The stock market enthrals everyone. It is the land where fortunes are made and futures are shaped. It is also known for its notoriety in taking away the wealth of people and making them go bankrupt. Nonetheless, most venture out to the markets in the hope of making their pot of gold. At least once in a lifetime, people do try their hand in investing and trading. Success here depends upon their earnestness, determination, discipline, and professional approach towards the market.
The market offers many opportunities for those who can see them. Various instruments and a wide variety of financial products make the choice wide. Trading and investing are thus customized to suit one’s need.
Investing in the market is a matter of sowing the seeds today for reaping the fruits tomorrow. Investors pick potentially growth-oriented stocks, invest in them, and monitor them on a monthly or yearly basis.
Trading, however, requires one to watch the market regularly. Intraday traders do not leave their screens throughout the day and are glued to their computers. Swing and positional traders, however, have more flexibility and are far more relaxed in their approach. Whilst some traders trade full time to generate all their income from the market, others use the market to generate a second source of income. The latter has a primary occupation which may be a business or a job and only trade the markets to generate additional income.
A person doing a regular job or running his business does not have the time to be in front of his screen all the time. He, thus, prefers to be a swing trader. He takes a trade today to close it in a few days and watches his trade, as it progresses, daily. He analyses the market regularly in the morning or at night and identifies the stocks he would like to long or short. He marks his levels, places his orders, and puts his stop-loss order as soon as the market opens. Many traders even place their orders after market hours as they do not have the time to wait for the market to open. Many people have internet restrictions at their jobs and hence monitor the price of their stocks through their smartphones.
If you have a 9 to 5 job, becoming a professional trader in spare time can be challenging. Pursing trading whilst quitting a job also seems unrealistic. Thanks to bracket orders, you can do now intraday trading without looking at the market for the whole day and doing the job from 9 to 5 parallelly.
Trading is very simple for those who have the discipline and a professional approach. It can not only be used to create wealth but also to generate a regular income. Anyone can become a trader. A businessman, an employee, a student, a housewife or a professional have the potential of becoming good traders. The market is probably the only place where the money is not earned. It is made regularly!