Thinking of trading as a side-hustle or a full-time job in 2026?
Whether youâre working from home or in between jobs, itâs definitely possible to earn extra income from trading.
But before you jump headfirst and put your hard-earned money on the line, you have to remember that what sets consistently profitable traders apart from those who drain their capital quickly is that they treat trading as a business.Â
Having a business mindset means that you put in the work to create a business plan, make sure that itâs properly funded, track your performance, stay mindful of costs, and work on improvements.
Hereâs a quick checklist of things you need to get started:
1. Pick your market
While there are plenty of advantages of trading forex versus stocks or futures, donât forget that there are other types of markets that might also work out for you.
Iâm sure youâve heard of cryptocurrencies, commodities, indices, CFDs, or options trading, which are pretty interesting and exciting in their own right.
Just ensure you conduct thorough research to understand the factors that drive each market, the active trading hours, and the associated risks.
2. Define your trading strategy
Once youâve decided which market suits your preferences, itâs time to work on your actual strategy.
Of course, weâre assuming youâve already read up on trading tools and indicators that youâll be working with!
If you plan to trade multiple markets, itâs helpful to develop various strategies tailored to each one. These are typically born out of a lot of trial and error, so make sure youâre ready to do the grunt work.
3. Identify your risk parameters
As emphasized in a lot of my trading psychology articles, risk management is key to surviving the trading game.
Itâs not enough to simply define your entry and exit parameters for each trade. What keeps you profitable in the long-run is how you manage your capital and make sure you can live to trade another day, even if you suffer a string of losses.
4. Set up your workstation properly
If youâre working and trading from home, you probably know how distractions can come in the form of a dog barking, music blaring, or a comfy couch and TV.
Other challenges for home-based traders include getting reliable internet connectivity, adjusting to time zone differences, and having the proper trading equipment.
In order to stay in the zone, you need to set up a proper trading workstation that ensures you are able to stay focused. After all, the markets can move reaaally quickly, and the last thing you want when youâre scalping is to get distracted!
5. Choose your broker
Choosing a broker that you will trust to execute your trades properly is a crucial decision. You donât want to fall victim to a scam, do you?
These days, thereâs no shortage of reviews on most brokers, so thereâs no excuse to slack off on your due diligence.
Once youâve narrowed down your choices, open a demo for each and familiarize yourself with their trading platform before opening a live account.
6. Work on your trading psychology
Ahh, my favorite part!
Much has been said about staying on top of your emotions and having ice in your veins as a trader, and hereâs where trading psychology comes in play.
Being aware of cognitive and personal biases helps you stay cool as a cucumber under pressure. This comes in handy when trading top-tier news events or when deciding to press your wins and cut your losses.
Now, this comes with a lot of practice and experience, so donât beat yourself up over dealing with fear and greed now and then. It happens to the best of us!
7. Know your costs
Itâs not exactly the most exciting part of trading, but you definitely need to track related expenses (i.e. your trading equipment, paid courses, electricity, and internet upgrades) and also pay the right taxes.
Treat trading as a business, remember?
Taxes can get really tricky and dependent on your jurisdiction, but you probably want to avoid penalties, so make sure you consult with professionals when in doubt.
8. Keep track of your performance
Aside from keeping track of trading-related expenses, itâs also important to maintain a record of your performance through a detailed trading journal.
Weâve got a whole section on keeping a proper trading journal, including five essential components to make it more effective when it comes to developing your trading strategy.
9. Stay informed
âThe only thing constant is change.â â Heraclitus
Wise words from a wise man indeed, and it rings particularly true in financial markets.
One moment you might think youâve gotten the hang of trading and are completely in sync with the markets, but the next moment you can get surprised and whipsawed by a black swan event!
Staying on top of economic and political news is a must, whether youâre day trading or keeping long-term positions open.
The ever-changing dynamic of financial markets is also a good reminder to stay informed and to never stop learning. It never hurts to have a few extra trading tools and methods in your arsenal that you can put to use when the market environment shifts.
10. Make adjustments if needed
In line with the earlier point, itâs also important to be on your toes and flexible enough to adjust as needed.
What drives price action today, this week, or this year might be different next year, next week, and even tomorrow. Take 2020 as an example!
Being a flexible trader doesnât mean changing your strategies at the first sign of trouble.
It can come in the form of simple things like adapting your entries and exits to a pairâs volatility or shifting from a trend-following to range-bound system when the market environment calls for it.
