Hello...I am new to this forum as well as trading. I have just started reading about trading and want to generate additional income besides my full time day job. I am planning to read for next 6 months to understand the market and then jump into it to trade. I think this is a good forum and I have started exploring it too. I will appreciate if pros comment whether this is a right strategy or there are other easier ways to make money.
A "right strategy" is one that makes money--and there are many other easier ways to make money. Pretty much any other job is easier to make money, in the sense that I don't know any other jobs where you can actually lose money. If you're looking for extra money, best to get a part time job. Trading for extra money will likely cost you money, exactly the opposite of what you want to achieve.
The following 13 users say Thank You to josh for this post:
I just want to let you know that making money consistently over the long haul out of trading is no easy task.
Many people are drawn to this business by forex brokers advertising how easy it is to make 5k in 30min and such crap. Yes it can be easy to make 5k in 30min and it can be done. But that is not what you will be doing when you start your trading hobby.
Trading is a very tough mental and emotional ride that takes a long time to master. No easy money to be gained from it if you are looking for something that will bring in extra capital in the long run.
IF you don't want to put in countless hours and suffer through hundreds of setbacks you best take another route to get the extra income you are looking for. Trading can be very consuming and will take a whole lot of your time if you are the type of person that does not want to quit what they started until they are successful at the task.
On the other hand, if you are looking for a great challenge then: Welcome to the most challenging game in the world!
The following 13 users say Thank You to iankotze for this post:
Thanks for all the replies. I have started spending more time on reading in general and exploring the forum. I have ordered 10-12 books from the library so I can so some serious learning. While going through one thread this morning, I found that Mike is saying to spend atleast 2 years before you actually start live trading. If that's the way to go then I know I have to spend lot of hours learning the terminology and figure out which market is good for me.
Initially, I was thinking that I will be up and running in a month but after a week of going through the posts, I have figured out that its better to take time and go slowly rather than rushing and loosing your money. Some one said Trading is marathon not a sprint. So I will start studying about it.
The following user says Thank You to IndusDolphin for this post:
I think Mike would probably agree with this these days: it is better to do some simulation for a couple of months and then open a forex account with a small amount of money that you can afford to lose (even just $100, as long as the broker supports micro or smaller lot sizes), than to spend 2 years in simulation only then to discover just how different reality is.
The following 6 users say Thank You to josh for this post:
Sorry for the confusion the title may have caused. By making extra money on side, I didn't mean that I won't take it serious. All I meant was doing it on sides while keeping my full time job. After going though tons of posts, I have realised that its not a "Get Rich Quick" thing. One has to spend a lot of time learning and understanding. I have read that people are making money but at the same time lot more are losing it too.
I have started learning everyday and over the weekend by going through books and the video trainings that I already have. I am still not sure which instrument to trade. May that is very early to decide. One month down the road, I will see if is becomes clear else will seek advice.
Just a background, I am an Engineer and working full time. I can spend may be 2-3 hours everyday on learning about trading. I have a video training on Professional Trader Series by "Online Training Academy" from 2003. I have started listening to these videos so I can understand the lingo. Is it OK to listen 2003 training or should I try to get the new ones. Are these still going to be relevant?
Beside that I have selected 10-12 books and will get them from the library and will go through them. Does this sound like a good plan? Any suggestions?
As I understood your questions more related to the aspect of keeping a job AND trading on the side (i.e. no full-time trading), I'd like to say, that this is possible, once you've went through the learning curve. It is then a matter of choosing the right time frame to trade off. I don't suggest strategies which require you to act fast if you are at work.
The following user says Thank You to karoshiman for this post: