When wanting to increase your capital via the financial markets, you can choose to invest or speculate (what is commonly known as “trading”). Both approaches are not necessarily polar opposite, they actually have a few similarities. For instance, both share the same cold and concrete goal of increasing one’s capital and making a profit.
Investing in the stock market has never been so popular. Companies such as Amazon and Tesla perform so well that many believe investing in the stock market is easily profitable. For instance, investing £100 in these companies in 2019 would have yielded a 700% return in 2020. The truth is that investing in the stock market only seems easy in hindsight. It is actually a profession in its own right, and requires knowledge, strategy, money, patience and luck. This is why the wealthy usually delegate the management of their portfolio to professionals.
Before embarking on the adventure that is personal trading and trying to live off it, one must ask oneself the following questions (and answer them clearly, preferably): What does becoming a self-employed trader mean? What does living off trading mean?