When it comes to work, staying in place for a long time is a fairly unpopular choice. According to the US Bureau of Labor Statistics, in the United States the average worker will change jobs more than twelve times throughout their career. At any given moment, as reported by Zippia, up to 65% of America’s workforce is looking for different full-time employment. At the same time, many people also decide to go into business for themselves, strengthening the ranks of the self-employed, which Pew Research found numbers close to sixteen million people.
Among the many options available to people who venture out on their own, day trading stands out as one that carries with it more risks and a chance for a bigger reward. Even though statistics show that it’s more likely to fail at it than succeed, there are plenty of people who manage to live off their day trading. John (Ultra Calls), a professional day trader and the man behind Sapphire Trading, is one of the people who made it. Here, he shares some advice for people who want to try it, too.
Best Not Quit the Day Job Right Away
“There’s a lot of hype around day trading now,” Ultra Calls says. “People might be attracted to the prospect of working from home and making lots of money, which are great aspirations to have. The problem is when people become overhyped, quit their jobs, and pour their life savings into their trading account.”
The reality of day trading is that people often tend to get burned out quickly, leaving the profession after a couple of losses that were too big for them to handle. One of the ways to make sure this doesn’t happen is to start day trading the right way, using safe learning methods, and having a good support system that includes a regular job.
Find the Right Strategy
One of the easiest ways to lose money quickly with day trading is to go into it without a strategy. Having the right strategy is the difference between doing something comfortable with a predictable level of risk, and crashing onto the market and trying to grip onto something that will work.
“All it takes is one really bad loss to set people’s trading career back weeks, even months,” Ultra Calls explains. “For many people, that kind of experience puts a definitive stop to their trading career, as they either don’t believe they can recover or, at worst, don’t have the money to do it.” Finding a strategy that matches the personality of the trader is a key step in ensuring the longevity of a trading career.
Have the Right Attitude
Finally, having a clear picture of what day trading is, its potential benefits, and the pitfalls and risks connected to it is necessary for a realistic picture of the field. It would be next to impossible to make a good plan with a head full of unreasonable ideas.
“People should understand that trading is not a game and it’s not easy,” says Ultra Calls. “There’s no such thing as a get-rich-quick scheme that works, and if there were, day trading wouldn’t be it. The only way to do this long-term is to understand the risks and rewards, and to make moves with the long term in mind.”
