Are there people who invest in the stock market full time for a living? In order words, are there people who make thousands of dollars every month, short term, as a profession? If so, how can I find out more information about persuing such a career?
Thank you so much.
For some (like me), it's not a career, it is called retirement.
There are investment advisors who get paid a fee of 1% to 3% of assets for managing other people's assets. Some of them work for mutual funds. There is another type of investment advisor called a hedge fund manager who gets to keep a large fraction of the money he makes for others (or a fixed fee if he or she loses).
Drwls gave you a good answer -- the only careers in the stock market are stock broker and financial analyst.
You may be thinking of day-trading. These people buy and sell stocks by the hour, hoping to make money. However, despite a few tales of wealth made during the late 90s, most day-traders do not make a living at it. Most lose money. A good example is a stock broker I know who is a brilliant man who constantly studies the stock market and companies. If anyone were able to make a living at buying and selling stocks for himself, he would be able to do it. But he earns his living as a broker for a large brokerage firm.
This website has information about day-trading.
Yes, there are people who invest in the stock market full time for a living. These individuals are often referred to as professional traders or investors. They dedicate their time and expertise to analyzing and making investment decisions in the stock market with the goal of generating consistent profits.
To find out more information about pursuing a career in full-time stock market investing, here are a few steps you can take:
1. Educate Yourself: Learn about the fundamentals of investing, different investment strategies, and how the stock market works. There are numerous books, online courses, and resources available that can help you build a strong foundation of knowledge.
2. Develop a Trading Plan: Create a well-defined trading plan that outlines your investment goals, risk tolerance, and strategies. This plan will serve as a roadmap for your trading activities and will help you stay focused and disciplined.
3. Practice with Virtual Trading: Before investing real money, consider practicing with virtual trading platforms. These platforms simulate real market conditions, allowing you to execute trades and track your performance without risking your capital.
4. Gain Experience: Start investing with a small amount of money to gain experience and gradually increase your capital as you become more comfortable and confident. It is essential to learn from both successes and failures to refine your strategies.
5. Network and Learn from Others: Engage with other experienced traders and professionals in the financial industry. Attend conferences, join online forums or communities, and read books written by successful investors. Learning from their experiences can give you valuable insights and strategies.
6. Stay Informed: Keep up-to-date with market news, economic trends, and company developments. This can be done through financial news websites, subscriptions to reputable newsletters, or by following influential investors and analysts on social media platforms.
Remember that full-time stock market investing involves both risks and rewards. It requires dedication, continuous learning, and the ability to adapt to changing market conditions. It is advisable to consult with a financial advisor or investment professional before making any significant investment decisions.
As for the website you mentioned (http://www.sec.gov/investor/pubs/daytips.htm), it provides information about day-trading and the associated risks. Day trading is a specific strategy where individuals buy and sell stocks within the same trading day. It is important to thoroughly understand the risks involved before pursuing this approach.
Please note that investing in the stock market carries inherent risks, and there is no guaranteed method for making consistent profits. It is crucial to conduct thorough research and consult with professionals before making any investment decisions.