14 Jul 2021 13:28 IST

Should I quit my job to become a full-time day trader or investor?

Are there any courses, whether distance or regular, that can prepare you to make a fresh start in this field?

I have been working as a mining engineer for the past seven years. In the last 3 years, I have started investing in the security market. I have considered quitting my job and diving into the field of security markets, but I think it's a huge risk. I want to know if there are any courses, whether distance or regular, which can I pursue and make a fresh start in this field. - Chandan Das

Before taking the decision to quit your job and moving in to full-time stock investing or trading, you need to evaluate two factors. One, whether you have sufficient savings to move in to stock markets, full-time. As you may have seen, markets can be very volatile and your entire trading capital can be wiped out by a single wrong trade. Only part of your saving, 5 to 20 per cent, depending on your age, should be set aside for this. Two, you need to understand your risk appetite to decide if you want to do full-time intra-day trading with stock futures and options or want to trade based on fundamental analysis in the cash market.

You will have to choose the course, based on the kind of trading you want to do. For learning the basics of securities market and trading, you can explore courses offered on elearnmarkets.com or National Institute of Financial Market nifm.in. Both offer a wide variety of courses on fundamental and technical analysis, derivative trading and so on, suitable for Indian markets.

Many stock brokers such as Motilal Oswal, Zerodha, and so on, provide lot of information on their websites, aimed at training clients in stock investing and trading. You can also use that material, besides Investopedia and other free resources available on Youtube and the internet.

Finally, stock investing and trading is a skill that cannot be taught in a classroom. After learning the basics, you will have to put it in to practice in real-time conditions. You will be tweaking the trading strategies taught to you, to suit your temperament, to arrive at the trading or investment style that is most suitable to you.

(The expert is Data Editor, The Hindu BusinessLine.)