When it comes to the importance of hobbies, the public opinion is pretty clear: having a hobby is important, according to 74% of people surveyed on the topic by AYTM. Only a minority of people don’t have a hobby, some 20%, while 56% would say they have two or more hobbies. When it comes to the most popular interests, games and arts and crafts tend to lead the pack.
Day trading is an activity that’s increasingly being taken up by people, even in a casual capacity, that rarely gets called a hobby. Part of the reason probably stems from the fact that, even when not done professionally, the potential consequences of dabbling in it paint day trading as a weightier activity.
For Gary Trades, day trading has been a source of much fulfillment, financially, professionally, and even personally, as it allows him to spend his resources to help others. Even though Gary would be the last person to say bad things about it, he recognizes that day trading isn’t for everyone. Here are some things he’d like everyone to consider before taking it up.
It Takes Money to Day Trade
“It’s possible to make money day trading,” says Gary Trades (Mystic Mac). “The adage about spending money to make money applies, however, because day trading can wipe out a lot of money for good in a little more than a blink of an eye.”
The moral here is that day traders should have enough money to make the kinds of moves that will get the returns. However, they should only trade with the money they can afford to lose; trading rent money, food money, or gas money isn’t usually a good idea.
The Learning Curve Can Be Steep
It’s impossible to just jump into day trading and achieve any level of success. There’s an abundance of resources to learn about, and many of them are free, so anyone should first make sure to get through them before they spend their first dollar on a purchase.
Gary Trades often helps out new traders. “Through in-person conferences and live streams, I have been able to reach a large audience of aspiring traders,” he explains. “I assisted them on their journey to become financially free.” However, all of them needed to have at least the basics down to be able to understand the matter. For someone who has never been into trading, the learning curve can be steep.
A Certain Kind of Personality Can Give an Edge
When the stakes are high, emotions follow suit. It’s easy to be swept away by momentum and enthusiasm or to be brought to one’s knees by despair. Neither of the two will be productive, so traders need to learn how to keep themselves in check.
“I am known for emotionless trading,” Gary Trades says. “It pays to have a well-balanced, chill type of personality. Trading requires a certain level of discipline to be able to execute strategies well, and people who don’t have that, or don’t plan on developing it, should consider if day trading is a good choice for them.”