Can You Make A Living Trading From Home?
The unprecedented COVID-19 pandemic practically confined people worldwide in their homes. But technology helped many people navigate the ‘new norm,’ or at least cope with it. In the financial world, investors never missed a beat, right from the safety and convenience of their homes.
During the coronavirus pandemic, there was a spike in online trading as many people sought ways to make money from home. It is as simple as ever to get started with online trading, with many user-friendly platforms available that can provide quick access to the global financial markets within just a few minutes and with minimal starting capital requirements.
It is easy to access online trading, but it is not easy to consistently make profits trading online. It is estimated that about 30% of new traders are profitable. Usually, it’s correlated with their eagerness and big risk appetite. Yes, you can make a living day trading from home, but online trading remains risky, and traders must know the risks and rewards and how to navigate them effectively.
How To Start Day Trading From Home?
Good Environment
You may be day trading from home, but it does not necessarily mean you will be doing it in your pyjamas while lounging in bed. Day trading is a very daunting task that requires maximum focus, attention, and discipline. The financial markets can be very unforgiving, and it is crucial to ensure that you have a good environment (devoid of distractions) that will provide you with the calm and focus required to make good trading decisions. It should also be a resourceful area, where you can easily access practical resources such as stable power and internet connection.
Education
Only through Trading education will you acquire the knowledge and skills required to achieve successful day trading from home. It is essential to understand the different markets, their different characteristics and sources of risk, and the relevant strategies. Also, the financial markets are very dynamic, and thus education never ends. It would help if you kept tabs on economic news and events and market insights and analysis.
Trading Plan
Day trading is a serious business, so you must have a plan. A will detail what will guide your decision-making in your day trading journey. It will include your trading strategy (technical or fundamental), risk management plan, trading psychology, and overall investing objectives. Sticking to your trading plan is vital to ensure consistency in your trading activities.
Practice Trading
Open pratice account to test your acquired knowledge and skills. Practice trading will allow you to understand the practical aspects of trading and try out different risk-free strategies. Even for a practice account, choosing a reputable, reliable, and trustworthy broker from the off is important. This will allow you to experience the platform and its many features and tools so that you will already know what to expect when you step into the live trading arena.
Start Trading Live
After successful practice trading, you can open a real account and start trading with real money for real profits. Successful practice trading means that you have a solid, successful trading plan and are fully aware of the risk/reward proposition of the underlying market you are trading.