Trading for a living

Internet, online brokers and leveraged financial instruments have made it possible for regular people to trade for a living. You no longer need to be rich to be able to trade for a living. Anyone can save the money needed to trade for a living as long as they are willing to work hard to get it. As little as USD 10 000 can be enough to make a living as a trader. Some traders stated with even less than that,

The less money you start with the harder it is to succeed and the more risk you have to assume. This is why we recommend that you save up at least USD10 000 before you try to trade for a living.

Is trading for you

Trading for a living is not for everyone. It is not an easy way to make a living and it is not a good choice if you are looking to “get rich quick”. Trading for a living requires a lot of hard work. It takes a lot of effort to learn what you need to know to become a successful trader and it requires even more effort to stay informed about everything that happens in the market. You need to stay informed to remain successful.

Do not try trading for a living if you:

Think it is an easy way to make a living.
Are unwilling to work long hours every day.
Are unable to stick to a trading strategy. Traders to not gamble with their success.
Think you are going to get rich.
Think it is easy to learn how to trade successfully.
Are unable to stay focused on your trading.

You do not have to be a rocket scientist to be able to trade for a living. Most people are smart enough to make a living trading. The real question is not if your smart enough but rather if you are motivated, disciplined and focus enough to become a successful trader. You need to be willing to learn a lot before you start trading if you want to become successful.

You can learn everything you want to know for free online. You just need to be willing to take the time to read and understand all the information you need to learn if you want to trade for a living. This is a good place to start if you want to learn how to trade for a living.

The demo account is your friend

The best tool you have available when you start trading is a demo account. Many brokers offer demo accounts for free. A demo account works exactly like a regular account but allows you to trade with virtual money. You do not have to risk any real money.

The demo account allows you to make all beginners mistakes without losing any money. Everyone makes mistakes while learning and this allows you to minimize the effect of those mistakes.

You should trade using your demo account until you have become skilled enough to consistently make a profit while trading. This does not mean that every trade should produce a profit. Byt you should earn more than you lose each week.

The most common mistakes that new traders do is to start trading for real money too early. Take your time and learn to trade successfully before you start trading using real money.

The demo account will remain a valuable tool once you started trading for real money. It allows you to test new strategies 100% riskfree.

How to Choose the Right Trading Broker

Choosing a trading broker is one of those decisions that can quietly shape your entire experience as a trader. It’s easy to think, “I’ll just use the one everyone talks about,” but the reality is that you need a broker that is suitable for your particlar trading strategy and preferences. How you trade, what you trade, your costs, your speed, your tools, and even your stress levels, are all important factors.

Whether you’re day trading, swing trading, investing long-term, or just getting started, taking a bit of time to pick the right broker will save you time, money, and a whole lot of frustration down the line. It can be the difference between becoming a long-term profitalbe trader and wiping out your account in no time.

You will find reviews of some of the best brokers in the menu. If you want to find information on other brokers then I recommend that you visit Brokerlistings.com. A website that makes it easy to compare brokers and find one that suits you. Below, we will look at a few points that can help you pick a broker that is suitable for you.

Know What You Want to Trade

It is generally not a good idea to sign up with a broker first, and then let whatever that broker is offering determine your trading strategy.

Before comparing brokers and platforms, the first thing to get clear on is what you actually want to trade. Stocks? ETFs? Options? Cryptocurrency? Forex? Something else? Not all brokers give access to the same asset categories, assets, and financial products, and some specialize in specific markets. Develop a basic trading strategy for and make sure the broker is well-equipped for it and provides suitable trading terms and conditions.

Examples:

If you’re trading stocks, you’ll want a broker that supports this, and perhaps also gives you the opportunity to trade stock-focused ETFs.

For cryptocurrecy trading, platforms like Coinbase, Binance, and Kraken are built for digital assets and give you tools specific to that market, like real-time order books and on-chain data for cryptocurrency.

If you’re into forex, going with a broker that will give you access to one or more of the platforms MetaTrader 4, MetaTrader 5 and cTrader is can be a good idea since these platforms are extremely popular among forex traders. They are highly customizable, supports automated trading, and works with a wide rane of forex brokers. Once you have learned how to use one of these platforms, you can switch broker without much pain. (It is not unusual for traders to remain with a broker for way too long, even when they know that broker is no longer optimal for them, because they dread having to adjust to a new trading platform.)

Understand How Brokers Make Their Money

It’s easy to be lured in by flashy “zero commission” offers, but the way a broker structures is more complex than simply commissions. Some brokers remove commissions, but widen the spread between buy and sell prices. Others charge buy and sell commission, but have tighter spreads. Some are just expensive on both accounts and should be avoided.

Once you know how the spreads and commissions will impact your trading strategy, make sure you also take a look at other miscellaneous fees that can impact your bottom line.

Examples:

Overnight fees
Fees to process deposits and/or withdrawal requests
Extra charges to access to specific features
Platform fee
Inactivity fee

The cheapest broker on the internet is not necessarily a good choice, but you do need one where the costs wont erode your trading profits more than what´s reasonable. Because of this, it is very important that brokers are transparent with all the costs and how fees are calculated. Look into the fine print, get a feel for how costs are handled, and make sure you’re not getting nickel-and-dimed in the background.

Regulation

This should go without saying, but it’s often ignored: don’t trust your money to a broker that isn’t regulated by a reputable financial authority. Ideally, choose a broker that’s licensed in your country and adheres to the standards set by the applicable financial authority. In the U.S., that means regulation by the SEC or FINRA. In the UK, it’s the FCA. Within the European Union, you can go with a broker regulated by any of the membership countries.

If you live in a country where online brokers are not regulated, or where the financial authority is known to be lax and not offer much in the way of proper trader protection, you might be better off going with a foreign broker regulated by a reputable financial authority abroad. Just remember, you will be in a more complex situaiton legally, and the foreign authorithy has limited ability to act when something happens to a trader outside their jurisdiction. You will probably not be covered by any governmental schemes that compensate traders when brokers fail to live up to their financial responsabilities.

If a broker makes it hard to find out who owns the company, where they’re based, or what happens if things go wrong—walk away.

When a borker claims to be licensed, always verify with the financial authority. Some fraudsters lie about having an active license.

Safety

A good broker will have systems in place to protect your account, e.g. secure login protocols, encrypted transfers, and fraud monitoring.

Customer Support – Can You Get Help When You Need It?

Even with the best tools, things sometimes go sideways—your funds don’t transfer, you can not log in, or a trade doesn’t execute the way you expected. In those moments, good customer support matters a lot.

Test the support before you commit. Ask a question. See how fast they respond and whether the answer actually helps. If you’re relying on this broker for real money trades, you need to know someone’s there when it counts.

Pick a broker where the support is staffed when you are likely to trade. 24/7 support is ideal, but 24/5 can also work well for forex traders or traders who do not trade during the weekend for other reasons.

Platform Experience

Once you’re up and trading, you’ll be doing it at the trading platform — and you might also be using that platform to gather information, carry out technical analysis, and more. Therefore, it is important that the platform works smoothly, is suitable for your tradings style, and can be depended on.

A clean, responsive interface will save time and energy in situations when it really matters. A platform that is difficult to navigate, buggy and prone to freezing can cost you a lot. You’ll want a platform that balances ease of use with the features you need.

Always test-run the trading platform using a free demo account before you make any first deposit with a broker. Follow your trading strategy and risk-management plan, using play-money, and see how well the platform works. If it feels clunky now, it’ll feel even worse in real time when the market’s moving and you need to act fast.

Tools and Features for Traders

Not every trader needs pro-level analytics, but if you’re timing short-term or medium-term moves, having good tools can make a real difference. You’ll want access to solid charting, technical indicators, and price alerts, which will halpe you set stop-loss orders and limit orders with precision.

Look for brokers and platforms that give you access to what you need without overwhelming you. Good tools should support your decision-making, not get in the way of it. If you’re swing trading, you’ll want access to extended hours, clean charting, and the ability to manage positions without being glued to a screen. The platform should match that rhythm—fast when you need it, but steady and easy to manage between trades. For a day trader, other features can be much more important.

Speed and Execution Reliability

When it comes to trading, speed isn’t just for high-frequency pros. Even as a swing trader, you want your orders executed quickly and accurately. A broker or platform that delays your order—or one whose app freezes during volatile market events—can cost you money.

Look for brokers and platforms known for stable execution and reliability. It’s hard to appreciate this feature until the moment you really need it—like when a trade hits your price level and the system lags. At that point, it’s already too late.

Simplicity vs. Control

Some platforms are made for ease. They’re simple, clean, and perfect if you just want to buy and sell without getting deep into technicals.

Others give you more control and a bigger tool box for analytics. These platforms can let you customize charts, use advanced indicators, and more.

If you’re a beginner, starting with a simpler platform is totally fine. You can always upgrade later as you learn more and need more features. What you don’t want is a platform that’s either too basic for your needs—or so complicated you feel lost every time you open it.

Does The Platform Support the Way You Trade?

If you’re a swing trader, you’ll need different tools than someone who’s scalping every five minutes or someone investing for the next 20 years. Swing traders typically need customizable charting tools, price alerts, stop-loss and limit order types, access to extended-hours trading, and reliable mobile and desktop access. Not every platform checks all those boxes. Some give you killer charting but bad execution. Some are amazing on desktop but weak on mobile. Choosing a platform that works with your trading rhythm is more important than going with what’s most popular.

Is There One Platform That Is Better Than All The Others?

No. It would be very convenient if we could just point all the novice traders in the direction of The Best Platform Online, but there is no such thing. Different strategies calls for different things, and we also have different preferences as traders.

Not all trading platforms are created equal, and which one you should use depends on how you trade, what you trade, how you analyze prices and make decisions, and so on.

The trading platform is your digital workspace. It’s the place where you can analyze the market, place your trades, manage your positions, track your results, learn more about trading, test out new strategies, etcetera.

Some platforms are very sleek and minimalistic, while others come loaded with technical analysis tools, screeners, scanners, educational centres, news feeds, support for copy trading, support for social trading….the list goes on. Some platforms are perfect for investors who want to “buy and hold” with minimal management. Others will give you access to features built for active traders who want detailed charts, real-time scanning, and tight execution. There’s no one-size-fits-all solution, which is why the right broker and platform depends so much on who you are and how you trade. You need one that matches your trading strategy, needs, experience level, and preferences.

Do I Need Multiple Platforms?

If you are using more than one trading strategy (e.g. when it comes to asset choice or time-horizon), it can be better to use several brokers/platforms instead of going with a lukewarm compromise.

There are also traders that use one softeware solutions for analysis, at a stand-alone platform for execution. For example, they might use TradingView for charting and alerts, but place actual trades on Webull or TD Ameritrade. That’s totally fine if you’re comfortable switching between tools, and it can give you the best of both worlds.

Just make sure you don’t overcomplicate your setup, especially when starting out. One good platform you understand is better than juggling three that you barely know how to use.

Prepare to fail

Remember that far from everyone who tries to trade for a living end up being successful. Most people fail. Only about 2 in 10 becomes successful. The odds of you becoming successful are a lot higher if you are willing to work hard, learn as much as possible and stay disciplined. Success is never guaranteed and it is therefore essential to have a plan of what you will do if you fail.

Make sure that you do not lose more money than you can afford. That you do not lose too much money to pay the rent and utilities, Hopefully, you will succeed but take precautions so that you will be okay even if you fail.

Risk Management When Trading: How to Protect Your Capital

If you’re learning to trade, here’s a truth most people figure out after they lose money: it’s not how much you make—it’s how much you keep. And that comes down to risk management.

You can have an excellent trading strategy, but if you don’t manage risk well, one bad trade can wipe out weeks (or months) of progress. Risk management isn’t just about being careful—it’s about being smart. So if you’re serious about becoming a consistently profitable trader, this is really important.

Every trade carries risk. Prices move unexpectedly. News drops overnight. The market turns against you, fast. You can’t control what the market does—but you can control how much damage it can do to your account.

Without proper risk management and emotional discipline, one losing trade can lead to another… and another. That’s how small losses become account blow-ups. The goal isn’t to avoid ever losing any trade – losing now and then is a part of taking risks. The goal is to make sure your losses are small enough that you’re still in the game when the next good setup comes along.

The 2% Rule

A common rule used by many professional traders is to never risk more than 2% of your total account per trade. That means if your account is $1,000, you shouldn’t risk more than $20 on any single trade. This doesn’t mean you can only buy $20 worth of stock—it means the amount you’re willing to lose if the trade doesn’t work out. If you are trading assets where the liquidity is very good, you can use stop-loss orders to limit how much you can lose on a trade. If liquidity is low, stop loss orders are still good to use, but will be less reliable.

Not risking more than 2% per trade keeps your losses manageable and gives you room to keep trading—even after a string of bad trades. It also forces you to be more selective and intentional, instead of throwing money at everything that looks promising.

Stop-Loss Orders

A stop-loss is your safety net. It’s a pre-set level where you exit a trade to limit the damage if it moves against you. It removes emotion and panic from the decision-making process.

Where do you want to place your stop loss order? It depends on your strategy; you can for instance place a stop-loss based on a percentage, a support/resistance level, or a technical indicator. You can also use it to keep your risk to below 2 percent of your total account balance.

The point is: you decide before the trade how much you’re willing to lose—and you stick to it. Do not get emotional later and move your stop-loss further away, hoping the trade will recover. That’s how small losses turn into big ones.

Position Sizing: Get It Right

Position sizing means choosing how many shares, contracts, or coins to buy based on how much you’re risking. It’s one of the most underrated parts of risk management.

Let’s say you’re willing to risk $50 on a trade, and your stop-loss is $5 below your entry. That means you can afford to buy 10 shares (50 ÷ 5 = 10). If the trade goes against you, you lose your planned $50 and no more.

This method helps you keep your risk consistent, no matter what the price of the asset is.

As mentioned above, stop loss orders become less reliable in markets where the liquidity is poor.

Cut Losses Fast, Let Winners Run

This mindset separates traders who survive from those who burn out. Don’t hold on to losers “just in case.” Hope is not a strategy. If a trade hits your stop, exit. No second-guessing. No revenge trading.

At the same time, when a trade goes in your favor, let it work. You can use a trailing stop loss order to lock in profits while still giving the trade room to grow. Over time, the goal is to keep your losses small and let your winners do the heavy lifting.

With that said, take-profit orders can be really helpful if you have a tendency to get greedy keep your positions open way too long – long enough for the price to drop again before you get out. Take-profit orders are also good if you want to leave the screen with positions open.

What is a trailing stop-loss order?

A trailing stop-loss order is a special type of stop-loss order that will move with the market price. It is useful in trending markets, where you don´t want to risk “falling down” all the way to your original stopp-loss if the market takes a turn for the worse.

Not all trading platforms offer trailing stop-loss orders, so if this will be a part of your trading strategy and risk-management plan, it is important to pick the right trading platform.

Trailing stop-loss orders are commonly used on trending markets, rather than choppy ones.

Knowing where to place the trailing stop is cruicial. If you put it too close to the market price, normal price swings that do not constitute a trend reversal will trigger the stopp-loss and close your position. If the stop is placed to far away from the market price, the price will be able to sink quite a lot before the stop-loss is triggered, making it less useful. The best point depends on several factors, including the volatility of the market.

A trailing stop can be set in several different ways, including:

A defined percentage below the current market price.
A specific dollar amount below the current market price.
Traders who are doing technical analysis may for instance put the trailing stop close to a specific moving average, e.g. the eight-day or twenty-day moving average.
The average true range over n number of days multiplied by y number of days. This can be a good way to decrease the risk of the stop-loss being triggered by normal price drops that do not constitute a trend direction change.

Example of how a trailing stop-loss can be used:

You are noticing an upward trend for Company XYZ and you buy when the price is at $100.

You are not willing to lose more than 5% on this deal, so you put the first stop-loss at $95.

The stock price moves up to $110, and you decide you want to use a trailing stop-loss.

You decide to do a percentage-based trailing stop-loss, at 10%.

At this point, a 10% stop-loss is at $99. (Because 10% of $110 is $11, and $110 minus $11 is $99.)

The stock price continues to move upwards, and the trailning stop-loss moves with it. When the stock price is a $120, the trailing stop is at $108. (Because 10% of $120 is $12, and $120 minus $12 is $108.)

The stock price peaks at $140, which puts the stop-loss at $126. It then begins to move down, and the stop-loss is triggered when it reaches $126.

Trailing stop-loss orders will not be as useful on sideways markets, and they are not very popular among swing traders who are (as the name suggests) focusing on the swings of the market rather than identifying strong trends in either direction.

What is a take-profit order?

Just like a stop-loss order, the take-profit order will automatically close a position when a specific price point is reached. While a stop-loss order is placed below the current market price to limit the potential loss, the take-profit order is placed above the current market price to make sure the profit is realized if the price reaches the take-profit point.

Take-profit orders can be useful in several ways:

You can make a decision well in advance, based on your analysis and trading strategy rules, instead of winging it in the moment. You can avoid getting greedy and stay with a position open for too long.
You can leave the screen and know that your profit will be realized if a specific price point is reached. You do not have to live glued to the screen to close positions manually.

Take-profit orders are commonly used by short-term traders who want their positions to close automatically as soon as the pre-defined target is reached, and avoid risking a possible downturn in the market. Traders with longer-term strategies are typically less keen on using take-profit orders, since they are banking on longer-term price trends and rely less on closing a position in the exact right second. For a longer-term trader, a take-profit order can be too much of an opportunity loss.

Avoid Overtrading

More trades don’t automatically mean more profits. Overtrading usually happens when you’re bored, emotional, or chasing losses. The more you trade without a plan, the more likely you are to break your rules and ignore risk.

Stick to your strategy. If there’s no setup that propoerly fits your strategy, stay out. Some of the best trades are the ones you don’t take.

Also learn how to step away and take breaks (sometimes for several days) when you are not in a good position to trade, e.g. because your are ill, intoxicated, or preoccupied.

Understand Your Risk Tolerance

Everyone’s different. Some people can handle big swings without flinching. Others lose sleep over a $50 drawdown. Know your personal comfort level and build your trading around it. If you’re constantly stressed or second-guessing your trades, you’re probably risking too much.

Successful trading isn’t about being fearless—it’s about staying in control.

This article was last updated on: April 14, 2025