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Day Trading For A Living in Ukraine
Advancements in technology have ensured anyone with a working internet connection can start day trading for a living. But whilst it might be possible, how easy is it and how on earth do you go about doing it? This page will look at the benefits of day trading for a living, what and where people are trading, plus offer you some invaluable tips.
Is Day Trading For A Living Possible?
The first thing to note is yes, making a living on day trading is a perfectly viable career, but it’s not necessarily easier or less work than a regular daytime job.
The benefits are rather that you are your own boss, and can plan your work hours any way you want. Trading on a laptop also means you can do it anywhere, anytime.
Beware – there are many out there who claim to make a fortune on day trading, but usually these people are trying to sell you something. Don’t believe the hype or that there is such a thing as “easy money”.
There are ways to make it easier though – for example, you don’t need to make as much if you live in (or move to) a low-cost, low-tax country. Cutting down on living costs can also make a big difference, as “making a living” on something in essence means that income covers expenses.
Top Brokers in Ukraine
Benefits vs Drawbacks
Despite the difficulty, there are some obvious benefits to day trading for a living. To name just a few:
- No boss – You’re your own boss. No more pandering to the needs of demanding and unreasonable bosses. You can work precisely the way you want.
- Hours – You set your own working hours. In today’s world there is always a market open. So, you can choose when you want to work and for how long, fitting it around other commitments. If you want a four week holiday, there’s no HR department to navigate first.
- Overheads – No more expensive train ticket to get to work. No more petrol and parking costs. No more pricey suits. You simply need a computer, an internet connection and some capital to get going.
- Comfort – Whilst everyone else is ironing their shirt for the day ahead, you can slip into some comfy clothes and begin your 15-foot commute to your desk, with a fresh cup of coffee. No more stuffy office or distracting colleagues to deal with. You work from the comfort of your own home.
Despite the obvious allures, comments about day trading for a living also highlight some downsides. The most prevalent of which are:
- Solitary lifestyle – Your colleagues may have driven you up the wall at times, but sometimes it’s reassuring to have people around. Day trading for a living can get lonely. If you don’t like being on your own, think twice.
- Inconsistent salary – Your salary will fluctuate hugely. You might make $3,000 one day and then lose $2,500 the next. You probably won’t have a stable salary to rely on. On top of that, if you take the day off work you, you won’t get paid a penny.
- Career progression – The only thing that can improve is your takings. You may also find it challenging to get back into the business world. Some day trading for a living forums have suggested you’ll be less employable by the end.
- The battle against bots – Algorithms, automated systems, and bots are all taking over the market. They are now responsible for a massive 60% of all market volume. Whilst, there will always be a place for humans in the market, you’ll need to find new ways to adapt and evolve if you want to maintain an edge.
What Are People Day Trading?
One of the most important decisions you’ll make is what to start day trading for a living. What are the popular securities and markets then, amongst those who day trade for a living?
Whether you’re day trading penny stocks for a living or currencies, the volatility and volume in your chosen market will seriously impact your potential profits. The cryptocurrency market, for example, is highly volatile, enabling some to make a very good living.
Whereas, day trading stocks for a living may be more challenging. It is already a saturated market. In addition, a relatively high amount of initial capital is required and losses could be more financially devastating.
Again, day trading commodities or futures for a living will present its own challenges. All of which points to the need for effective
Whether you make it day trading as a living will also depend on where you live, and the market you opt for. Day trading for a living in India, Indonesia or South Africa, not only offers volatile markets, but you also have a very low cost of living, making a living a more feasible.
Day trading for a living in the UK, US, Canada, or Singapore still offers plenty of opportunities, but you have an abundance of competition to contend with, plus high costs of living. You won’t be short of volatility or volume, but you need to sit down and calculate how much you will need to make on average each week or month, to actually live.
How To Make A Living
Making a living day trading is no easy feat. You’ll have a number of potentially expensive obstacles to overcome. Below the top tips have been collated, to help keep you firmly in the black.
The question on many aspiring traders lips is, how to start day trading for a living? The answer is you need just a few fundamentals. Get those fundamentals right and you’ll be in the strongest position to make a generous salary.
- Hardware – You need at least a mid-range computer and internet connection. Any hardware or internet crashes could cost you dearly. Many suggest having two monitors up and running, just in case of emergencies.
- Broker – Make sure you pick a broker that suits your needs. They need to offer competitive prices, reliable customer support, and an easy to navigate platform.
- Strategy – You need a strategy that suits your trading style. It needs to rely on charts, patterns, and technical indicators. It needs to enable you to make frequent profits on high volume, low-value trades.
Location is an important topic. Will you have an office at home or try and trade in a variety of locations on a laptop? You may have seen the images of a lone trader sat behind 6 or even 9 monitors keeping track of all sorts of data – but is it necessary? One alternative to trying to dedicate some space at home to trading, is to use rented desk space.
There is also a service that takes things a step further. ETrading HQ offer leased desk and office space, but also day trading data and collaboration. Like minded traders can exchange ideas and strategies face to face. The concept is booming in both London and New York and may make day trading for a living much more viable for those concerned about markets data, solitude and office space.
One of the first questions out of aspiring traders lips, is ‘how much capital do you need?’ The one requirement of day trading from home for a living is capital. Roll back the dice a few years and you needed a minimum of $25,000 to start day trading in the US. Not only that, but you always had to maintain at least that amount in your account.
These tough regulations meant the for the majority of people, trading for a living was simply not financially feasible. However, globalisation of the financial industry has allowed numerous platforms to develop outside of US regulation. Today then you can start with as little as a $1,000 in your account.
How much capital you will need will depend on what it is you want to start trading.
If you want the best chances of succeeding at day trading for a living you need to utilise a wide range of resources. Fortunately, you can now find free, educational tools with just a few clicks of the mouse. Some of the most effective resources worth considering are:
- Books – see our list of good reads, including easily accessible Google books.
- Ebooks – e.g. ‘new trading for a living ebook’, by Alexander Elder (hassle-free download)
- Tutorial videos
- Forums – ideal for those looking to start making a living day trading stocks, futures, forex, and cryptocurrencies.
- Study guides
- Podcasts & MP3s
You’ll find advice from experienced traders on forums, blogs, and chatrooms. You’ll benefit from detailed strategy examples from books, PDFs and tutorial videos. A lot of the day trading for a living ebooks, epubs, and PDFs are available for free downloads too and can be accessed via Kindle.
If you’re looking for specific guidance on how to make a living day trading forex, consider the forex page. Alternatively, see the stocks page if you’re interested in trading stocks from home for a living.
If you’re looking at how to do day trading for a living, one of the essential components is how you manage risk. As Larry Hite rightly asserted, “Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.”
You need a system that ensures you have enough to make moves, whilst retaining enough capital that you don’t have to go back to the day job.
A good system revolves around stop-losses and take-profits. These allow you to plan ahead and prevent heightened emotions taking control of decisions.
- Stop-loss – This is simply the price at which you will sell a stock and take the loss. It will eradicate you holding on in hope that ‘it will come back.
- Take-profit – This is the point at which you will sell a stock and take the profit. This will help you retain that profit, by enabling you to sell before a period of consolidation kicks in.
If you’re trading for a living, consistent and stable profits are the goal, which will require a consistently disciplined mind. As Victor Sperandeo highlighted, “The key to success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.”
It may sound straightforward now, but when you’ve got $2,500 on the line and you’ve been staring intently and tensely at the screen for the last six hours, well keeping fear at bay isn’t so easy. An effective way to limit your emotional liability is to employ as much technical help as possible.
Keeping your emotions in check will take practice, a lot of mistakes and then even more mistakes. However, a neat trick that helps many traders is to focus on the trade, not the money. Take it from experienced trader Alexander Elder, “The goal of a successful trader is to make the best trades. Money is secondary.”
The number of people day trading for a living since 2020 has surged. Is it realistic though? The answer is, it depends entirely on your ambition and commitment. It won’t be an easy ride. But, if it suits your working style, you choose the right market and you utilise the tips mentioned, then you could be one of the few that triumph.
The Truth About Trading For A Living (Tips for people getting started)
First, I am not a master trading guru with a Ferrari and a platinum Rolex to flash in front of you. Frankly, there are much better traders out there. I’m just a regular guy in his early thirties with a bit of success trading stocks, options, and futures.
I’m also not selling anything so there is no reason for me to lie or embellish results as a trick to sucker you into my “get rick quick” membership web site.
Here’s a little background:
I got beat up (financially and emotionally) running my own businesses for 10+ years, but did get to the point where I was able to sell one of them.
Despite these struggles I still run a business and continue to invest time and money into various ventures.
That being said, the sale of my most successful company resulted in a respectable amount of financial breathing room so I decided to tackle trading as my primary source of income.
I dedicated $50K to my trading account and viewed it as seed capital for getting started. In hindsight I should have started with less money until I developed certain habits and decision making capabilities.
Having an entrepreneurial or business ownership background gives you a huge advantage.
Starting and running a business teaches you a lot about yourself and other people. It brings your strengths and weakness to the forefront and forces you to deal with them.
You learn about losing money, gaining money, and how to be 100% accountable for the decisions you make. So, I did come the trading table with healthy experience in these areas.
If you don’t have this type of background that absolutely does not mean you won’t be a successful trader. It just means if you haven’t already learned how to manage your time, money, and emotions under substantial pressure you are likely going to have extra self-improvement/psychological work to do.
The truth is you can absolutely make a living trading stocks, options, and futures. It does take a lot of time and it is not easy.
For me it took about 2 years before I was able to be consistently profitable. I never blew up my account, but did take some large losses that messed with my head a bit.
My prior experiences in business helped with accepting losses and getting right back to work without any debilitating stress or anxiety.
One thing I’ve noticed over the years is that many people (including myself at times) are not completely honest about their weaknesses and end up bullshitting themselves through life.
In many occupations/jobs you can get away with this and still get by. Not so with trading for a living.
Remember, the buck always stops with you and outcomes are directly connected to your decisions. It is imperative that you understand this and improve upon weaknesses.
100% personal accountability is required.
Without this, you might as well not even try. There are much easier ways to get by in life. If you accept this and truly commit to building a profitable trading business, then you have a shot.
It is vital that you don’t blow up your mental/emotional accounts. This is arguably more important than blowing up your financial account.
Financial setbacks are very temporary as long as you still have your wit.
Something that is hard for a lot of people:
You have to get your thinking clean and free from everything you think you know about markets.
Nobody knows what the hell is going to happen later today, tomorrow, next week…whatever. And, at least for me, approaching trading with this mentality has helped greatly.
There is so much garbage on television and the internet about trading stocks and options. Authority figures and personalities spewing opinions and downright deceptions will drag you down if you are not careful.
You need to be severely critical of your information sources.
This includes news outlets, friends, family, and of course all the “expert” traders you follow on twitter.
I personally do not watch any T.V., news, talking head shows, etc… This does not mean you can’t but it is important to understand those sources are not there to help you make money. I have a very strong position in this area and if you care to discuss … hit me up on twitter.
Connect with REAL traders not BULLSHIT artists.
If you don’t already have one, you must somehow develop a very shrewd bullshit detector.
At a very basic level use a little common sense. If the guy spends more time marketing/selling his “system” that means he likely makes more money selling his how-to product than he does using it. What does that tell you?
I’m not saying that quality for profit trading education services don’t exist, but you have to make sure you understand the sellers true underlying motive.
There is a lot of money to be made selling dreams and lying to people who want to be lied to. Make sense?
Connect with a group of REAL traders.
Twitter is great for interacting with real guys and girls trading their own money. I can’t tell you how helpful this has been. The bad news is there are tons of knuckleheads and charlatans just waiting to eat you alive. Be careful who you follow and learn from.
- You absolutely can make a living trading if you are truly committed.
- It is not easy money.
- Having business experience helps.
- Don’t be an idiot and let other people take advantage of you.
- Be extremely critical of authority figures and so called experts.
- Profit or die. Trading is a business not a game.
- Work hard. Stay humble.
- Accept 100% personal accountability for your actions.
- Find good people/traders to interact with and learn from them.
26 Quickfire Tips to Become a Successful Forex Trader
Forex trading can be a tough nut to crack, especially if you’re just starting out. While experience is king when it comes to trading performance, a few quick tips can’t hurt either.
That’s why I’ve compiled a list of 26 quick-fire tips to help you become a successful Forex trader. Take the ones you like and make sure to remember them the next time you place a trade.
General Trading Tips
#1 How to become an online trader?
Let’s start with the first tip that caters to people who look to get their feet wet in trading for the first time. Forex trading requirements are quite low – all you need to become an online trader are two things: a computer and a brokerage account.
While the latter can be opened in a few minutes, prepare for a few weeks or months of training and learning before you start to see positive results in the markets. Trading isn’t hard, but you need to understand the foundations, follow the rules and always keep an eye on your trading capital.
#2 Choose a quiet place when trading from home
Most Forex traders trade from their home. Make sure you have a comfortable and quiet place in your home to go through your charts without distractions. Also, always have a notebook or spreadsheet at hand as they will be a lot of things to write down if you’re a beginner in the market. Download your free journal trading spreadsheet here.
#3 Start with longer-term charts
Whether you’re a newbie or already have some first-time experience in trading, I always recommend to start trading on longer-term charts, such as the 4-hour and daily charts. This will give you enough time to analyse the market, look for trading opportunities and observe your emotions.
Once you feel comfortable with these timeframes, you can start to explore day trading and other shorter-term trading styles.
#4 Trade cross-pairs
A common mistake of many Forex traders is to focus too much on major pairs. Major pairs are pairs that include the US dollar and one of the seven remaining major currencies, such as EUR/USD and GBP/USD.
Cross-pairs include any major currency except the US dollar, e.g. GBP/JPY, AUD/NZD, and EUR/AUD. These pairs often hide excellent trading opportunities and offer enough volatility to make an attractive profit. Check out the 16 most traded currency pairs.
#5 Follow other markets
No financial market is isolated from other markets, and Forex is no exception. My morning routine starts with checking the performance of major equity indices, such as the S&P 500 and German DAX, the price of gold and changes in bond yields before I even take a look at a currency pair. I recommend you read the Savvy Trader’s Guide to Major Forex News.
Traders love trends as they offer enormous profit potential with a relatively small risk. Here’re our top tips for trend-followers.
#6 Trade in the direction of the trend
Trend-following trading strategies have a proven track-record and are among the best strategies a trader can opt for. Always trade in the direction of the established trend – never against it! There’s a saying “The trend is your friend”, keep that in mind the next time you place a trade.
#7 “Buy low, sell high”
Another popular saying in the trading community is “Buy low, sell high”. However, how low is low enough?
Here’s a tip: When trends are strong, market corrections usually reach around the 38.2% Fibonacci retracement level. Weaker trends have corrections that can reach the 61.8% level. Always get into a trend when prices start to fall. Professionals buy low, while beginners tend to buy at the peak of an uptrend.
#8 Confirm a trade with candlestick patterns
Candlestick patterns are a great tool that reveals the psychology of market participants. While you shouldn’t trade based only on candlestick patterns, they work very good as a confirmation tool.
For example: If a strong Marubozu pattern forms at an important support or resistance level, the price will likely continue in the direction of the candlestick pattern. Steve Nison has a very popular book about candlestick patterns called “Japanese Candlestick Charting Techniques”.
#9 Mark peaks and troughs in the market
When markets are trending, they form higher highs and higher lows during uptrends and lower lows and lower highs during downtrends. Marking these peaks and troughs can provide you a clearer picture of where the market is heading.
If the price forms a fresh lower low during an uptrend, which means the price has broken below the previous higher low, there’s a large chance that the current uptrend will reverse into a downtrend. The same is true when the price prints a fresh higher high during a downtrend.
#10 Stay up-to-date on market fundamentals
Market fundamentals can send shockwaves through the market, especially if they catch investors by surprise. Staying updated on market fundamentals and important news releases for the current trading week will place you heads and shoulders above other, passive traders.
Try to identify trends in important market reports.
For example: If unemployment rates have fallen for the last few months, there’s a high chance that the next report will be strong as well. Improving market fundamentals will eventually trigger a reaction from central banks and lead to rate hikes.
Technical Indicator Tips
Technical indicators can be both fascinating and confusing at the same time. Here’re a few tips that will help you get the most out of them.
#11 Stick to a couple of indicators
The most common mistake involving technical indicators is redundancy. Traders apply dozens of indicators to their screen so that, in extreme cases, even the price-chart can be barely seen.
Indicators come in four main groups:
- Trend indicators
- Volatility indicators
- Volume indicators
Picking one indicator from each group and applying it to the screen is more than enough.
#12 Oscillators can stay overbought/oversold for a long time
Oscillators or momentum indicators give buy signals when prices fall and sell signals when prices rise. While they do a great job in ranging markets, you’ll get a lot of whipsaws when markets start trending.
Don’t follow their signals blindly – oscillators can stay overbought or oversold for long periods of time in trending markets.
#13 Exponential MAs work better than simple MAs
Moving averages are one of the most popular trend-following indicators among Forex traders. They come in two main versions: exponential moving averages (EMAs) and simple moving averages (SMAs).
EMAs place more importance on the most recent price-changes, which means that they usually work better and react quicker than SMAs.
#14 Indicators can be contradictory
Indicators from different groups often provide contradictory trading signals. Trend indicators give you a buy signal when prices rise, but oscillators say “sell”. When prices fall, trend indicators send a sell signal while oscillators become oversold and yell “buy”. Bear in mind that all indicators have their advantages and disadvantages.
#15 Learn how to trade on divergences
Trading on divergences is among the most important trading concepts that you can use with technical indicators. Divergences form when the price and the value of an oscillator start to diverge.
A bullish divergence forms when the price makes a lower low, but the indicator makes a higher low. Similarly, a bearish divergence forms when the price makes a higher high, but the indicator forms a lower high.
Oscillators such as the RSI, Stochastic indicator and MACD histogram are popular indicators to use when trading on divergences.
Forex Broker Tips
Your broker is your window to the world of financial markets. There are hundreds of currency brokers which compete for every new client – some of them advertise very low trading costs while others attract traders with extremely high leverage.
As always, the truth is usually between the lines. Here are a few tips when choosing your next Forex broker.
#16 Cheaper is not always better
Don’t fall into the trap of looking for the cheapest broker. Unless you’re a scalper or very heavy day trader, trading costs won’t make a large difference to your bottom line.
Most brokers have competitive spreads and you won’t feel a large difference with any of them. It’s much more important to look for licensed brokers that offer all trading instruments you want to trade.
#17 Avoid unregulated brokers
Always look for brokers that are regulated and secure. This ensures that the broker follows high industry standards and that all your funds deposited with the broker are kept segregated and safe. Popular regulatory authorities include the Cyprus-based CySEC and the FCA in the UK.
#18 Make sure your broker offers a range of trading instruments
Having a wide range of tradeable instruments at your disposal makes sure that you never miss a trading opportunity in one of those markets. Some brokers offer only major pairs and cross-pairs, while others provide access to certain shares as well. One of the most versatile brokers is CoreSpreads .
At Core Spreads, you can trade on dozens of the most popular currency pairs, including majors and minors. Commodities such as gold, silver, and Brent crude are also included, as well as stock indices and equities from the UK, Europe, and the US.
Risk & Money Management Tips
Risk and money management can make or break a trader. If there’s one thing you need to learn as early as possible in your trading career, it’s how to manage risk to preserve and grow your trading capital.
#19 Respect the 2% and 6% rules
The 2% and 6% rules refer to the risk you’re taking in the market. The 2% rule says that you shouldn’t risk more than 2% of your trading capital on any single trade.
If you have a trading capital of $10,000, the total risk you should take on a single trade would be $200. As your capital grows, you should even consider lowering your risk per trade to 1% or 0.5%.
The 6% rule refers to the total risk of all your open positions. You should never risk more than 6% of your trading capital on all your open trades.
For example: If you risk 2% per trade, the total number of trades you’re allowed to take under the 6% rule would be three.
However, if you risk only 0.5% per trade, the total allowed number of trades increases to 12. The 6% rule prevents you from losing a large portion of your trading capital if you have a bad trading day or week.
#20 Don’t overtrade the market
Overtrading the market is a common mistake among beginners. Unfortunately, it’s also one of the biggest mistakes a trader can make. Overtrading refers to trading very high position sizes that exceed the 2% and 6% rule and can ruin a trader’s account in a matter of minutes.
Beginners often feel invincible after a series of winning trades and believe that they’ve mastered the game. That’s exactly when they start to feel the urge for placing new trades and increasing their risk – an urge that will eventually blow their account.
#21 High leverage is dangerous
Many traders feel attracted to the Forex market because of the very high leverage offered by brokers. However, trading on high leverage can be quite dangerous.
Leverage allows traders to control a much higher position size than their trading capital, but leveraged trades magnify both your profit and losses. One single bad trade taken on very high leverage can wipe out your entire trading capital.
#22 Take advantage of trailing stops
Trailing stops are a type of stop-loss order that move with each price-tick that goes in your favour. If the market moves one pip in your favour, a trailing stop will automatically move your stop-loss for one pip and lock a part of your profits.
Trailing stops are often neglected by traders, even though they can play an important part and be an effective tool in risk management.
#23 Move your stops to break-even
Besides using trailing stops, you can also move your stop-loss manually to breakeven in a profitable trade.
For example: Once a trade reaches 33% of your profit target, you could move your stop to the entry price. Once 66% of your profit target is reached, move your stop to one-third of your initial profit target to lock those profits in case the market reverses against you.
Trading Psychology Tips
Moving on with the neglected fundamentals of trading, here’re a few pips that will help you control your emotions and avoid making impulsive trading decisions.
#24 Keep a trading journal
Trading journals consist of journal entries which explain why you’ve taken a trade, your entry and exit prices, position size, date and time of the trade and any other element that you deem important.
Keeping a trading journal and making regular retrospectives allows you to identify common trading mistakes and trading patterns that caused losses in the past. It also helps to fine-tune your trading strategy and entry and exit points.
#25 Have a written trading plan
A written and thought-out trading plan is the holy grail of trading. Your trading plan includes all elements of your trading, including your system, strategy, risk and money management rules.
Forget about trading plans stored on your hard-disk – to take the most out of a trading plan, you need to have it written on a piece of paper so that you can refer back to it whenever you feel difficulties in your trading.
#26 Take a break after a bad week or month
Let’s face it – even professional traders experience periods of time when things don’t go as planned. A bad trading week is not the end of the world.
Chances are that you’re tired or the market just doesn’t align with your trading system. In that case, don’t overtrade (see tip #20), take a look at your journal entries (see tip #24), and just take a break from the markets. You can also use that time for studying Forex trading.
Whether you’re a beginner, intermediate or experienced trader we can help you improve your trading:
How to Become a Trader – Guide to Reach the Pros
There are a lot of misconceptions about online trading especially in depicting the real job of a pro trader. This time we will show what it takes to become a professional trader, what are the different paths you can experiment with.
What type of trader you want to be?
First, let’s make it clear what the trader is. Trader as a category, is so broad, that it is almost meaningless. Basically, you can differentiate two types of trader: retail trader and institutional trader.
Before we jump in, let’s see some example of professional traders:
Describing the group of retail traders is like analyzing the animals of a zoo. But in the end, there are only two types of retail traders. The ones that get fed up with losing, and the ones that carry on and eventually become successful. The bright side of the story is that from being successful, you can build your own brand and influence others like Tim Sykes (later on him). Also, retail traders can earn money from social trading – our eToro review will introduce you to this topic – or from collecting subscribers to webinars and special mentoring.
Institutional trader as a category refers to the employee executing trades at the big investment bank, brokerage firm, or other companies. You will get fix salary and hopefully a hefty bonus at the end of the year.
However, this job requires that you can work under huge pressure and take the risk. You will risk your firm’s money. But guess what happens if you don’t get the market pulse for a couple of weeks or simply just lay back for a while until the next trading opportunity arrives? You are fired.
This handy table highlights the pros and cons of the retail and institutional traders.
|Institutional (market maker)|