When you fist start planning a career in trading on the stock or Forex markets it can be very tempting to rush right in and try your hand at trading – just to get right to the money. However, for most of us, our first years of trading were not times of high earnings and sudden windfalls. In fact most traders will spend their first year losing small amounts of money at a time and only making marginal gains.
Training during this time is of paramount importance if you’re going to survive into your second year and I’d fully recommend practicing every hour that you can and reading everything available on the markets you intend to trade on – using this site is a very good start so well done there. However, today I really wanted to talk about financing your first year of trading as it can be difficult and disheartening keeping your bank balance healthy as you learn a career that you know eventually will start paying you high amounts. So, with that in mind, let’ look at the ways we can finance our first year of trading.
Financing Methods for Trading
Credit cards are of course risky and if used unwisely can lead you to debt. However I know a number of people who have used balance transfer credit cards to shift the money they spend in their first year between debt providers in order to create a breathing space for continued learning and development. I do not recommend using credit cards to finance your trading itself –as initially this is too risky. However, using credit cards carefully can allow you to take advantage of an essentially free loan by switching debts between 0% interest rate credit cards. To do this you need a lot of credit cards and a good grasp of mathematics – essential for trading anyway!
Whilst many of us are driven by a desire to give up our day jobs many people do manage to learn trading around their other commitments and, if you can balance the time while holding down even a part time job, this will make your first tentative footsteps into trading much easier. You will be able to hold a stable income whilst giving yourself the time, money and motivation to start your new life changing career. This makes part time work one of the best ways to finance a new trading career but of course for some this is not achievable.
Small loans can give you access to some quick capital and allow you to finance your living costs for a while whilst you learn everything you can. Small loans however can lead you into debt so you want to already be trading to a reasonable standard before you take out anything even remotely high as a loan. Generally I would recommend trying to avoid loans if possible.
Whichever options you choose to use remember that the most important thing you can do is learn everything. Trading is an incredibly rewarding career – both monetarily and personally – but you want to remain financially stable. Don’t let yourself get into debts you can’t cover and remember to trade only with money you can afford to lose initially. Once you get the expertise you’ll soon find yourself profiting admirably, so good luck.