Can You Make a Living Trading Alone?

Is it possible to make a living from trading? Are daily earnings, at least potentially, able to sustain a medium-high standard of living on their own? All aspiring traders ask themselves these questions. After all, the famous financial freedom, which is often understood as freedom from classic work, is appealing to everyone. Unfortunately, answering is very difficult, and moreover, there is no one-size-fits-all answer. Also because in the background, there is a small but significant truth that, however obvious, is worth remembering: earnings depend on the skill of the trader. Yet, living solely on trading is a great goal to achieve. No superiors, no schedules to respect, no office to reach every morning. An idea that attracts, also because common sense tends to attribute to it only three "substantial" requirements: the possession of a computer, a connection, and capital, small or large, to start with. It is precisely the belief that, after all, everything is very simple that is responsible for the many failures that dot most trading stories. The truth is that trading is an incredibly complicated and extremely competitive world, so it is very easy to succumb. One of the first pieces of advice that is good to give to those who aspire to become traders, therefore, is to take it slow, to walk with their feet firmly on the ground. In plain words, don't invest a lot of money, at least not at the beginning. Certainly, don't invest all your money in trading. The second piece of advice is to become aware of six great truths about online trading. This is the first step in acquiring financial freedom through trading, and therefore even hoping to make a living from trading. In the first year of trading, 90% of trades are losing. You may be the white fly, the classic exception that proves the rule, but don't count on it too much. Risk is ineliminable. Even the most experienced traders have to deal with risk. It is the soul of speculative investment, an uninvited guest that cannot be expelled now or ever. There is no 100% winning system. First, because if it existed, everyone would use it. Secondly, because the market changes and consequently the conditions under which a certain system works. You are destined to lose. Even if you become a great expert, the risk that you could lose everything is high, and it is practically certain that at least a portion of your trades will end up losing anyway. The starting capital is decisive. To make money, you need money. This means that you cannot hope to become rich starting with a capital of a few hundred euros. It takes several thousand. Becoming very rich is almost impossible. This, of course, only applies to dependent traders, i.e. those who only manage their own money. In the best case, you could become wealthy (which is not bad at all).

The questions to ask yourself in order to hope to make a living from trading

Once you have acquired the necessary awareness, it is good to do a check on yourself. Not everyone, in fact, is suited to trading. If some questions are answered negatively, it is better not to start at all: you would only lose money. Here are the questions to ask yourself. Am I competitive? Trading is competition, so if you lack the right spirit, abandon your intentions. Do I know how to handle negative events? The answer should be: I am able to accept negative events and learn from them. As we said in the previous paragraph, trading is often defeat, and it is especially so in the first year of activity. If you are not able to make the best of negative events, give up. Do I have enough time? Trading is not a game, and above all it is not a gamble. A certain dedication is necessary, which means that time is needed. It takes at least a couple of hours a day, training path excluded, to lay solid foundations for success. Do I know how to draw up a trading plan? Discipline is important, also because otherwise the activity would be too discretionary, and consequently emotionally oriented. Specifically, you need to obey the trading plan, so you need to know how to draw them up. Do I have a plan B? Actually, trading should never be plan A. In any case, the substance does not change. Before taking the path of trading, it is good to verify that the process is not irreversible, i.e. the possibility of returning to one's job or in any case not ending up on the street if things go wrong. Do I know how to manage stress? Trading is synonymous with stress. All traders experience it, even the most experienced ones. Like risk, it is a presence that cannot be eliminated. So you might as well manage it. There are people who are endowed with a certain coldness and emotional people, check that you fall into the first category. Are my goals realistic? If you set the bar too high, the chances of failure increase, also because you would feel compelled to take too high risks. The advice, therefore, is to start quietly.