Stock market investing has always been very popular because it provides you with a means of making some extra money with very little effort on your part. However if you decide to become a full-time investor, you will often find that it’s very difficult to make profits on a consistent basis.

There are two reasons why many people fail. The first is simply because they are under-capitalized. In other words they don’t really have enough capital to generate a full-time income in the first place.

The fact is that even if you were to match many of the world’s best fund managers and make 20-30% percent profit per year, you would still need at least $100,000 in order to give yourself a reasonable standard of living (with the average wage thought to be around $25,000-$30,000 in the US). Sadly many investors start off with a lot less.

As a result of this, they will often take greater risks in order to try and earn themselves a respectable income, which inevitably leads to disaster in most cases. Investing should be about putting your money into long-term growth stocks that pay decent dividends, not chasing profits in small-cap stocks that could potentially take off in years to come.

The second reason why many people fail is because they do not have the skill to make consistent profits from the stock market. The truth is that any idiot can make money in a bull market when most stocks are on the way upwards, but only a tiny percentage of people are able to do the same when the markets are falling.

Indeed just preserving your capital is a skill in itself when the markets turn bearish. You need to have the foresight to switch your money into safe havens such Levitra Professional as commodities, fixed interest Brand Viagra investments or bonds, for instance, at the first sign of a downturn. Sadly many full-time investors are unable to see the bigger picture and will hold on to stocks in the hope cialis sales online that they will turn around, but the markets are unforgiving.

So to sum up, the message I want to convey is that if you do have aspirations to become a full-time stock market investor, you need to ask yourself two key questions. You need to ask yourself whether you have the skill to make consistent profits in both bull and bear markets and you also need to ask yourself whether you have sufficient capital to make a reasonable amount of money based on returns of say 10-20% per year.

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Category: Finance/Investing
Keywords: shares,stocks,trading,investing,full time investing,investing tips,stock market investing