How to Start Trading: Trading as a Business
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The idea of trading for a living – or having your own trading business – is appealing to many people: You get to be your own boss, set your own schedule and work from home while enjoying virtually unlimited income potential. In addition to these factors, anyone with a computer, Internet connection and a small trading account can give it a try. Unlike many other jobs, no degrees, special training or experience is required.
Steep Learning Curve
Because trading is so easy to get into, new traders may not realize there's a very steep learning curveinvolved: Being successful is difficult and takes a lot of time and effort. Here are some quick facts about trading:
- About 90% of day traders fail within the first year.
- There is no way to completely eliminate risk in trading.
- There is no trading system that wins 100% of the time.
- You will always have losing trades, even if you are a rock star trader.
- You need money to make money – it will take a long time to get rich with a small trading account.
- Successful independent traders can earn a comfortable income, but most do not become millionaires.
The ease with which you can start trading (just open a trading account and hit the “buy” button) in no way implies that becoming a successful and profitable trader is easy. Many of the 90% of traders who fail within the first year do so because they start trading without having developed any type of logical business or trading plan.
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