Easy Money – NOT!
I recently came across this question in a trading forum: “I just lost my job. I’m thinking of a career change. Can I make a living trading?” Here is how I’d answer the question.Trading For Regular Income
An investor designs a trading plan for maximum returns over the long term, but if you trade for a living other factors are more important. This may seem strange to the novice trader, but if you have traded for a long time you will come to recognize that certain types of plan, while very profitable in the long term, are impractical as a means of supporting a person with bills to pay. In general, if you want a steady income, you need to have a plan that trades regularly with trades of short duration.Common Day Trading Strategies
If you are going to try your hand at day trading, it pays to find out as much as you can about common day trading strategies. If a strategy is used a lot it generally means it can work really well. So researching this part of day trading and how it works certainly bodes well for the future.
If you have heard of this method of day trading and you are interested to find out more, let’s start by revealing that it isn’t the easiest method of trading you could try. A stock option allows you to buy a certain stock as defined by the option itself. This is time limited and fixed at a certain price as well.How Do I Take Advantage of Volatile Financial Markets?
One way to make money during times of volatility is to trade CFDs. A CFD, or Contract For Difference is an agreement to exchange the difference in value of a particular financial instrument say a stock index, between the time at which the contract opens and the time at which it closes.