Quit Your Job To Trade Stocks !!?
The first and most common option the average person explores is trading from home. But day trading – buying and selling investments in the same day – takes lots of capital. The minimum equity requirement for a pattern day trader is $25,000, which must always be maintained.
Other markets that require less capital include the foreign exchange market. Accounts can be opened with $100, and with leverage an investor can control large amounts of capital. But using leverage compounds a trader’s risk, and education in any trading activity becomes even more important when leverage is involved.
The contract for difference market also requires little capital. A CFD is an agreement between two parties that involves no ownership of an underlying asset. Instead, the parties settle their difference in cash. Profits and losses are realized through the speculation of an underlying stock.
Someone who would prefer to trade from a trading floor instead of their home should look at proprietary trading firms, which trade for direct gain instead of commissions. They give traders firm capital and assume part of the responsibility, relieving some of the pressure on traders. These firms also offer training and guidance.
In the end, quitting your job to trade stocks requires a plan. If you’re going out on your own, decide what markets you’ll target and create a comprehensive strategy. Then explore online brokers and find a mentor.