Many people think that to become a full-time trader, you have to live on the poverty line while trading your days away, but this is not true. You can make enough money from day trading where you can live comfortably.
Get a job in Japan that has good pay
How much money you make will depend on how much time you spend working versus actively trading, but it is rare for someone who works full-time to take over 12 months before becoming profitable.
One important thing is if your main goal is to get rich quickly and are not really into doing what it takes, then trade forex or CFDs instead. It’s easy and fast money with far less work than stock trading and much less chance for you to lose your shirt.
Set up and test a stock market simulator
No matter what kind of trader you are, it is essential that you know the mechanics of the markets you plan to trade in before actually trading them live. You will also need experience in live trading to succeed when trading actual money.
If not, then stick with paper-trading (simulation). I recommend simulating the US markets like NASDAQ, NYSE, and AMEX until you get used to trading stocks and how market orders work.
Once comfortable, move on to simulating foreign markets such as LSE or Euronext Paris too so that later on, when choosing where and what market you will trade on, you will have a better idea of what to look out for.
Decide on your stock trading style and where to do it
There is more than one way to become a full-time trader in the US, but I want to focus here on two main approaches that give the most possibilities in finding profitable trades and making easy money fast.
The first is day trading stocks, while the second is swing trading them. Day traders often use technical analysis and scalp profits from small price movements throughout the day. In contrast, swing traders try to find large swings with high percentage gains over several days or weeks using only fundamental analysis (researching companies).
Here is my advice, if you can make at least $10,000 a month from day trading stocks (about $300 a day) and you don’t mind taking risks, then go for it. It’s the quickest way to become a full-time trader, though not necessarily the easiest.
On the other hand, if you can make about $30,000 a month (about $1,000 a day) and wait for more giant swings, then I recommend swing trading instead. Significant gains like this take time and patience, so be prepared to wait months for them while daily gains are usually small and fleeting.
Open a stock brokerage account(s).
You will need at least one account with discount brokers such as Interactive Brokers or Redleaf for both trading styles. There are cheaper alternatives but never use an ordinary bank to trade stock because their commissions are unreasonably high. Interactive Brokers is the cheapest broker I recommend, but Redleaf charges no commission at all, so it’s your choice.
Start trading!
Either you can invest in only one company that you believe will go up or buy several different stocks that all look like they have great potential for profitable swing trades. Either way, though, when it comes down to it, each company’s performance is what determines how well you do as a full-time trader.
So choose when deciding on which companies to invest in, make sure they are solid businesses with good prospects and not scams. It doesn’t matter what you trade-in as long as it is a liquid stock and it goes up in price.
Bottom line
Make sure you enjoy trading and continue doing so for years. Unless this is your full-time job and you plan to do it for years and years, It’s recommended to get involved with social trading instead of becoming a full-time stock trader.
Find more info on trading in Japan here.