Trading as a Side Hustle: Hidden Truth To Success (2024)

Engaging in stock trading can be a side hustle, but it comes with risks and challenges. It's essential to consider your risk tolerance, financial goals, and level of knowledge before diving in. While some individuals find success in trading stocks, others may experience losses.

However, let me tell you some secrets,

  • Never trust that stock trading can be an overnight success.
  • If you believe that your money can be doubled overnight, then you must also believe that your money can be lost all at once.
  • This is very true if you use leverage or using derivative products such as options, futures, etc.

Trading as a Side Hustle: Hidden Truth To Success (1)

Is stocks a good side hustle?

If you are investing long term, the a higher possibility that you will be profitable. However, if you choose to be a day trader because you saw influencers showing off their wealth from stock day trading, the studies say that almost 97% of day traders are losing money over time.

So let's check the pros and cons of stock side hustle.

Pros:

  1. Potential for Profit: Successful stock trading can lead to significant profits.
  2. Flexibility: Trading can be done from anywhere with an internet connection, offering flexibility.
  3. Learning Opportunities: It provides a chance to learn about financial markets and investments.

Cons:

  1. Risk of Loss: The stock market is inherently unpredictable, and there's a risk of losing money.
  2. Time-Consuming: Successful trading often requires time for research, analysis, and monitoring.
  3. Stress and Emotional Impact: Market fluctuations can be stressful, and emotional decision-making can lead to poor outcomes.

How to succeed as a stock investor

From our side, it will be better to become a stock investor, the one who buys a good stock and then hold it for a long time. The profit is possibly small. The US market averaged about 10% yearly profit for the last century. That is not 1% each month. Another thing to note is that sometimes you will see a downturn.

Succeeding as a stock investor involves a combination of knowledge, discipline, and a strategic approach. Here are some key tips to help you on your journey:

  1. Education:Continuous Learning: Stay informed about the financial markets, economic trends, and company performance. Explore books, articles, and reputable financial websites to expand your understanding.
  2. Set Clear Goals:Define your financial goals, time horizon, and risk tolerance. This will guide your investment strategy.
  3. Diversification:Spread your investments across different sectors and asset classes to reduce risk. Diversification can help protect your portfolio from the impact of a single event.
  4. Risk Management:Set stop-loss orders to limit potential losses.Only invest money you can afford to lose. Avoid investing with borrowed funds.
  5. Long-Term Perspective:Successful investors often have a long-term mindset. Avoid making impulsive decisions based on short-term market fluctuations.
  6. Research and Analysis:Thoroughly research companies before investing. Understand their financial health, competitive position, and growth prospects. Use fundamental and technical analysis to make informed decisions.
  7. Stay Informed:Keep track of news and events that can impact the financial markets. Stay informed about the companies in which you invest.
  8. Patience:Stock markets can be volatile. Be patient and avoid making emotional decisions during market fluctuations.
  9. Regular Review:Periodically review your portfolio to ensure it aligns with your goals. Make adjustments as needed.
  10. Professional Advice:Consider seeking advice from financial professionals or utilizing robo-advisors for automated guidance.

Is there any good stock trading course

If you are insisting on being a stock trader, then you may need to learn it. First of all, I suggest you learn stock trading fundamentals before throwing your money into an expensive course. I would suggest you learn the stock market from Khan Academy. They are making their video free using donation, so they almost do not have any other hidden agenda.

Below is the table of comparison, of course, referenced from Investopedia

Trading as a Side Hustle: Hidden Truth To Success (2)

Best Overall: Investors Underground

  • Cost: $997+
  • Pros: Well-established with a solid reputation, large and active chat room, access to mentors, and comprehensive educational path.
  • Cons: Pricing on the high end, trading courses sold separately.

Best for Beginners: Udemy

  • Cost: $49.99
  • Pros: Low prices, comprehensive courses, extensive course selection.
  • Cons: No opportunity for practical application, no chat rooms, no coaching.

Best Value: Bullish Bears

  • Cost: Free courses; $47/month or $247/year membership
  • Pros: Courses on various topics, affordable memberships with live trade room access, trade alerts, and more.
  • Cons: No free trial, no refunds.

Best for Technical Analysis: Skillshare

Recommended next reads

2022 Aim: Book of the month-"Rich Dad Poor Dad" by… Aishwarya Sonwalkar 1 year ago
The Movement of Investing Era Charanpal Singh 3 months ago
The Science of Developing the Investor in Yourself Lola Mukhtorova 1 month ago

  • Cost: $167.88 per year
  • Pros: Nearly 7 hours of content, learn about a wide variety of chart patterns, high ratings from students.
  • Cons: No trade room or live instructor, can't buy individual classes, must maintain Skillshare membership to access the course.

Best for Day Traders: Bear Bull Traders

  • Cost: $99+ monthly
  • Pros: Extensive library of videos, professional trading simulator, helpful trader community.
  • Cons: Webinars are only available to annual subscribers, a 7-day trial membership is not free.

Best for Live Training: Bulls on Wall Street

  • Cost: $199/month or $1,499/year
  • Pros: An established company with a solid reputation, personalized training, and access to a trading simulator with mentor feedback.
  • Cons: No trial membership available.

Best for University Education: Coursera

  • Cost: Free (basic membership required)
  • Pros: Highly rated course and instructor, high-level analysis of markets, pricing, and valuation.
  • Cons: Relatively little video instruction, no instructor interaction.

Best for Emerging/Alternative Markets: Financial Edge

  • Cost: $99
  • Pros: Direct instructor help, CPD-certified course, lifetime access.
  • Cons: No practical exercises, somewhat short.

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Trading as a Side Hustle: Hidden Truth To Success (2024)

FAQs

Trading as a Side Hustle: Hidden Truth To Success? ›

Engaging in stock trading can be a side hustle, but it comes with risks and challenges. It's essential to consider your risk tolerance, financial goals, and level of knowledge before diving in. While some individuals find success in trading stocks, others may experience losses.

Is trading worth it as a side hustle? ›

Trading can be a perfect side hustle for many but before you invest your hard earned cash it's worth learning from this trading for beginners guide. However, with the surge in interest towards trading, it's important to do your own research.

What is the harsh truth about trading? ›

The harsh truth is that 95% of traders lose money in the stock market. Surprisingly, these are retail traders. The 4% of the successful 5% are proprietary trading firms, big traders and insider traders ( so only 1% retail traders actually make money trading in stocks, consistently).

Did anyone become rich by trading? ›

Many people have made millions just by day trading. Some examples are Ross Cameron, Brett N. Steenbarger, etc. But the important thing about day trading is that only a few can make money out of day trading and the rest end up losing their entire capital in day trading.

What is the secret of successful trading? ›

Success in trading is intrinsically linked to emotional control. Almost 90% of this success depends on managing emotions during market fluctuations. Patience, discipline, and objectivity are essential for making accurate decisions.

Can you start day trading with $1000? ›

Believe it or not, you can start forex day trading with $1,000 or even less. It requires mastering position sizing and managing risks, but if you navigate your way to success, the rewards can be significant.

How much money do day traders with $10,000 accounts make per day on average? ›

Assuming they make ten trades per day and taking into account the success/failure ratio, this hypothetical day trader can anticipate earning approximately $525 and only risking a loss of about $300 each day. This results in a sizeable net gain of $225 per day.

What is the number one mistake traders make? ›

Studies show that the number one mistake that losing traders make is not getting the balance right between risk and reward. Many let a losing trade continue in the hope that the market will reverse and turn that loss into a profit.

Why do so many people fail at trading? ›

Not having and not following a trading plan is a big reason most traders fail. People without a plan are making an assumption that they are smarter than people who do this for a living, and therefore they don't need to prepare, plan, or practice.

What's the hardest mistake to avoid while trading? ›

Biggest trading mistakes and how to avoid them
  • Over-reliance on software. ...
  • Failing to cut losses. ...
  • Overexposing a position. ...
  • Overdiversifying a portfolio too quickly. ...
  • Not understanding leverage. ...
  • Not understanding the risk-reward ratio. ...
  • Overconfidence after a profit. ...
  • Letting emotions impair decision making.

What is the most profitable trade ever? ›

For example... George Soros and Stanley Druckenmiller famously broke the Bank of England by shorting the pound in 1992. The day is known as Black Wednesday and the trade not only netted the pair a fortune (around $1 billion) but wrote them into folklore.

Which type of trading is most profitable? ›

The defining feature of day trading is that traders do not hold positions overnight; instead, they seek to profit from short-term price movements occurring during the trading session.It can be considered one of the most profitable trading methods available to investors.

What percentage of traders succeed? ›

Around 1% – 20% of traders earn a profitable margin at the end of the day. The low success rate often discourages the newbies who learn new ways from an online course or television. Studies have shown that around 97% of day traders have lost their money in two years.

What is the most profitable trading strategy of all time? ›

Three most profitable Forex trading strategies
  1. Scalping strategy “Bali” This strategy is quite popular, at least, you can find its description on many trading websites. ...
  2. Candlestick strategy “Fight the tiger” ...
  3. “Profit Parabolic” trading strategy based on a Moving Average.
Jan 19, 2024

Why I am not successful in trading? ›

Poor Risk and Money Management: Traders should put as much focus on risk management as they do on developing strategy. Some naive individuals will trade without protection and abstain from using stop losses and similar tactics in fear of being stopped out too early.

What is the trick for trading? ›

By setting clear entry and exit points before initiating a trade, you commit to a plan that mitigates the risk of emotional trading. This strategy involves conducting thorough research to identify potential buy and sell points based on historical data, technical indicators, and market analysis.

Can you become rich off trading? ›

Yes, you can get rich off stocks. Investing in the stock market is a proven way to build wealth but it involves things like consistently investing, not selling during market volatility, and holding stocks for the long term.

Can you realistically make money trading? ›

It is possible to earn money with day trading and make a living from it and generate high income - but the chances are extremely low. A maximum of three percent of all traders achieve long-term profits; the vast majority lose large sums of money.

Is trading actually profitable? ›

The overwhelming majority of day traders lose money. While a select few are able to generate steady profits, these are generally people who had careers in the financial industry or who have devoted themselves to studying markets. Successful day traders apply themselves to the practice as a full-time job.

How much do day traders make? ›

The average income of a day trader varies widely, depending on factors like experience, strategy, and market conditions. While some traders can make over $100,000 per year, many others struggle to break even.

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