Stock trading or job?
Quitting a stable job to start trading in the stock market is a topic of discussion that intrigues all of us. The stock market is a place that can give us very high profits within a short time, maybe a few days or weeks, with the help of proper trading strategies and tools, as compared to a job that can help us earn only a fixed salary every month, which may increase over a long period.Thus, the idea of quick money is very lucrative, and we are often drawn to making careless decisions about which path to choose, making our financial future unstable and at huge risk. The final decision to quit job to trade in stocks, of course, depends on the individual's risk appetite, knowledge and expertise in the stock market. But it is always better to weigh the pros and cons of quitting a job and turning stock trading into a career option, before taking the plunge.
Career in stock trading - The opportunities:
1. High returns - Stock market trading can give us exorbitant returns within a very short period if the trader can identify the correct trading opportunity at the correct time. This requires a very detailed study and a thorough understanding of what is actually going on in the market regarding current trends, the latest news, economic conditions, and technical and fundamental strategies to be used.
2. Pursuing passion - Many of us have the passion to try our hand at trading and investing in the stock market. We crave to know more about it and love to dive into any practical details related to it. Therefore, getting the opportunity to actually turn our passion into a career option and earn from it is a very satisfactory feeling.
3. Be our own boss - There is no need to make adjustments at the workplace or obey the orders of managers by working for someone else because we are our own boss We also have the flexibility to make our own decisions and enjoy the entire earnings for our own benefit.
4. Flexibility of work - We can work on studying strategies and learning about the stock market from the comfort of our homes as and when we choose.
Career in stock market - The threats:
1. Detailed analysis - Trading in the stock market requires a huge level of study and analysis that is not only time-consuming but also very stressful. It is easy to just learn a few concepts and start trading but that will lead to more speculation than investment, which has a huge potential of losses.
2. Huge risk - Risk is the main factor that stops us from entering the stock market altogether. There is an inherent risk of losses if our strategies are not correct. Money flows out of our hands within no time and it is very difficult to make a balanced and informed decision when our trade is in losses.
3. Influence of external factors - No one can deny the fact that a large part of stock market returns depends on external factors like any unforeseen political or economic contingencies, natural disasters, sudden news, etc. No matter how great the trading opportunity is, everything can change at the last moment due to some unanticipated event.
4. Lack of experience - Experience plays a vital role in stock trading. Experience teaches us how to identify trading opportunities, how to identify trends related to rising or falling stock prices, and what method to adopt to grab the chance, how much return to expect, when is the time to exit or how to interpret any market-related news. It takes a long time, perhaps many years to get a good hold of such skills. New entrants will not have such clear skills and confidence.
5. Control over emotion - Another skill required to trade confidently in the stock market is good control over emotions like greed and fear. But it is difficult to control them when trade goes either very well or against our expectations. Therefore, the idea to quit job to trade in stocks will require a lot of emotional control.
6. No guarantee of fixed return - This is another major factor to be considered. No one can say that they can expect a steady flow of return throughout the year on every trade, no matter how experienced or skilled traders they are.
Conclusion:
Keeping all the above points in mind, it is not easy to decide whether a trader should take up stock trading as a full-time career or just decide to keep it as a side income. So, the step to quit a job to trade in stocks involves huge risks that may be managed if the individual has good savings to cover any sudden losses, has long-term experience with different trading strategies and market situations along with a proven track record of success in trades. However, it is always advisable to take the help of professionals and assess one's financial situation before making the decision to quit a stable job and earn from stock trading.
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