Trading is often viewed by many as a high barrier-to-entry profession. However, this is not true, especially in today’s economy. As long as you have patience and ambition, you can trade without any worries. And guess what? You can do so with minimum funds. If you already work in one of the mortgage staffing agencies or are recruited somewhere else, you can invest a percentage of your salary into stocks and start trading. You can even do so full-time if you want.
An Exciting Era in Stock Trading
Technology has changed a lot. Trading is not as complicated as it once was. Plus, the volume has increased on the exchanges. All this has led to low barrier-to-entry in trading careers. You will be surprised to know that there are some instances where no personal capital is needed to get started. There are also some cases where only a small amount of capital is required.
The global markets are very closely interlinked. This means that no matter where you are located in the world, there will always be open trading time somewhere across the globe. International markets can be accessed easily. All you have to do is identify the right opportunity and market. Anyone can trade whether you are a stay-at-home mom, a teenager, or a full-time employee.
While it’s true that anyone can try trading, it doesn’t mean that it is simple. Although the process is not complicated, it can still be quite difficult. You can enter the market easily, but your success will depend on the choices you make. Also, depending on the route you took to enter the market, you can make trading stocks either a part-time career, a full-time opportunity, or a way to get some additional income.
Is It Wise to Quit Your Job to Start Trading?
People usually think that full-time traders who have a high pedigree and advanced degree get to work for investment banks. This is true! However, you will have to have connections along with a prominent educational background if you want to get to work in a major investment bank. At the same time, you must give your decision some thought. You must be sure of yourself if trading stocks is what you want to do full-time.
Also, know that trading stocks may sound like a fun thing to do but remember that it comes with a risk. If you make a bad trade, you can potentially lose a lot. You must have heard of people losing their life savings all because they made a bad call. Therefore, you will have to be extra careful about your decision of becoming a full-time trader.
On the contrary, doing a regular job is a much safer option. You won’t be taking the risk of losing anything. In fact, you will be getting paid every month for your efforts. You can then use those funds to meet your expenses. You can even try part-time trading with a fixed percentage of the salary that you get to see how well you do. This will help you figure out if full-time stock trading is for you or not.
Markets That Require Less Capital
If you are interested in trading stocks full-time, you should ideally enter those markets that require less capital. Here are some of the options:
#1. Currency Markets
Currency or forex markets need less capital to enter and have a low entry barrier. You can easily open accounts for as little as $100. You can easily control a large amount of capital with minimum investment. Plus, these markets are active 24/7. This is the best type of market for those who can’t trade during the regular market hours.
#2. Contract for Difference Market
CFD or Contract for Difference Market has also seen some expansion. A CFD involves an electronic agreement between two parties. It doesn’t include the ownership of the underlying asset. This allows the parties to attain the gains for a nominal cost of owning the asset. This type of market offers high leverage. This means there are higher risks involved. Therefore, it is advised to educate yourself about the risks first before entering the market.
#3. Proprietary Trading Firms
Proprietary trading firms have generated quite a buzz recently. This happened because of the attractive training programs they offer along with the low-fee structures. If you don’t feel like trading yourself but are still knowledgeable and interested in trading, you can work in a proprietary trading firm where you get to make calls on a trading floor. You will not be an employee of the firm but a contractor. This means that you will be entitled to a percentage of the profit that is earned through trading. Please note that other than the profit share, you will not be getting any other benefit like wage or other perks.
Trading stocks is a lucrative option for many. However, doing so full-time may not be feasible for some. After all, there are risks involved. But if you know what you are doing and are an expert at timing the market, then you may consider doing this full-time. However, it is suggested to think twice regardless of what you decide. Also, if you think doing 9 to 5 is a better option, you can always check the staffing agency Pittsburg or in your area, or other avenues to help you find a suitable job that you would also enjoy doing.