain it every month.
Keep in touch with the outside world
Living as a day trader on your own can be tough and you need to make sure you have sufficient contact with others. The hardest part is the lack of contact with other people. It’s easy to go a whole week without meeting and talking to people. Most people who work in an office take this for granted.
This is amplified as a trader because you never know what the outcome of your efforts will be. Like any other trading, day trading is a game of probabilities and you never know how your month will end and how much money you will make. However, you also need to make sure that you talk to other traders about your trading. Your friends outside of this trading world will understand very little about their line of work. You need contact with people who have exactly the same problems as you do. For this reason, it is very prudent to make sure that you become part of a forum or attend live coaching webinars on eToro where you can interact with other traders.
Part-time and multiple sources of income
Being a day trader does not mean that you also sit in front of your computer all day. The fact is that many traders need to look at a set of charts every hour, four hours, or just once a day. You are still a day trader, but instead of taking many small trades that only last a short time, you take far fewer trades that last a few hours, days or even weeks. Your interaction with the financial markets is actually very minimal. This means you have plenty of time to do other things. Perfect if you are a freelance writer, self-employed plumber, electrician, work in a retail store or in a hospital where you have shift work. This also means that you have to take the burden off of making your money through trading alone. The advantage of this type of day job is that you have to remove the pressure of having to pay for rent, groceries, and other essentials in the face of a possible losing month.
If you are self-employed, you need to make sure you have food in the fridge at the end of the day. A bad month can lead to a downward spiral as you constantly try to fight the markets and make subjective trading decisions. If you decide to become a self-employed day trader, you need to make sure you have a primary income other than trading, at least in the beginning. This way, a good day, week or month becomes an extra income rather than an essential component. So you are not primarily dependent on the money from trading. It is a little extra pocket money
The right approach
In conclusion, day trading can be the best job in the world and calls for financial freedom. However, only if you take the best approach to the job and follow the steps described above. It all depends on how you go about it and if you go about it properly. To start your own business, startup capital is required. You need to be able to handle expenses and costs, as well as consider how advanced you are in your trading knowledge to be able to make a living.
Education is everything
You need to know what you are doing, and your education is extremely important. Take your time to understand everything, especially if you want to start your own business. As long as you go about it the right way and have the right setup from the start, the answer is simple. What is it like to be a self-employed day trader? It’s the best job in the world!