Can anyone be a trader?

Yes, anyone can be a trader. Anyone with a little money and patience can become a trader. However, not everyone can be a successful trader. The skill and patience required to become a profitable trader require limiting losses while identifying good trade setups with a positive risk: reward set up.

Successful traders have a combination of knowledge, skills, and traits, as well as a commitment to a lifestyle. A trader needs to be prepared to devote time to self-learn and be mentally prepared to take risks and suffer losses.

Some questions to ask yourself before getting into trading:

• Are you adept with mathematical analysis?

• What is your understanding of financial knowledge?

• How self-aware are you of your behavior?

• Do you have the mind to stomach the uncertainty of it all?

A trader must also have a sufficient cushion of capital. It's recommended to have at least $100,000 for trading. However, novices can start with smaller amounts, depending upon their selected trading plan, the frequency of trading, and other costs they bear.

In the past, to actively day trade required that you maintain a balance of $25,000 in your trading account. However, many apps such as Robinhood and STASH allow you to day trade without the need for that much upfront capital ($5,000 or more).