Anyone with the funds to open a brokerage account can try their luck in the markets.
As in gambling, there is plenty of fast action with ample opportunity for quick profits and losses.
But without trading discipline or experience in trading the markets, trading oftentimes becomes a painful and brief ordeal.
Here's a few tips on how to survive as stock trader because in today's financial markets survival means success.
Being a successful stock trader means committing more time and being more dedicated than being an investor.
That's because trading is a profession that employees thousands of market wizard s and competition among them is fierce.
But there are successful amateur participants in the stock market, and many of them owe their successes to an ability to formulate trading rules and adhere to them, and to being prepared for losses even when those rules are followed carefully.
Many traders lose their trading discipline when they suffer a loss instead of making a profit.
They become anxious, unnerved and let emotions play a part; their decisions are no longer rational and their losses mount as the traders strive to recoup.
As one of the notable traders of the last century said, traders, especially amateurs, should keep the emotions of fear, hope and greed at bay.
Timing itself may be the primarily determinate in whether a trade results in a profit or a loss, particularly in the daytrading arena.
Because such trades tend to be an attempt at fast money, a great deal of patience is required when the trade turns to the negative.
Although no trade wants a specific trade to become a long term investment, it is vital to avoid over trading.
The best way to avoid costly errors is to stick to your own devised set of trading rules.
The good news is that timing a stock, like timing the markets, is a skill that comes with experience.
Paying attention to trading volume and price movements will, over time, teach one to read the signals, spot the trend, and time the trade.
With patience and timing, the cost of tuition for a new trader can grow to a substantial sum.
For a successful stock trader, one of the most important concerns is funding because it all depends on how much you invest.
How much you invest will decide the outcome of the trading venture and one thing which needs to be taken care of is that capital should be enough to absorb trading losses.
Certain essentials like bills and mortgage payments should never be dependent on outcome of trade and one should always have sufficient capital for these essentials.
The person who is trading for living, will mean huge investment as startup costs.