Are you doing ‘trading for a living?’ Is it possible to make a living only by trading? Dr. Alexander Elder explains it to you through his best-selling book.
While trading was often regarded as an impossible make-a-living option, it is not anymore. The era is changing, so is trading and the possibilities it carries.
Now, everyone can do trading so long as they keep on having a strong drive to do so. Also, it is possible to do it with a little to minimum amount of money.
Also Read: Trading Strategies for Novice Traders
Why Trading for a Living is Possible
The advancement of technology and the regularly escalating trading frequencies have allowed the field to even become a main job since the last decades.
In his book, Dr. Elder explained that trading for a living is happening for now and many people are aspiring to do one.
“You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody. This is the life of a successful trader,” he wrote in the introduction.
However, although many people are longing for becoming a successful trader, many fail to do so. One does not simply is to live by the trade. So, how to do so?
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Live by Trading
Dr. Alexander Elder highlighted three most important components in trading, which are (1) psychology, (2) market analysis and trading systems, and (3) money management.
First of all, he pointed out that the psychology is the key in trading. No matter how resourceful you are in technical analysis, capitals, or even insider information, you can never negate its importance. Put simply, it will influence towards your risk management, stop losses, and so forth.
The second being market analysis and trading system. It is nonsensical if you do something with poor basic understanding of it. Any form of analysis and systematic flows are important.
Last but not least, it is money management. Without proper management skills, you will never be able to trade for a living. You will end up making trading your additional income. Thanks to bad money management skills.
Also Read: 3 Novice Trader’s Trading Mistakes