Are you toying with the idea of online trading? Have you contemplated on making trading a source of additional income? Or even as a full-time profession?
But how much can you truly make from trading? Is the trading life as flashy and glamorous as they show in movies like Wolf of Wall Street?
In this article, we will attempt to answer these queries for those interested in giving trading a shot. Let us get a brief understanding of online trading first.
Online trading is buying and selling financial instruments through an online trading platform owned by a broker. They act as a medium for you to access the online marketplace and trade through their platform.
What kind of assets can you trade through these platforms? You will get a myriad of trading instruments such as currency pairs, shares, commodities, indices, cryptocurrencies, and more.
To trade, you need to open an account with the broker. And then you deposit money into the account to start trading. After that, you can start placing trades. You can withdraw your winnings whenever you desire.
Now that you know how it all works, can you make off it? The primary answer depends on how you perceive trading in general.
If you treat trading as a game, randomly placing trades as you please without any concrete strategy, you will lose money.
On the other hand, if you learn the basics of trading from scratch, understand market movements, master fundamental and technical analysis, and finally practice it all on a demo account before trying real trading, you are bound to be successful.
You see, trading is all about taking advantage of the market movements. Being able to recognize an uptrend or a downtrend before everyone else makes you stand out from the rest.
This skill of market analysis doesn’t just come out of thin air. As mentioned above, the minimum a beginner must do is to grasp the fundamental concepts of trading.
A great place for newbies to learn trading is Binoption. There, you will find detailed guides on trading concepts, strategies, reviews, blogs on the latest trading events, and much more.
Another question that is often asked is, “how much money can you make from trading?” The truth is, there is no definite answer to this question. It entirely depends on the amount you invest and your trading success.
That being said, you can definitely make a fortune from trading if you do things right. Just look at the net worth of some of the richest traders. Just take a look at traders like George Soros, James Simons, and Ray Dalio.
They are multi-billionaires who have established themselves as the best of the best. None of these giants have come from a rich background or have had it easy.
Through years of persistent hard work and determination, they have made it to the top. Therefore, when you give trading a shot and don’t see immediate success, don’t start questioning the viability of trading. Realize that making trading a profitable revenue source will take both time and patience.
A common misconception associated with trading is that it is often compared to gambling. Trading can only be gambling if you treat it like one.
There is an element of luck involved in winning trades, but not so much that you need to depend on it. You should rather focus on embracing yourself to jump into the world of trading.
Your trading experience depends quite a lot on the trading broker that you choose. It is through them that you will access that trading markets and place trades.
Choosing an online broker is a careful process and care must be taken that you don’t opt for a fraud broker. Make sure the broker you choose is regulated and licensed.
A great recommendation for an online broker would be IQ Option. They are regulated by CySEC, offer a demo account, easy deposit, and withdrawal process, and offer over 300 assets. The best part is, you only need to deposit $10 to get started with them.
Another crucial element of trading includes proper risk management. By reducing your risks, you are effectively increasing the probability of winning.
So to answer the question for once and all, yes, you can make trading profitable and as a reliable source of income. It depends on your mindset and efforts more than anything else.