Trading as a Business- Do You Have What It Takes?

Can you make a living in the stock market? Of course you can, but you have to treat it like a business. Before you can properly invest, you need to invest in yourself. You need to prepare yourself mentally, physically and financially. It takes commitment!

What Do You Need to Succeed?

1.Knowledge: If you want to trade for a living, you will have to spend time to learn the strategies that best suits your lifestyle and most comfortable to you. Learn them inside out. You will know what to do when the strategy works and when it goes against you.

2.Information: The Internet is your primary source of information. Without this crucial information, you're practically ‘blind’. It's definitely not healthy.

3.Low Brokerage Commission: It all adds up. Squeeze your broker, get the best rate. Brokerage commission is just like your business overheads. The greater you reduce your overheads, the better it is for your P&L statement. Start calling your broker now!

4.Money: If you're planning to treat trading as a business, your money represents your inventory. As the saying goes, “It takes money to make money.” How much money is necessary to start your business? It depends on what strategies you want to use. Do your sum well. Start saving now!

5.Time: You've got it. Now, you just have to prioritize it. If trading is your business, you'll have to do research on what and when to buy. That takes time. Can you afford it?

6.Emotion: You can't afford it. It has no place in the business of trading. If you properly follow your trading rules, a loss is just a cost of doing business. Nothing more. Keep emotion, along with your ego, in check. You will have both good and bad streaks, but if you use common sense, and know every aspect of your business, you can do just fine. Just be heartless!

7.Desire: You have to want it badly enough. It's amazing, if you want something badly enough, you' will be surprised how far desire will take you.

8.Survival: It comes down to survival. How do you survive when you are stranded in a thick forest? You have to stay positive and start sourcing for something which is good for your stomach. Similarly, if you want to continue to trade and stay in business, you must always maintain a positive mindset and concentrate on making good trades. You have to protect your inventory(money). How? Self-discipline. It's a rare commodity. You can't buy it at NTUC. Either you have it, or you don't. If you think you don’t have it, try getting yourself stranded at MacRitchie Reservoir for a start. Good Luck.