There's no doubt that the labour market seems to be something of a walking contradiction at present. After all, while the rate of unemployment fell to a record low of 4.2% during the third financial quarter, there remains an argument that the economy is failing to stimulate real wage growth and create well-paid (or skilled) opportunities.
This is concerning, particularly with the cost of living continuing to rise at such a disproportionate rate. This is why so many workers are now seeking out freelance opportunities, as they look to boost their earnings and carve their own, unique career paths.
Financial market and stock trading is a particularly appealing option in the digital age, due to the accessibility of online trading accounts and their comprehensive analytical tools. It's important to determine whether or not stock trading is the career for you before you take the plunge, however, so here are some key considerations to help you on your way.
- Do you Have an Appetite for Risk?
Let's face facts; transitioning from full-time employment to freelancing represents a calculated risk. After all, you'll suddenly be responsible for sourcing your own workload, while also assuming responsibility for strategic disciplines such as marketing, sales and the management of your finances.
If you want a career as a stock trader, however, you'll need to have a healthy appetite for risk that enables you to take your hard-earned money and invest this in targeted shares. While stock trading at least offers you access to a secure store of tangible wealth that can be held indefinitely, there's still the potential to lose money and endure months where your earnings may be minimal (particularly when you start out).
The prospect of losing money in the short-term is one that sets this type of freelance career apart, so you must be willing to embrace this and manage the risk effectively if you're to enjoy a success as a stock trader.
Preparedness is Key
If there's one lesson you need to take away from this piece, it's this one. You cannot possible trade stocks successfully with a broad foundation of knowledge, while you'll also need to scale your career in order to minimise the innate risk associated with the financial markets.
Fortunately, the modern online trading account can help with these, as this offers you access to key learning resources and simulated demo accounts. So, not only can you learn about the fundamental principles of the market and the ways in which it works, but it's also possible to apply this knowledge in a simulated, but real-time, trading environment. Demo accounts operate in exactly the same way as real ones, with the only difference being that they let you trade using fake money.
We'd certainly recommend that you learn and hone your trading strategies while you continue in your current career, enabling you to hit the ground running when you enter the market for real. This will require focus and a strong work-ethic, of course, but these are elements that will also stand you in good stead as a stock trader.
Are you Passionate or Clinical?
This is an important consideration, as your personal attributes go a long way to determining whether or not a career in stock trading is right for you. It's important to note that all financial markets are deterministic by their nature, meaning that events are usually dictated and influenced by a number of underlying, natural laws.
If you trade with emotion, however, it's easy to lose sight of this and execute trades based on knee-jerk news and economic developments, without ever really understanding how these events will impact on the stock market.
If you're a passionate and emotive individual, stock trading may not be the natural choice of career for you. Conversely, if you have an analytical and clinical mind-set that boasts excellent levels of critical thinking, this is a career path that will enable you to shine and achieve a number of your financial objectives.