12 May Five Signs You’re Ready To Start Trading
Five Signs That You're Ready To Start Trading
Trading isn’t necessarily the first thing people think of when they consider a career, but for those that are eagerly awaiting the day they are ready to jump into the markets, knowing what that day will be is a must. Not only will you need to ensure you’re financially fit and not relying on payday loans from companies like Uncle Buck Loans just to get by, but you’ll also need to have the right mind set. Here, we’re exploring five signs that you need to watch out for to know that you’re ready to start trading!
You Can Afford To
While you could arguably start trading with not very much, being able to afford trading goes far beyond the money you have in your bank account. Instead, affording trading comes down to your level of debt. If you have debts, your money will have a better place to go to rather than into the stock markets and will continue to until these are paid off. If you reach a time where you no longer have any high interest debts, you can probably say that you’re ready to break out in the world of trading.
You Have An Emergency Fund
Before you can consider put your money into trading, you need to have a substantial emergency fund. If you don’t have this fund, then it’s unlikely that you’re actually in a financial position in which to trade. With an emergency fund, you can trade confidently without needing to worry about potential debt you could get yourself into if you run into an issue in the future. A suggested emergency fund is around 3-6 months of living expenses, at which point you can start to invest and potentially start putting some of those earnings towards growing your emergency fund too!
You’re Willing to Take Risks
To be able to trade and invest with any confidence, you need to be willing to take risks. While these should always be informed risks, having the ability to make quick trades while taking risks could actually work out better in the long run. Of course, you have to also be willing to accept when you make a loss, but that’s all part of the risk.
You’re Prepared To Work All The Time
Trading is a 24/7 job in some cases, especially if you’re looking to follow trends and buy and sell at the optimal times. In foreign markets in particular, you could find that a lot of the activity takes place overnight, and you could still be awake late into the night watching these markets. If you have a full time job, this might not be ideal and so markets within your own country or even locally could be a better choice. Regardless, being prepared to put the work in is another sign that you’re ready to trade.
You Have A Support Network
Trade’s don’t always go well and operating in the markets can be an emotional rollercoaster that your mind and body just isn’t used to. The best way to deal with this is to have a support network that is completely in tune with your trading goals. Without this support network, you are at risk of not being to cope with stress, anxiety and potentially falling prey to mental health concerns as a result.
If you can safely say ‘yes’ to all of the above, you’re ready to start trading! In simple terms, being in a financially secure position and having the right mentality and support network is all you need to be in a position to trade, so why not give it a try?