- There are several answers to the question regarding why you should learn to trade.
- Trading is basically the most in-demand skill, as it will set you free for the rest of your life.
- This will be possible if you learn it and also give yourself some of the time to trade.
Reasons for learning trading
- There are several reasons regarding why you should learn to trade.
- Some of the most common reasons are discussed here.
The main reasons for learning how to trade are as follows:
Time freedom:
- It is only you who will decide where you wish to invest your time when you are a trader.
- As a full-time trader, you will have a lot of time freedom, which will help you learn how to trade.
- Compared to all the other professions where others will control your time, trading is one of the best professions that will offer you freedom of time.
- In trading, you will not have to sit in front of the trading desk for say 8-10 hours and trade regularly.
- This is because you will do this with your own job most of the time.
- Trading is a skill, and you will get paid for your skill.
- Whereas, in the job, you will get paid for your time.
- It is very important to understand that money will be made by smart work in trading.
- All you need to do here is do some sort of hard work, such as searching for a profitable strategy and back testing.
- Once it is done, your task will be just to follow your strategy and trade with proper discipline.
You are your own boss:
- This is the main reason why several job seekers wish to shift their career to trading.
- In trading, you will be answerable to just your own self and no one else.
- In a job, you will have to report to your boss or the manager, but in trading, you are not supposed to report to anybody.
- In trading, you will be responsible for your own actions, as there is no one to tell you that you are supposed to trade in a particular way.
- This is because you will have to analyze this on your own.
- Trading is the only profession where all your direct actions will decide how profitable you will become.
- On the other hand, you are supposed to self-analyze regularly so as to improve your process and also be honest with yourself.
- In trading, even if you end up making a mistake, you can note that down in your trading journal so that you can remember it the next time.
You can compound your money very quickly:
- Trading is one of the best ways to compound your capital.
- This is subject to the condition if you are doing it in a systematic as well as a planned manner.
- If you consider the return on investments that are given by different assets, such as bank FDs, this will give you a return of 6-7%, whereas equity investing or mutual funds will give you a return of 15-20% annually.
- So, even if you are looking at the best of the assets, they will not give you as many returns as trading will give you if you master the skill of trading.
- Trading is much more risky than investing.
- But profitable trading is all about how you will manage your risk and also generate returns.
- You will be able to double your money if you are a skilled trader and also know how to manage the risk of your capital very well.
Conclusion
So these are the main reasons why you should learn to trade in the stock market.
Frequently Asked Questions (FAQs)
Q1) Why do you think that you should learn trading?
You should learn trading, as it will give you a better understanding of finance.
Q2) Who is the best trading coach in India?
Prashant Raut and Arun Singh Tomar are the best trading coaches in India.
Q3) Why do you want to trade?
The two most common reasons for wanting to trade are to make money or because people find it exciting.
Q4) Is trading a skill or luck?
There is an element of luck at play in the stock market.
Q5) What does trading teach you?
Trading will teach you discipline, risk management, and overall performance.
About Us
Nifty Trading Academy is our academy where we teach you about the stock market as well as technical analysis. We also provide live trading sessions and upload blogs for the same.