The major goal for everyone I have interacted with in my adult life is to attain financial freedom.
We all want to quit the rat race and begin eating life with a big spoon.
But what are the various avenues available for one to attain financial freedom? Is trading one of them? Can you really make money every day from trading?
And if so, do you really know how to trade?
To want to start making money trading every day, you would first want to understand what trading. So what exactly is trading?
What is Trading?
Trading is a simple concept.
It entails speculating on the prices of different assets among them currency pairs, stocks, commodities, indices, ETFs, Cryptocurrencies, and many other assets on the asset market.
As you speculate on where the prices are headed, you make money if the price goes in the direction of your speculation.
And there are two trading modes in most trading platforms. Fixed time mode and Forex mode.
If you decide to trade Fixed Time Trades on any asset, you will earn a fixed percentage of the invested amount if the price closes in the direction of your speculation after the specified duration.
If trading Forex, on the other hand, you earn as much money as the price moves in the direction of your speculation – until you close the trade either manually or automatically using a Take Profit.
There is a catch though.
It is not all earning without losing.
We have only talked about cases where the price goes in the direction of your speculation.
What about in cases where the price actually goes opposite the direction of your speculation? You lose money!!
If trading fixed time trades on any asset, you lose all the invested amount if the price closes in the direction opposite that of your speculation after the specified duration.
If trading Forex, on the other hand, you lose as much money as the price moves in the direction opposite that of your speculation until you close the trade either manually or automatically using a Stop Loss.
Profitability in Trading.
What the above means is that profitability in trading is based on winning more and losing less.
It is the only way you can emerge profitable.
Mind you, if you lose more than you win, then the net effect is a loss.
Those trading Forex can maximize on their winners and minimize their losers.
They may actually lose more trades than they win and still emerge profitable because winning trades earn them dozens of what losing trades take from them.
Fixed Time trades on the other hand have no option but to win more than they lose or alternatively use a money management system that enables them to recover and gain ahead.
Can You Make Money Every Day From Trading?
Forex this, Fixed Time that, but still, the question remains.
Can you make money every day from trading?
Well, I don’t have the guts to give an absolute answer at this point, but I can show you how to ensure you make money every day from trading.
After then, you can answer the question yourself. Sounds interesting, right?
Here are the conditions to be met in order to make money every day from trading:
- Read to be Ready.
- Choose a Reliable Broker.
- Make Use of the Demo Account.
- Formulate a Trading Strategy.
- Use Money Management.
- Tame Your Emotions.
- Have Realistic Goals.
- You need Money to Make Money.
Read to be Ready.
I won’t lie to you that you will just wake up one day and without the knowledge of what you are doing, go ahead making money trading.
If anyone ever said that to you, then you will have to really ask yourself lots of questions about them. Are they really being genuine with you?
You must acquire knowledge about the various markets, brokers, analyses, and most importantly, how to trade.
Imagine me telling you how to make money everyday trading yet I haven’t told you that you need to learn how to trade first? How ridiculous would that be?
Find E-books to read, articles, watch tutorials and understand what trading is and how to go about it.
Where should you get trading materials to read? The internet of course.
The internet has made everything easy and almost every material that you can think of is available at the touch of a button.
Choose a Reliable Broker.
Having a reliable broker is as important as knowing how to trade.
Why do I say so?
Because you cannot make money with a broker which is out here to steal from you or make your life difficult by holding your money.
With some brokers, yes you will make a deposit and try trading, but you might never even withdraw that money.
They are called Scammers and if I tell you that they do exist, you gotta believe me.
Do not just open an account with a broker for the reason that they are a broker.
They might even give you fat welcome bonuses or any other incentives but don’t fall for it.
Do your research first before you can open an account with any broker.
Aren’t there thousands of reviews about any other product online?
Then why don’t you make use of such reviews to see which broker you can rely on and which one to run away from? You will have saved yourself a lot of headaches by doing so.
Make Use of the Demo Account.
Once you have a good and reliable broker, then you can open a demo account with them.
Don’t rush to depositing money right away.
These markets aren’t kind to anyone sometimes and you may just have signed up for the whacking of your life.
So what is a demo account?
An account loaded with virtual funds by your broker, funds whose profits cannot be withdrawn.
The purpose of having a demo account is to practice trading risk-free under real market conditions.
Imagine you are experiencing the same market conditions which real traders are, but you are on a demo account meaning you aren’t using your own money.
That beats anything else, right?
This step of using a demo account can never be skipped by anyone who wishes to start making money daily trading.
It is here on a demo account where you get to learn what works and what doesn’t.
You can then stick to what works and improve it until you have a solid strategy that consistently makes you money.
It is such a strategy, if it proves to work, that you can then employ on a real account.
You will remember I always say that what works on demo will also work on real because both account types are under the same market conditions.
Formulate a Trading Strategy.
Trading and gambling will never be used in one sentence.
Quick money is not the language of a trader. Rather, consistent money is what we talk about in this game.
For consistent money to come flowing into your pocket out of trading, it won’t be by mere luck or chance.
You must have a strategy by which all this happens. You must make it happen by using a solid trading strategy.
So do you remember where strategies are made?
On a demo account, not real.
Use that demo account to make mistakes and correct them so that you can know what works for you, to use it as a strategy.
A trading strategy can be formulated from not only technical indicators but also using price action and other concepts which you will learn while reading.
Once you have the knowledge, use it on demo and formulate a trading strategy.
If the strategy proves to work on a demo account, test and back-test it severally to rule out the possibility of mistakes.
If all is well, then it is time to go live and make real money.
Make no mistake. Without a trading strategy that has proven effective on demo, don’t dare go live. Disappointment awaits there.
Use Money Management.
Money management is the secret to protecting your account so that you will still be here tomorrow and the day after to make money.
It doesn’t add up to deposit today and blow the account shortly after, just because you didn’t make use of money management to stay afloat the turbulences of the market.
Fixed Time traders can apply money management strategies such as the Martingale system.
This entails doubling your trade size every time you lose and going back to the original trade size if you win.
Winning trade with double the initial amount not only recovers your lost amount but also grows your account further.
There is a catch here though; because this doubling might as well milk your account dry if you keep losing the trades you take with doubled amounts.
It means you need a solid strategy and enough money for this kind of trading.
Forex traders must ensure they use stop-loss orders and maximize their winning trades as they minimize their losing ones.
Stop-loss orders save your account from depletion because they only expose the percentage of your account you are willing to lose.
If a trade proves to be winning, a trader can choose to ride on such a move to earn maximum profits.
On the contrary, if a trade proves to be losing, you can close it early cutting further losses.
In your reading, you will come across many other money management systems that you can use. Money management is the only way to guard your account against depletion while looking at possible ways to grow it.
Tame Your Emotions.
If you step into the markets with fear, greed, unnecessary confidence, or any other emotions, be sure that you might not emerge profitable.
At some point, whoever is a profitable trader today had to begin being emotionally detached from their trades to attain success.
Acting out of emotions has a way of driving you away from the rules of your trading plan, only to have you finished off.
But how can you ensure your emotions have no input in your trading?
By practice, dear, practice.
You do not become better by just being, but by doing something towards becoming better.
A rolling stone gathers no moss and so is like you.
I am sure that if you set out to become an emotionally detached trader from your trades, you will win with time.
Another way you can shun emotions is by sticking to your trading plan or strategy even on bad days.
If you begin breaking the rules just so that you don’t hurt your account too much, just know that emotions have begun their work in ruining your whole trading career.
To be safe, when these times come, just call it quits and go take a breath.
Have Realistic Goals.
When we asked if you can make money every day from trading, we didn’t specify how much.
So how much is money to you?
Is $5 a day money enough on your terms? What about $50 or $100 a day? How much really, is money to you?
So many questions and all I want you to realize is that your targets, whether daily or weekly or at any other interval you set, must be realistic.
How much balance do you have in your account right now? How much do you want to gain by the end of the day?
If you ask most successful traders, they may actually shock you to tell you that they earn only up to 20% of their account monthly.
Show me what quick money there is in earning a mere 20% of your account monthly. None really, and so that is exactly the point.
Trading is not one of the avenues to make quick money or get rich quickly.
It is a system that rewards patience, mastery, and realistic expectations.
If you target to double your account in a minute by investing all you have in your account in one trade, then blowing the account is a minute away.
Tame your expectations, minimize your account exposure, and employ patience. You will make something, no matter how meager, and such is a step forward.
You need Money to Make Money.
A common saying that is, right?
You need money to make money.
You cannot make money out of the blues. What ready does this saying mean?
I am sometimes shocked by newbies who want to deposit a mere $10 and then want to make $100 on that same day they made the deposit.
What principles are you really applying here?
Gambling and quick money of course, and that is where you might have gone wrong.
If you want to make big money trading, then you need to make a big deposit, holding other factors constant.
Making a big deposit may, however, not guarantee success because you must have met all other conditions stipulated above as well.
Including having the knowledge, a reliable broker, a solid strategy, and emotional, detachment among others.
Whatever you do, just be rational.
A small account will give you equally small gains while a huge one has the potential for huge gains, only if you know what you are doing.
Big accounts also do blow, if the trader knows nothing about trading.
At this point, I will not show any reservations about answering the question. Can you make money every day from trading? Yes and No.
You can make money every day from trading if you meet the above conditions and understand what you are doing.
However, if you break the rules and don’t understand what it is that you are doing trading, you might never make any money.
I would rather be honest, candid, and frank with you, so that you do not make any mistakes.