Depending on your goals, investing can become a part-time, full-time job opportunity or simply a way to generate additional income.
The profession of stock market investor has often been seen as difficult to achieve. But in today’s economy, it’s more common than you might think. With sufficient willpower, patience and a desire for knowledge, it is possible to become an experienced investor.
Part-time investor
Since the global markets are interconnected, you will always have the opportunity to invest anytime, anywhere. This means that it is also possible to invest for those with another career or children.
In this scenario, you may feel less of the pressure this job brings, considering that you are not completely dependent on your job as an investor, but are only looking to generate additional income. The first step, should you choose to become a part-time investor, is to decide what you want to invest your money in. This decision must be made based on the goals you have previously set.
Next, you need to come up with an investment plan - which is similar to a business plan - and develop your own strategies.
Finally, search and compare the different online brokers and choose the one whose services are suitable for you.
XTB offers you, for example, the possibility of accessing a wide range of financial instruments, through a highly performing online trading platform, constantly updated. Through this broker, you can take advantage of quality educational materials to continuously improve your knowledge of financial markets.
The emotional side plays an essential role in stock exchange investment, perhaps more than one might think at first glance. Keeping your ego under control is an important trait of an investor. It is important to know when to stop. Even for the most successful investors, a sizeable percentage of deals are generally doomed to bankruptcy.
Especially if you are a novice investor, it is extremely important not to get irrationally stuck on trades that didn’t work and learn from your mistakes.
Full time investor
If you are strongly passionate about this field, the idea of becoming a full-time investor may seem tempting. However, you must keep in mind that you will no longer be able to treat this business as a hobby, which you can do in your spare time, because all your income will depend on it.
This status should primarily imply the definition of a clear strategy. Once you’ve made up your mind, act according to the plan, whatever it is. Some investors, in fact, make the mistake of not sticking to their strategy if they see that it is not paying off right now. The “optimal” strategy, for most investors, is to have at least 60% of their funds are in stable assets that provide the desired return. This provides a safety net when things go wrong.
Also, you should have some fairly advanced money management skills and constantly invest in yourself as a person.
Plus, you can’t become a successful investor overnight - read and document constantly. Keep testing your ideas regularly. Try training programs to better understand the fundamentals and techniques, and the list goes on. Moral of the story: You really have to invest in yourself!
Be careful, investing is not just a full-time job, but an extremely risky activity in which the probability of loss is greater than the possibility of earning and you must position yourself accordingly. When investing your money there is always the possibility of losing your capital: this is why it is important to have in-depth training on the financial markets and to define the level of risk that you are willing to take, trying to minimize it with a strategy and diversifying your portfolio.
It is advisable to become a full-time investor only if you are confident in your financial and cognitive resources. If you still have doubts about your ability to adapt to the new status, it may be best to keep your investments only in the hobby phase.
Other ways to generate profit as an investor
To generate additional income, you can resort to many other solutions.
- Try to develop your knowledge within higher education institutions.
- Create your own blog or contribute to a registered market and investment blog.
- Organize seminars to share your experiences with novice investors.
All of these are not just monetization opportunities, but good networking opportunities as well. Not only will you use your free time productively, but you will grow professionally.
Consider the risks
Any opinion, research, analysis, pricing or other information provided under the title of general market commentary does not constitute investment advice. Please note that historical information or research does not guarantee future performance or results.
Original article published on Money.it Italy 2022-11-02 10:35:00.
Original title: Come trasformare gli investimenti in borsa in un lavoro?
