Monday, July 6, 2009

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Why You Should Consider Share Trading As A Profession?

Do you consider stock trading as a profession?Image Source

Much like the many professions in our society, the stock trading is in itself a profession of modern civilization. Unless you are a day trader, the money you earn from trading or investing in stocks is a passive income stream. Whether you trade daily or over a time period, it can still be a profession if done in a professional manner. Many traders just don’t put the time required because they do not consider it as a profession.

Why is Stock Trading a Profession?

Stock trading involves the same kind of effort like any other activity. But why do people ignore this aspect of stock trading? This is because the potential for returns from the stock market is very high. Even by chance you may end up making great gains from stocks without spending any time for it. All you would have to do is to buy and sell the stocks.

With the potential for high return stock trading also involves high risk factor. Risk does not mean certainty of loss. It means that if ended up in loss it will be a big loss than any other loss in your life. Similarly potential for returns means not certainty of gain but big gains for less activity when things go in your favor.

When a trader spends some time to study, analyze and plan for future trades, learn from past trades, he/she can be considered a professional stock trader. The time and effort you spend may not be much depending on your strategies and trading principles. But what is important is that you give it its due consideration. Then it becomes a profession though not full time. Otherwise it will be like gambling in a casino.

Stock Trading is a Sophisticated Profession!

Unlike any other profession you must have known, the stock trading is the most sophisticated profession I have ever known. It involves the same kind of effort and analysis. It requires intelligence and alertness. But it has special characteristics that make it far better than any other profession. There are risks too for this profession.

You get to trade only on days when markets are open for trading. Your time for studying and preparing for next day will also be limited to the time market is open. The stock markets actually trade for much less time than any other office works. As I explained earlier about the time to trade in your life, it is just half the time that you get to trade stocks compared to any other job.

That gives a great deal of time for studying the markets, learning lessons, strategies, principles and also working on any other part time profession as well. Even if you do not trade stocks for full time, you may still trade stocks for a little time in your day and have a full time job. Stock trading allows that. And the returns too are not greatly different in either way. The difference comes from the trading style and strategies.

The kind of returns that stock trading can give and the time it needs from our day make it a really sophisticated profession. It is harder than any other profession. But it also entails great risk if taken full time. That is why one needs enough courage and a brave heart to make an entry into this profession.

Stock Trading can Also be a Hobby

Depending on what suits you, you can consider trading as a full time profession or only as a hobby. I too considered stock trading as a hobby much like other the hobbies. Many people have different hobbies in their life. The time spent for each of them is different. And different people spend different amounts of time for their hobbies.

Some people spend time for browsing orkut and other social networking sites. Some people spend time on browing blogs and internet. Some people spend time watching cricket and browsing internet for cricket score and other related information. Some people play computer games. And some spend time chatting in gmail or gtalk (may be all the day!). Some just spend time on research or study related to their current profession. Some people spend time for improving personal and professional life.

Similarly some people spend time studying stock markets and trading stocks. Because they spend only part of their daily life it is much like a hobby. Many traders trade stocks for the pleasure it gives and not considering it as another profession or income generator.

Why Consider Stock Trading as a Profession?

It does not matter whether stock trading is a hobby for you as long as you have a full time job. But if you want to make great strides in stock trading even by spending a little time from your day, you should certainly consider it as a profession. That is when you can commit to learn and apply powerful trading principles consistently. It is only consistent trading that gives a long term success in stock trading. Otherwise you will also join the group of losers who quit after three consecutive losses!

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