As a founder of this site, I get lot of mails/messages/queries asking –
Whether I’m a full time trader?
Whether day trading can be considered as a business?
Whether one should start stock trading as part-time or full time?
Let me start on with myself. Believe me, I’m not a full time trader – because I don’t need to give whole lot of my time for trading. I do trade daily for few minutes at some specific time of the day. And to do that I don’t have to leave my present job or stop my work. I have a specific day trading plan, I implement it accordingly. In fact I have a trading plan for the entire year. I take “Stock Trading” just as any other business. Maintain my trading records, profit & loss account. I review my trading account & capital monthly – checking how much I have added on to it at the end of every month.
I’m an Engineer and have an independent Business of “Project Consultancy”. I travel extensively, visit project sites, and attend meetings. And in between I manage to trade daily according to my Trading Plan.
Not only me, even my wife (who has now left her full-time job to attend to kids) and my father (who’s retired) trade daily for few minutes from their individual trading accounts. They use same trading plan and strategies that I use. They make anywhere between Rs.40000-60000 per month from their accounts. We have set our monthly targets for our individual trading account and implement our trading plan accordingly.
The point of discussing all these is that, whether to trade part-time or as full-time is matter of personal preference and the time available at one’s disposal. But I can surely say that it’s totally possible to make good amount of money from stock markets even by dedicating just few minutes to it daily and my family is testimonial to it.
Whatever time you want to dedicate for trading entirely depends on the financial goals you have set for yourself.
The first thing to do is to – Clarify your trading and investment goals.
You could be trading to earn extra money to support your income to cater to your other expenses, or you could be trading to save money for investing in other assets of wealth creation like Real Estate, Gold etc. You could be trading to build corpus for your medical emergencies or retirement or for securing future of your children.
As you think about your own reasons for trading you’ll be able to put your financial goals in its proper context. Once you’re clear with your objectives, ask yourself whether you’re dedicated enough to achieve those goals – or are they just pipe dreams?
Only when you are clear about your financial goals and its purpose you would be able to dedicate and commit time and energy towards achieving your trading/investing objectives.
Nobody trades or invests to lose money, everyone wants to build their wealth. It is obvious that losing money will only make it harder for you to achieve your underlying goal. So your foremost goal must be preservation of capital.
By the same token, spending more than you earn will eat into capital or may be send you further into debt. So only by living below your means can you build capital in the first place, keep what you have – and then add to it.
And other way is to increase your income – may be by adding extra source of income or starting a side business. But then not everyone have that much money or expertise to start any business from scratch.
Starting business requires large amount of initial capital for infrastructure, staffing etc. As you explore whole lot of ideas and business models which can be started with minimum investment, you should also give a thought to “Stock Trading as Business”.
Unless you consider Stock Trading as a separate independent business you won’t be able to give professional approach to it when it comes to Capital preservation, trade management, time and goal setting.
To start Trading as a business you just need certain level of skill and dedication towards own financial goals. You should only act when you know what you are doing; which means keeping within the limits of what you know – and never straying into the unknown not even on the advice or tip from others.
The more detailed and specific you can be about your financial goals and targets, the better.
Surely, there is no shortcut to success but there certainly is shortcut to learning the art of trading.
Even Warren Buffet and George Soros had adopted successful proven investment & trading methods and plan from their mentors. Warren Buffet considers Benjamin Graham as his mentor who gave him everything that Buffet had been looking for in a complete package: an investment philosophy, a proven investment method and a complete, well-tested system. And “All” he had to do was learn how to apply it. Buffet took a huge leap along the learning curve “towards becoming a Skilled Investor”.
George Soros also chose a mentor – Karl Popper. Though Popper’s theories weren’t directly applicable to investing, it took Soros years to build a successful system based on the Popper’s Philosophical foundation.
Choose your Mentor or the right Learning Partner. The fastest way to master anything is to learn and study with a right teacher. If someone has already perfected the method of trading/investing that appeals to you, why reinvent the wheel? Save time, energy and most importantly save money by learning straight from them. Adopt the right methods, techniques, learn the proven system to make money from trading.
Why you should think of actively doing intraday trades for few minutes?
The rules of the game have changed. Yes, the rules for trading the stocks have changed. There have never been better time than now to trade in stocks. Technological advancement has made it possible for anyone to trade and invest from anywhere.
If you want to know how you can save whole lot of time on stock trading and make good amount of money with little efforts and minimum risk, ask us.
You don’t need to give whole lot of time for trading activities, nor for analyzing charts, nor for studying and understanding technical indicators. Even previous experience is not required for starting to trade in stocks. Just simple Time & Goal based trading techniques, that require you to dedicate anywhere from 5 mins to 30 mins daily during the trading hours.
People keep searching for a workable trading plan that can deliver consistent profits for them. Here’s a chart showing how you should find a Trading Strategy for yourself Vs How most people try to find a Strategy.
You can share your insights on Trading Strategies and methods adopted by you in the comment section below.