Deciding on whether equity trading is the right choice for you depends on a lot of factors, some that are external and others that have more to do with your specific circumstances and what you hope to gain as an equity trader.
Having said that, here are some pointers that would give you clarity on whether your profile would suit the challenges of equity trading or not.
It is a well known fact that only a small percentage of all equity traders make money. Typically, the traders who do earn themselves a lucrative deal devote a great deal of time and effort to the activity, just like in a full time job. It is important for anyone planning to trade in equity to realise that trading successfully will involve long hours of work – certainly much more than a quick half hour during your lunch break or your free time.
Those who trade well enough to earn some sort of income out of it often invest in expensive trading technology, data subscriptions and personal connections. Although not a prerequisite, it always helps to be well armed before going out to battle.
Successful traders are constantly learning, reading, gathering data and studying the trends from different perspectives. They live for the thrill of discovering something new every day about market trends, comparing it with historical data available, trying to gain deeper insights and also making forecasts and predictions. The money they earn is almost like an afterthought of all this hustle and bustle of activity. So you ought to ask yourself, “Are you willing to become a lifelong student of the market?”
Even after reading all the books related to trading, you would still need to put those theories into practice. Learning to trade is a constant case of trial and error. Most traders are here for the joy of trading. They thrive on experience and treat every loss as another lesson learnt which only helps them visualise the big picture more clearly.
We hope some of these pointers help you make an informed decision as you enter this exciting world! Happy trading!