This section was created to respond as simply as possible to the question,
can you make a living out of trading?
Who approaches the world of trading, thinks he/she has found a way to get rich without having to work and to be able to generate money from anywhere in the world. By surfing the Internet, there are millions of sites that will sell you a chance to learn the profession of trading, perhaps promising to turn you into a money machine. Trading means buying a financial instrument (share, derivative, bond) in time t at a price of x and then resell it at time t + 1 at a price y (or in the case of short sell and then buy back operations). Anyway in case operation of purchase, if the price y is more than the price of x you have generated money. The tools that a trader can use to predict the future trend of the price of a financial asset are Fundamental analysis and Technical analysis.
– Fundamental Analysis is based on the study of the fundamentals of the instrument analyzed, in the case of shares, they will look at the balance sheets and the income statement, in the case of a currency you will look at the economic factors of the country. Trying to evaluate the price of the goods on the basis of its economic value. But of course studying the fundamental current value, even if you are good, you can assess what is the value of the property to date, but to know what the value of the property is tomorrow, you should study the fundamental future. No one knows the future. So here we come to the first conclusion, fundamental analysis does not give you certainty of forecasting the future price of an asset.
–Technical Analysis is the study of price charts, then the theory that tries to predict the future trend of the price of an asset quoted (real or financial), studying the chart and the trend. You can know more about reading the course of technical analysis. It is based on the principle that prices affect everything, including information of a fundamental nature. Technical analysis is not perfect and absolutely does not assure price forecasting. Second conclusion, technical analysis does not give you certainty of prediction of the price of an asset. So it appears that you can not have certainty to predict the future price of a financial instrument. Live trading, now let us reflect on the word “live”. To “live” is to be able to meet periodically in fixed and variable cost data from mortgage, bills, feed our family and if, unexpected bills etc.
Imagine the aspiring trader possesses a capital of 30,000, can you be sure you could every month with trading activity, gain an 'entry sets’ that will allow to cope with the outputs? Because of the nature of trading, Absolutely no different if you have a capital of 500,000 and you are a professional.
However we think, once the capital you are willing to risk is being defined, through trading you can build an extra income. From our experience we can say that the best results come from 'simultaneous use of technical analysis, macroeconomic analysis-fundamental and quantitative analysis (using mathematical models).