The Many Reasons to Start Trading
Posted on 11th May 2022
I have been fortunate to work with many traders over the years, all with different aspirations, at different stages of their lives, different levels of experience when it comes to trading, and ultimately different reasons as to why they want to trade.
Here I look at the main reasons that most people decide to try and learn to trade
Financial Freedom:
Perhaps the most obvious one is the freedom that trading can provide. The need only to answer to yourself and be your own boss. The fact that all you need is a device and an internet connection give you the freedom to work from anywhere in the world, whenever you choose to. You are in control of the destiny of your own finances and future.
Create a new income stream:
Many just wish to create an additional income stream alongside their current income. Either to supplement a pension in retirement or to relieve the burden of the rising cost of living that we all are experiencing at the moment, through to replacing a full-time income. What this income stream looks like and how much it varies greatly depending on the trader and the desired lifestyle they wish to maintain.
Make their money work for them:
Even with interest rates going up at the moment, inflation is also extremely high, which means, if your money is sitting in a bank account, its spending power is declining all the time. People therefore want to make their money work for them, and help increase their capital to improve their finances for the long-term. Some wish to take an active role in their financial future, and trading can offer them a chance to develop the skills to do this.
‘’In the long run, we shape our lives, and we shape ourselves. The process never ends until the day we die. The choices we make are ultimately our own responsibility’’ – Eleanor Roosevelt
Embark on a new career:
Some, become disillusioned with their current job and career, having done the same thing for an extended period of time, and want a fresh challenge. Tired of working for and answering to someone else. They look for a way to create freedom for themselves, in a new environment, where they get to set the boundaries. Trading offers this – however, it will require a substantial period of education, dedication and a steep learning curve, as it would if you were to choose to move into any new industry.
Opportunity:
With increased volatility in the markets at the moment, there is higher volatility in the markets. This in itself creates more opportunities to make money when it comes to trading, as long as you have the experience and education to know what to look out for and how to act upon that. When volatility in the market, or other market sentiment threatens the value of someone’s portfolio or other assets, this volatility can create an opportunity to hedge and earn some income when other asset classes are being affected. This is because, as active traders, we can take advantage of opportunities whether the markets are moving up or down.
Learn a new skill:
Some people enter trading just to learn and develop a new skill. To grow as individuals we must always look to further education, no matter what stage of life we are at. Whether a student with a thirst for knowledge looking to develop the skills which can help them create an income stream throughout their life, a retiree or someone who is looking to develop a skill that can keep them active in retirement, whilst also supplementing their pension, and everything in between. Trading offers the opportunity to develop a skill that you can carry with you through the rest of your life, which can help you earn extra income
To help others:
Others learn to trade to help others. Whether that be their family and friends or charity work, being able to generate additional income can and should hugely benefit everyone around us.
The reasons are very individual, and I am sure there are many other reasons that people have to start their trading journey. Only when we take action can we make change. So whatever you reasons are, take action today and begin your trading journey. Make It Happen.
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