Trading Stocks Online: A Guide for Beginners
How can online trading become a career that you can depend upon? Calculative risks, smart investment decisions and a little bit of luck will help you start your own empire.
Trading offers great earning potential. A successful online trading can easily replace your day job. According to Bureau of Labor Statistics, the employment in the field of trading has seen a significant increase with the high salaries luring in plenty. Though the figure shows the overall data, it shows the potential of the industry.
Are you looking for online trading as a full-time career option and is still unsure if it can replace your day job? The concept of online trading is not new; it has been there for more than a decade. Unlike what some of us might say, it is not that different from floor trading.
So what’s the difference? On online trading, instead of being physically present, each transaction is carried out online. Here we are presenting an idea on how you can trade online and have good earnings.
How can you set your own income goals? If you are looking to attract more returns, you need to be strategic in your approach. Here is why you should have set income goals in your trading to progress.
Online Trading as career
Like most other careers, you should not be looking for shortcuts. A career in online trading means that you need to be ready to face challenges. You need to look at how you will be able to scale up your investments. Here are some of the steps that can help you to turn online trading into a career.
Trading is one of those jobs that require in-depth analysis of the market behavior. Return on investment is also unpredictable. In order to make trading as a successful career, you need to have proper income goals that take you forward. However, many beginners start with making wrong type of goals. It is necessary to have scalable goals, which includes making money as well as gaining the traits of professional traders.
Making income goals
Many traders begin by making goals about numbers such as 1 % per day on $30,000 capital or 30 % per year on some investment. Though it looks simple, achieving these goals would require refine market approach and knowledge. By getting into market and expecting to make a specific amount of money, even the simple goal becomes impossible to reach. These types of goals require, trader to know about capabilities and limitation of their plan.
When setting goals, you can set precise goals with numbers but focus more on process. Even if the process does not achieve the income goal but if the process is effective, it will yield good return. Either create new strategy or improve on it to yield better results.
Accompanying income goals with performance goals
As mentioned above, process is also important with simple outcome goals. Hence, setting a performance goal will ensure that you follow the process and thus, achieve income goals. Always ask what needs to be done to achieve income goals? Set these things as your performance goals.
To achieve income goals through the process, use these three steps.
1. Have a good and thorough business plan
How good is your business plan? It is important to take into account minute aspects of how you plan to trade to ensure that you do not deviate. Be thorough in the business plan. Business schools to teach that in order to make business you need to have business plan. Every time you trade, follow a well thought out and calculated plan. Some of the essentials in the Plan include trade entry, exit, and how capital will be managed.
2. Learn to stay away
If your goals are always inclined to achieve good returns on your investments, you may have to say no sometimes. The market is volatile and not always does it present the most favorable opportunities. Learn to find these unfavorable trading opportunities and avoid them.
3. Keep it simple
Avoid fancy analysis and trading strategies. Remember, the more complex the strategy, higher the chances of you destroying your investments. Stick to basics; if you like currency, trade Forex. Keep your focus limited to one market and few simple strategies.
Make income goals that show you a safe path and calculate risks before each investments. During your early career, do not go in for large investments with high-risk ratio. Instead, look for smaller investments with higher returns. This will help you improve performance. Keep reworking your strategies in order to achieve your desired goal.