RE: Can you trade for a living?27 Jul 2024 14:28
Muminr: I have been thinking about leaving my job and becoming a full trader since last year. I have done some research. One needs a minimum of £25000. The AIM market is too risky so I chose JD Sports for my dummy trades. Due to volatility, it swings 5 to 7 pence daily. It closed at 123p on Friday and has been range bonding between 110 to 130p. Once the RSI reaches a high (above 70) I wait for the share price to make a dip before buying again.
For example, buying at 111p and selling at 114p (3p) you are making £500 after paying commission and charges on every trade. This is my game plan (trade a stock for a 3p difference to make money). However, many experienced traders suggest having at least one year’s worth of income set aside before you start trading. These funds should be set aside purely for living expenses such as housing, insurance, and food. Having this financial cushion will give you peace of mind, allowing you to begin your new career without the pressure of having to pay rent.
Any comments from experienced trades will be appreciated.