Living by Trading: Is it Possible? How To, Benefits & Risks

Digital technology and the web have offered the possibility to operate on the market to a wider number of investors in trading. All you need is a computer, an internet line and registration with a broker to start investing. Is it possible to make a living from online trading? A question that all small and medium traders have asked themselves. Below we are going to answer this question by analyzing how trading works, what are the best investments and strategies to put in place.

How Trading Works

With online trading we identify the buying and selling of financial securities independently, using a specific platform made available by a broker. Its operation is simple and direct. In fact, you will have a software, the trading platform, through which you will be able to have all the necessary tools to operate on the market in a professional way. These include the list of individual financial products on the markets, their real-time quotes, charts and indicators, fundamental analysis and the order entry system.

To access a platform, all that is required is to activate an account with a certified broker. A process that takes a few minutes and can be done either from the computer, or from an app where applicable. Once completed it will be enough to pay a minimum amount to activate the account and start investing. 

Is it possible to live of trading?

We immediately answer this question in a positive way, although we must not forget the risks associated with this activity. In fact, online trading today can be considered a job in its own right, offering several opportunities to earn money.

However, in order to make a living from trading, it is necessary to approach this activity with attention, the right skills and a precise strategy. Trading on the market is not easy, as you will have to consider a number of factors that affect the growth or contraction of a stock.

In order to make a living from trading, one must aim at diversifying one’s portfolio, maintaining a certain amount of liquidity necessary for daily operations, and at the same time investing in financial products that can offer a return even in the moment of market crisis. In this way you will be able to aim to have constant income. 

The Best Investments for a Stable Income 

Creating a stable income is the basis of any strategy that aims to obtain periodic income useful to live trading. In fact, if you have a constant monthly income, you will be able to face the market with serenity and above all without feeling the pressure of having to make a certain number of daily operations. In this perspective, it becomes essential to choose carefully where to invest and how to balance your portfolio. Below here are some of the possible solutions, among those most popular with traders.

Real Estate Trading

The real estate market offers several opportunities to invest your money and, thanks to crowdfunding platforms, it will be possible to operate even with reduced capital. In particular, you will have the opportunity to use your money to finance a real estate project and obtain a fixed return in proportion to the amount invested.


Commodities trading can be a valuable opportunity to invest money and earn a high return. One example is safe haven assets such as gold. The annual return is constant and therefore allows you to diversify your portfolio. In addition, the large number of commodities allows you to diversify your investments.


Trading on stocks can be a good solution to obtain constant income. The choice is wide, since you can bet on the trends of the moment or on hi-tech stocks. In order to diversify the investments it is useful to insert in the own portfolio also of the Stocks that in the time maintain constant yields. In this circumstance, the drawer shares of both the American and Italian stock exchanges can be useful.

Stock indices

Stock market indices are financial products composed of a basket of securities that determine their trend. This allows to obtain several advantages in the operativity. In fact, it will be possible to operate with CFDs investing both in moments of growth and in phases of contraction. Furthermore, there is a variable risk depending on the type of index.


Constant returns and the possibility of investing reduced capital are some of the characteristics of ETFs. Exchange Traded Funds are financial products that replicate a precise asset, such as an index or another fund. The replication can be physical, and therefore reproduce the performance of an entire basket of securities, or synthetic, in which case the ETF will refer only to a certain number of securities. Thanks to their composition, these funds usually provide a high return in the medium and long term, although obviously not guaranteed. They allow you to have low risk investments and constant returns.

Forex Trading

The currency market is among the most liquid in the world and allows you to operate 6 days a week, investing in a large number of currencies and with the opportunity to trade on margin. In addition, you can invest using leveraged CFDs on all the best trading platforms. The opportunities to expand your stock portfolio are many, as you can invest in the most popular currencies.


Digital currencies can also be a valid form of investment to make a living from trading. In fact, their characteristics make them instruments that are not subject to normal market trends. Moreover, they are subject to wide volatility, very useful if you want to operate with intraday strategies or scalping and with reduced capital. In addition, there are thousands of digital currencies in existence today. In features that you can integrate into your portfolio.


If you want to make a living from trading, it will be useful to pay attention to the type of strategy you have to adopt. This term identifies the set of activities useful to achieve an indeterminate purpose: to obtain an income. First of all it is necessary to fix a budget, which will not have to be high, but in proportion to your investment capacity and the results to be obtained.

Another aspect to be taken into account is the fact that, like all work activities, to do trading you must be committed and carefully study the operations you are going to do. It is then necessary to evaluate the type of tools you are going to use, such as the demo account, to test the strategies safely and without risks, and the analysis of charts, essential to evaluate the trend of an asset over time and identify the correct form of investment.

Visited 1 times, 1 visit(s) today