Trading stocks can give you an opportunity to become an expert on financial markets while making a profit at the same time. But how much money can you really make?First things first. Trading means understanding market cycles and different types of assets, like stocks and bonds. Day trading, which is basically buying and selling stock on the same day, or even several times in a single day, can be even riskier business.
The richest traders in the world are worth billions of dollars, as shown by this infographic. Consider James Harris Simons, who’s worth a whopping $18.5 billion dollars.
While it sounds great to sit at a computer and make money with a few clicks, trading isn’t easy, and doing this for a long period of time can be difficult. If you’re not sure what you’re doing, it’s not worth it.. Trade impulsively and you could be looking at some serious money issues.
If you want to dip your toes in the markets without losing your whole paycheck in the process, make sure you do your homework first: Follow some financial market veterans, stay posted on the news, and analyze the companies you’re investing in.
In the end, trading is about ability and experience rather than luck, so be aware of the risks before you jump in. But once you get the hang of it, you could make some extra cash.