Finance News

Day Trading: From Hobby to Profession

Dig around the internet a little and you will find loads of articles claiming that “day trading is more popular than ever”. Since the onset of the corona virus, more and more people are looking for alternative forms of revenue – not only do we have more time at our disposal, but robo-advisors make it easier than ever for newbies to get started.

Democratization and accessibility can be great things, no doubt. Yet, as Annie Nova of CNBC notes, “individual investors do not have the wealth, the time, or temperament to sustain the losses that day trading can bring”. Nor do they have the knowledge. Personally, we think that many individual investors do have the time and temperament to succeed – they only lack the tools and know-how available to financial experts.

In order to take stock trading from a hobby to a profession, we need more than superficial information gleaned from popular news sources, even those with columns dedicated to stock trading. To gain the edge needed for day trading success, it’s rather insider knowledge we are after, that kind of juicy business gossip which can pay dividends.

With the advent of auto and robo-advisor services like The Motley Fool and Betterment, there has also been a rise in specialized, live stock trading news feeds. The beauty of a live news feed dedicated to stock trading is that you receive up-to-the-second, late-breaking news, rumors, and tips about financial releases. With a news service such as Benzinga Pro, traders can cash in on speedy access.

Speed, and Why It Matters

Unless one is an information junkie, the sheer speed of a news source is not usually so paramount. We typically value journalistic integrity, style, and substance over time of delivery. But when it comes to day trading, timeliness is just as important as what a headline says.

While a lot of tools focus on the technical side of stock analysis, we’ve found that those which provide users with real time stories about what’s going on in the financial world are most beneficial to the average day trader. Statistics and stock scanning can only tell us so much, but a story gives a holistic picture.

Day trading success is predicated on knowing when to buy and sell; a live news feed allows the average joe to turn vague hunches into educated guesses through their exclusive stories and timely alerts.

If one has the time and patience, day trading can be more than a pastime; internet technology has given us the means to quantify and qualify the market just like the pros.

Day Trading – How Much Money Do I Need?

There is no definite answer to this question. Annie Nova, in a rather pessimistic tone, says that most investors do not have the capital to sustain day trading, but this is rather misleading.

It really all depends on your goals. As the proverb goes, “the rich get richer”, and this is unfortunately the case with stock trading: but don’t let that deter you! Even a small fortune ($1000-$5,000) wisely invested is better than its languishing in a traditional bank account with little to no return.

Ideally, you want to start out with several thousand dollars. This will give you the room to purchase the stocks you most covet, and, what’s more, wiggle room for initial blunders.

Before you know it, you may turn an exciting hobby into a lucrative profession.

Jeremy Biberdorf

Jeremy Biberdorf is a long time internet marketing professional turned full-time online entrepreneur and blogger. Check out his site modestmoney.com for investing advice and reviews of the best investing platforms such as M1 Finance and SoFi.

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Jeremy Biberdorf

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