Day trading sounds like one of those really daunting financial dealings only professionals understand, and yet, you may have friends or colleagues who are not pro financiers but nevertheless rave about making money by day trading. If you are thinking about joining in, possibly as a side gig, you may wonder whether your academic background in social studies or art could be a detriment. To put it simply, no. You don’t technically need a finance degree to become a successful day trader. In fact, day traders come from a variety of backgrounds, especially in sales and marketing. If you don’t know what quantitative easing is (an economic term), then don’t worry. Most day traders haven’t heard of it either. Try not to have unrealistic expectations as a day trader. That is to say, don’t expect to make thousands of dollars right away. You will need some experience before you can actually call yourself a professional day trader.
A Degree is Only Complementary
It’s important to understand that there are two types of day traders. Some traders are primarily investors, but others act as stockbrokers and consultants as well. If you plan on offering some type of brokering or financial advisory services to others, then you need a license to do so. Obtaining this license does require a degree, but if you are the most common type of day trader who just wants to buy and sell penny stocks as a personal investment strategy, then you don’t need to register with any agency. You are essentially a free agent serving yourself, and thus, no degree is required. It’s worth mentioning that a finance or a math degree can actually complement day trading. It will be much easier to jump in and understand what you are actually doing and which penny stocks to buy. In other words, you don’t require a finance degree to become a day trader, but having one can be helpful.
Day Trading Without a Degree
If you have little to no financial background, you can still learn what you need to online. Do keep in mind that there may be some terms that might confuse you if you don’t have a degree in finance. Succeeding as a day trader will require you to sit down and learn these things. Expect to do a lot of reading, especially the news, blogs, and similar material. Even if you do have a degree, you will still have to keep yourself well-informed. Remember, most of the skills you need as a day trader aren’t taught in school.
What It Really Takes
Regardless of whether you have a finance degree or not, day trading is not easy. It’s not a mindless activity where you can make a small bet and wait for it to mature. Don’t ever confuse day trading with gambling. Becoming a day trader might take up a lot of your time. Expect to spend the weekends reading or taking short online courses. It will be difficult at first for complete newbies, but overtime, you will learn what you need to do to succeed in this sector.