1/24/2024

Quitting for trading: yes or no?

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Trading used to be considered a profession available only to a select few. However, in the modern world this is no longer the case. Now, with the advancement of technology and the emergence of new opportunities, anyone with ambition and patience can make a living from trading, even if they do not have a lot of capital.

However, is it worth quitting your regular job to make money on the stock market? In fact, the issue is debatable. It all depends on your tolerance and exposure to risk.

 

Modern trading

The development of technology and the growth of stock trading have made it much easier to become a trader. In some cases, no personal capital is required to start a career, while in others a small amount is enough to confirm the seriousness of your intentions.

Global markets operate 24 hours a day, so you can trade at any time of the day or night. This means that even people who work or have children can find the right time to trade. The main thing is to choose a suitable niche for yourself and find opportunities to earn money.

However, trading is not a cakewalk. Although there are many opportunities in the market today, success depends on your skills and knowledge. Depending on how you want to pursue trading, it can be a full-time career, a side hustle, or just a way to make extra money.

 

Trading from home

The number one option for those who want to quit their full-time job is trading from home. This is the most flexible option and can be adapted to your daily routine. However, day trading stocks from home is also one of the most capital intensive. To qualify as a day trader, you must have at least $25,000 in your account. If your balance falls below this amount, you will not be able to trade until you deposit additional funds.

 

Foreign exchange markets

Therefore, potential traders should be aware of other options, including markets that require less capital and have lower barriers to entry. This alternative is offered by currency markets, in particular Forex. Accounts can be opened for as little as $100, and with leverage, you can control a large amount of capital with that small amount of money. This market is open 24 hours a day during the week and thus provides an alternative for those who are unable to trade during regular market hours.

However, contrary to stereotypes, Forex trading requires skills and the ability to think through working strategies that will contribute to deposit growth rather than losses.

 

Working with a broker

If you work through a broker – and especially if you are just starting your journey in trading – it is advisable to think several times about the decision whether to leave your full-time job. There are two main reasons for this.

First, remember that an honest broker always asks about your income status when verifying your account. If you do not have a permanent job or income, you may be denied brokerage services. The logic is simple: the weaker your financial well-being, the more vulnerable you are to risks. Accordingly, the broker will not want to take responsibility for your unsuccessful transactions and end up in the red.

Secondly, brokerage involves commissions that you must be able to pay. If you are new to stock trading, you will probably make mistakes and suffer some percentage of losses. This is why it is important to use the amount in trading that you are willing to lose.

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