Nowadays, everyone has an easy access to trading. Each man who has willingness and patience, is able to trade on the stock market, even with little money.
The present technologies give everyone the opportunity to make career in this sphere. For a start you need a few funds and free time.
At any time during the day, everywhere in the world, there is an open market. This means that even if you go to work from 9 to 18 o’clock, after that you would be able to trade. You just have to find the appropriate market for you and the good opportunities.
We are not saying that trading is an easy job to do – but it is accessible. Everyone could get into trading, but the results depend on his work.
Many people are faced with the dilemma whether to make trading their main occupation or this could be a source of an additional income.
People often think that you could be a full-time trader only if you work for an Investment Bank or you have a dozens of diplomas. Other popular fallacy is that if you want to trade for yourself you must have a high initial capital.
The site Investopedia.com comments that if you want to work with an Investment Bank you need diplomas and a lot of experience and it gives a couple of advices for another option- how an average citizen could trade for himself.
If you want to trade on the American market, you should know that you are required to maintain 25 000 dollars for a day trading in your account. If you don’t have such amount of money, you cannot make more than three transactions for a week. If you do more transactions, SEC considers this action as a day trading, and it will freeze your account for 90 days.
The European brokers offer a trading with CFD (a contract for a change), which allows the traders to evade the SEC rule. Through this instrument the movement of the rate is traded, without the primary assets. The American residents do not have the right to use CFD
Those who do not possess 25 000 dollars in their account, may focus on the Forex market. An account could be open with 100 dollars, and the market is available 24 hours a day, this gives the opportunity for people who work during the day to take the advantages of this market in their spare time.
Other thing that we should know is that a high leverage does not mean a higher risk, but every trader should be informed for the risks he takes and must have a trading plan to follow.
Another option is the proprietary trading firms. They are very popular in America, because of the training programs they offer and the lower rates. The firm ensures the trader with leverage and he trades, as the risk is divided between him and the firm. Some of these companies require the trader to work in their office, other traders work from their home, even they could be from another city. The advantages of this option are that you get a training, you work together with other traders, being able to exchange ideas and experience, as well as the low rates and commissions and access to a capital. The payment depends on the trader’s obtained results.
To make a conclusion – the first thing that you should do is to decide, do you really want to work this or no. The second step is to decide on which markets you are going to trade, depending on the amount of your personal capital and the things you want to achieve. Then you need a training or business plan , because trading now is your business. Search for the opportunities that the brokers offer and that are most suitable for you. After you answer these questions, go ahead!