If your ultimate goal is to know whether you can make a living from the stock make, then the simple answer is YES. Yes you can make a living from the Stock Market. We assume you already know how the stock market works.
There are lots of people making a living from the stock market. With little discipline, knowledge and expertise you can make a good living from the stock market. Making a living from the stock Market will also depend on your lifestyle. How much do you need to support or maintain your lifestyle? You need to know how much you need to earn in order to maintain your desire lifestyle.
Stock Trading Plan
To make a living from the stock market, you need to have a stock trading plan. It’s almost impossible to become a successful trader without having a trading plan. You need to have a set of rules to manage your emotions, greed, commitment, trade size. Those are few of the things you need to include in your stock trading plan.
- Adhere to your plan. Your plan was created to expose you to the greatest profitability with the least amount of risk. Never endeavor to outsmart the market. You should be successful if you simply follow your plan and believe in your study.
- Recognize when to exit a trade. The process of trading is thrilling and emotional. However, when traders let their emotions to take over, they frequently suffer big losses.
It’s time to leave the market and return later if you notice that fear or greed is consuming you as you trade.
Begin small. Trading is not a way to become wealthy quickly. It’s a procedure that calls for some patience and a steep learning curve.
Pattern Day Trader Rule
To make a living from the stock market, we suggest you have a portfolio of over $25K. Having said that, it’s still difficult to make a living from a portfolio under $100K. Having a portfolio balance less than $25K makes it difficult to make a living from stock trading. It will be difficult but not impossible. There is a rule called pattern day trading.
The pattern day trader is imposed on accounts below $25K. The pattern day trader limits small accounts from executing more than 4 trades weekly.