In this question, I will only deal with people who want to trade for their own account. It is obvious that it is possible to live professionally from trading as an employee.
What does it mean to live from trading?
Living on own account trading means that the gains made are much higher than the losses and that the net profit, once you have withdrawn the taxes, allows you to provide for all your needs. And yes, trading is subject to high taxes as soon as you earn €1. It is taxed on income tax, so the rate will be directly linked to your tax bracket. To this income tax, we must add the CSG, the CRDS and social security contributions (15.5% in total).
How much do you expect to earn in trading?
It should be noted that an average trader earns about 0.5% of his capital each day. That is 50€ per day with a capital of 10 000 €. That’s about 1000€ per month once the taxes are withdrawn.
Some advice before you start….
Before embarking on such an adventure, all interested people practiced as amateurs in the evenings and on weekends.
I still think it is important to follow a training course for traders. Even if it is short (6 months minimum are necessary), it will bring you a lot and especially will avoid you to lose all your capital in no time because of mistakes that you could not suspect by playing for little money. The best training is provided by trainers who also trade on their own account since they do not have the same profession as institutional traders.
Then you have to learn to control your emotions. This is a subject that regularly comes up at trading conferences, which shows the importance it has in our field. You must not let your own emotions (the fear of losing that will make you sell a stock when you may have won, the desire to earn more and finally you sell too late…) take over your logic, over the objectivity of the situation.
Finally, if you can get the idea accepted by those around you who think you are going to lose yourself and your family, then you will have the support you need to go far.
But be careful:
- bet only what you are able to lose, i.e. bet capital that will not embarrass you if you lose it
- control your emotions and trade objectively
- don’t start until you are really trained in trading techniques
- follow daily financial information sites to make sure you don’t miss an opportunity
So, yes, you can live from trading but be careful not to become addicted to trading.