Trading For A Living Lens

I know the questoin. Is it possible to trade for a living? People trade stocks all the time, and the hope to is usually to create additional money, but not to replace their nine to five gig.

But a few individuals out there think about taking trading one step further. What if you could trade all the time, and make enough money to get rid of your day job? This is a possibility, although let's first think about the complications this would bring and the road to getting there.

First, realize that if you devote what would be your work day, then you will not make the money from the w-2 wages you have become used to getting. You will need to trade up to the amount of money you would have made with a job, and also to pay a slightly higher tax rate. Why? Because you will have to pay your own self-employment income as well. Employers pick-up half of this cost but since you will be your own boss, now you have to pay it.

Second, unlike a day job nothing here is guaranteed. With a normal nine to five set-up you go in, perform to the best of your ability then go home. Every other week you get a check for that. It's very consistent and there is little risk. The situation couldn't be further from that if you decide to day trade for a living. You will have instances where you make a substantial amount of money one week, but lose money the next. Trading is definitely not consistent, even the best traders will tell you this. And since you will not be a seasoned trader, there is a decent chance you will lose more money than a pro.

Take into consideration the real cost of trying to speculate for a living. The truth is it's quite difficult and can be very stressful. More than anything, realize that each day, the entire life of a trader, is unpredictable.