One of the first questions that people generally ask when considering trading is, “Why do it?” Trading involves a lot of risk with no guarantees, so it’s definitely not for everyone. When we talk to our traders about why they chose to pursue the trading path, these are the top five answers they usually give:
1. Freedom from the rat race
Some people like the structure of a “nine-to-five” environment and the security of a monthly pay cheque. For that, many people are willing to sacrifice their freedom. For others, working for someone else, plus the daily commute and rigid working hours, is too high a price to pay. The possibility of financial freedom gives them all the incentive they need to choose trading.
2. Work-life balance
Many people pursue the trading path to get a better work-life balance. For them, the idea of being able to make enough money to live on by spending just an hour a day trading is highly attractive, as it offers them the opportunity to spend the rest of their time with their family, or pursuing interests that thoroughly fulfil them. As long as you have an Internet connection and a computer, tablet or smart phone, you can trade from anywhere in the world. People who love to travel love to trade to finance their goals.
3. UK Tax-Free Profits
Many traders cite the opportunity to make tax-free* earnings as their greatest incentive. Even though trading is most definitely not gambling (it is betting with calculated risk management), when you trade using spread betting your profits are considered “winnings” and are thus tax free*.
4. Life Skills
Trading skills are skills for life. Once you’ve learnt how to trade, you can do it whenever and wherever you want. Yes, you always have to work on your discipline, and maybe you’ll want to try out new strategies from time to time, but the core techniques will never change.
5. You can do it
Our favourite reason people give for taking up trading is directly in line with Lee’s motto, “If I can do it, anyone can do it.” Many people tell us that they were attracted to trading precisely because they did not need any academic qualifications to do it. All they needed was the money to pay for their education and to open a trading account, and then it was all up to them. This empowers people who have previously felt like they can’t catch a break in life.
Do these reasons match yours? Are there any other specific reasons you’d give for why you decided to trade that we haven’t covered here? Let us know. We’d love to hear your comments.