Can Trading Really Be Your Second Income? (80% QUIT!)

Описание: In this video we talk about whether day trading can really be a source of income.

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When I talk about trading, I mean actively buying and selling positions to turn a profit (day trading).

This isn’t to be confused for investing which is a more buy and hold strategy, because everyone should definitely be doing that.

Since many people are enticed by trading to make money and think its easy, I’m actually going to start of with the or cons:

Trading Con #1 - It's not easy

Becoming a profitable trader is not easy - 80% of all day traders quit within 2 years and 87% of retail traders lost money trading forex in 2022.

In fact, even a bunch professional traders out there who do it full time probably can’t do it consistently.

This means that statistically, you're probably going to end up failing. This may sound negative but don’t be too disheartened by these numbers.

Many people actually start trading without being too serious about it which is probably why the failure rate is so high. Still though, trading to earn an income isn’t a walk in the park. it takes a lot of discipline, focus, and commitment to actually make it.

Trading Con #2 - Time consuming

Trading will take up a good amount of your time. Just like anything else in the world, you have to put in the effort to actually become good at it.

The trick here is that unlike many other jobs, you can actually get started without getting good.,, and that’s how you lose money.

For example, you can’t just get a side job doing digital marketing without experience, knowledge, or a portfolio. You can, however, start trading whenever you want but you’re almost guaranteed to lose over the long term.

Firstly, you’re gonna have to set aside time to actually learn your trading strategy in and out. This will depend on each individual’s preferred trading style but they all require education especially if you’re completely new to this world.

Even after this, you’ve got to put aside the time to continue learning, scan for stocks, and manage your trades.

Its definitely an active job and anyone who tells you you can do it passively is lying to your face. So to put in the required hours to be successful, be ready to give up a portion of your time after work and on the weekends continuously for as long as you want to be a trader.

Trading Con #3 - You need money to start

The next thing that you have to consider is that you need money to even start. You don’t need a lot of it and I definitely don’t recommend spending too much on courses, but you will need some.

If you’re an amazing trader and can make 100% returns a year but your portfolio size is only $1,000, then its hardly going to change your life. To actually get significant returns, you’d probably need to start with at least $5,000 or preferably $10,000.

However, I recommend that you start off a lot smaller because there will be another cost to trading which is your tuition fee. No, it isn’t a class that you’re going to pay someone the low price of $4,999. You pay this fee to the market.

I’d say 99.99% of traders will lose money at the start of their journeys. I’ve listened to many podcasts from highly successful traders and they all go through the same thing initially.

No matter how much prep work or studying you do, you’re almost destined to lose some when you start off simply because of the emotional aspect of trading.

So you don’t just need a sizeable portfolio to start generating returns, you also need to have enough to fund your first account knowing the fact that you might blow it up and have to start over.

Con #4 - Unstable returns

Even if you do pass that initial stage of not making money, you have to remember that trading income isn’t consistent or stable. Some months might be good, while others will be bad.

Its not something where you can buy a house and pay off the monthly instalments with your secondary income because its nowhere near certain.

Depending on your trading style, you might not even trade during bear markets which is essentially the past 1 year.

Here are some of the pros to trading as your secondary income:

Pro #1 - You can...

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⌚ Timecodes:

00:00 - Can Trading Really Be Your Second Income?
1:13 - Trading Con #1
2:08 - Trading Con #2
4:34 - Trading Con #3
6:19 - Trading Con #4
7:17 - Trading Pro #1
7:47 - Trading Pro #2
8:43 - Trading Pro #3
9:55 - Trading Pro #4
11:11 - Is trading for you?

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