Do people in the UK actually make consistent income from trading or is it mostly just a side thing?
Posted by Ethan_brooks8225@reddit | AskUK | View on Reddit | 53 comments
I keep seeing a lot of content online about people making money through trading, but also just as many saying it’s very risky or not sustainable.
I’m curious how it actually is in the UK do people treat it as a serious income source, or more like a side thing?
ukbot-nicolabot@reddit
Your post from /r/AskUK has been removed by a human moderator.
AskUK is a "catch-all" subreddit for questions about the UK life and culture, but this does not mean we accept any and all questions or answers. We are liable to remove posts or comments which are best discussed in more specialised subreddits, or are simply not desired here because of the problems they bring.
We explicitly do not allow questions or answers on or including:
politics (r/askukpolitics, r/unitedkingdom, r/ukpolitics)
technology (r/techsupport, r/technology)
relationships (r/ukrelationshipadvice, r/relationships)
DIY (r/diyuk)
university/education (r/sixthform, r/uniuk)
visas/citizenship (r/ukvisa)
medical advice (including mental health) (r/mentalhealthuk)
ranting/venting (r/britishproblems)
surveys (r/samplesize)
advertising/solicitation (including the mention of brands which could be perceived as marketing)
repetitive/seen-often (just search the sub)
"does anybody else" type vent posts (as yes, someone does, be more specific or use r/britishproblems).
questions based on protected characteristics, such as race, religion, ethnicity, sexuality, gender, etc. subject to moderator discretion.
...and we may remove others if we believe they are liable to introduce problems for the subreddit.
In some circumstances, a more appropriate subreddit may be available. Check the sidebar for other subreddits to have these discussions. Also see r/unitedkingdom's extensive list of subreddits; https://www.reddit.com/r/unitedkingdom/wiki/british_subreddits
If you believe this post should not have been removed, first read our rules before messaging the moderators. See our guide on common issues with posts and how to overcome them!
Inside-Definition-42@reddit
99.99% of the online content you see about stock traders, FX traders and Crypto Bros making money is designed to get you into their funnel, perhaps they sell you a course, perhaps you push you to use their affiliate platform……or with crypto, pump & dump schemes or payments from new coin creators.
They don’t make their money from trading.
Ethan_brooks8225@reddit (OP)
Yeah that’s exactly what makes it confusing. Most of what you see online seems more about funnels and selling than actual trading. Makes you wonder if there’s a genuine side to it that just isn’t as visible.
Inside-Definition-42@reddit
If you had a money printing scheme would you tell everyone about it?!
It makes millions per year…..but they will sell it to you for £29?!
A hedge funds can instantly back test any idea using 100 years of stock market data. …..if it worked they can code it into an automated system and react to the signal within 0.01 seconds. This would suck all the value out before anyone manually trading can react.
peppermint_aero@reddit
If it was legit, you'd hear about it from somewhere other than social media
DrHenryWu@reddit
Actual day trading no, most people are just going to lose money. Investing and then waiting years is more consistent than trading
Hypnomenace@reddit
Been trading 5 years, started when COVID dropped on us.
The vast majority don't succeed or make money due to various psychological reasons. Normally these:
1: Strategy Hop - They have a system in place that they follow to trade. It either goes through a losing streak, it doesn't trigger enough entries or they believe they have found something better. So they change strategy, and keep doing this until they run out of funds or stop.
2: Forcing trades - They take trades because they "feel" like it and without any system in place.
3: They burnout - They spend countless hours learning hundreds of different strategies, indicators and chart setups watching YouTube videos. All will be pointless as they will only ever use 2% of anything, the rest will be forgotten. Next they try to learn fundamental information and become overwhelmed.
4: They cut profitable positions too early in the fear they will lose any gains, and hold losing positions for too long in the hope they turn around.
Trading is not about making money, as counter intuitive a statement that is.
Trading is about following a specific system, no matter what.
Making money is then a consequence of that.
Ethan_brooks8225@reddit (OP)
That’s actually a really solid breakdown, especially the psychology side of it. The strategy hopping and cutting winners early / holding losers too long part is something I keep seeing come up again and again. I do trade myself as well, and what you said about following a system no matter what makes a lot of sense consistency seems way harder than just learning entries. Feels like most people focus on ‘how to make money’ instead of just getting the process right.
Hypnomenace@reddit
Took me a couple of years to fully make peace with accepting losses and not watching the charts every 20 minutes.
I'm only trading a handful of stocks on the daily and weekly chart, with some long term positions open now so I don't really have many entries per month. Not making life changing amounts, just growing the account.
My strategy is just simple support / resistance and trend line levels. I use a couple of moving averages for momentum when I'm in a position.
I used trading view a lot at the beginning. I used to pay for a pro yearly subscription every November when they had 70% off. This is the first year I haven't actually bothered and i have just gone back to the free version now.
Ethan_brooks8225@reddit (OP)
That actually sounds like a really solid place to be at tbh. Taking a couple of years just to get comfortable with losses and not constantly checking charts makes a lot of sense that part seems harder than the technical side. Keeping it simple with support/resistance and higher timeframes probably helps a lot with avoiding overtrading too. I do trade myself as well, and I’ve noticed the same the simpler things tend to work better when you actually stick to them. Do you feel like things improved more once you reduced screen time and focused on fewer setups?
Hypnomenace@reddit
Started off like most people on lower timeframes for more entries (15 mins) but I work full time so was relying on alerts that I used to set on Trading View. It was a lot to try and manage and didn't really work out that well as I'd sometimes miss some cause I was on calls or in meetings.
Had a bit of burn out so gave it a break for a bit.
Got speaking to someone on FB about trading, they had a private slack group with some high wealth traders in so joined them.
Learnt a lot from them, they just trade the higher timeframes so that's what I decided to stick with and saw better, results.
Positions are easier to manage, less stressful and take up less time in an evening reviewing charts etc.
HistoricalBinBag@reddit
There are multiple types of trading.
People buying options on equities (shares) are basically gambling unless they have insider information.
People speculating on the future price of comodities (products like oil, gold) are more grounded in reality in the sense that - you can base it on your knowledge of the real world and what you believe the future of things to be
Then you hae people who are buying shares direct with a view that the price will go up - i wouldn't really consider this trading in the way you are asking the question - buying shares is typically a 'long' position - i.e. you intend to hold them for a while through ups and downs for a general overall up (otherwise, you would buy a call option which would be point 1 above)
But ultimately all of it is based on a guess (unless, insider trading) on how the price of something will go in the future.
'Trading' in the way you are talking about it is more like day trading - i.e. making a bunch of trades today, a bunch more tomorrow - this sort of trading is based on market volatility which is extremely hard to predict. It is very possible to put 1k in and get 40k out with a lucky guess - but it is almost impossible to get that right based on knowledge - for example Microsoft once announced huge above target earnings but their share price went down.
'Investing' is going long on positions - i.e. putting money into the market in certain ways with a view that it will go up in the longer term.
Do people make money? Yes.
Is it extremely risky? Yes.
Is there a 'system' No.
Is it all just astrology for bros, Yes.
Jay_CD@reddit
For me it's a side hustle.
I follow a group of stocks which I research and understand and don't deviate outside that list. My MO is to dive in when I think they are have dipped, wait for a bounce/I have made a small but working profit and then head for the exit and repeat. I also have a couple of longer term investments which are ticking over with decent dividends.
I looked a while back at what made Warren Buffett a great investor - and he's written enough times about his methods and they are quite simple to follow - buy stuff that people need, buy companies that are well run and have a decent defensive moat and buy stuff that you understand. There's some more, but if you are thinking of getting into investing then read as much as you can about him and the concept of value investing and compounding.
What I don't do is fling money at the wall in the hope that I will make money on what amount to gambles, neither do I listen to other people's tips and advice, at least not without first doing tons of research.
There's money to be made - but you need to have a bit money in the first place and also need to be in a situation where you don't need access to that money to pay bills etc, if I haven't said so already, you need to do your own research and then even more.
Ethan_brooks8225@reddit (OP)
Sticking to a set list of stocks and not jumping on random tips probably avoids a lot of unnecessary losses. The Buffett approach makes sense as well especially the part about understanding what you’re investing in and thinking long term. I do trade myself as well, but I’ve noticed a similar thing the more structured and selective you are, the better the outcomes tend to be. Do you find your short-term entries (buying dips and exiting on small moves) work consistently alongside your long-term positions?
Elster-@reddit
Trading is a serious career that is extremely high stress and not easy. 99% of what you see online is gambling and social media farming. You also need funds to start with, if you are starting off without a reasonable buffer using your own money then you need to be employed to do it. If you can’t get a job doing it, you are probably best off not bothering.
Ethan_brooks8225@reddit (OP)
Yeah I agree it’s definitely not easy and a lot of what’s online does make it look unrealistic. At the same time, I don’t think trading itself is the issue it’s more how people approach it. Most jump in without a plan or proper risk management. I do trade myself as well, but only with a structured approach and keeping expectations realistic focusing more on consistency rather than big wins. From what I’ve seen, the ones who treat it like a skill and build it slowly alongside a job seem to have a much better chance of making it work.
Elster-@reddit
Trading is a serious career that is extremely high stress and not easy. 99% of what you see online is gambling and social media farming. You also need funds to start with, if you are starting off without a reasonable buffer using your own money then you need to be employed to do it. If you can’t get a job doing it, you are probably best off not bothering.
I know a lot of traders and have been a trader myself. I’ve never seen anyone who does it alongside a job doing well over a long time.
It’s a very high stress job, even more so when it’s only your own money.
rdmprzm@reddit
Yeah. You need four things.
1) Understand Price Action. It's the system of how price moves. I.e. Trend. It 'wants' to do version things. This offers opportunities due to probabilities. Ignore indicators and what 99% of what YT/X 'teachers' (tries to sell you). You only need the chart. News only accelerates price action FWIW. Yes, this exists, but few know about it and even fewer understand the process.
2) Trading system you stick to. Based on price action. You wait for a specific setup and trade only that, using multiple profit take levels. The first is always 'safe', i.e you bank profit early. You also manage/move your stop loss to maximise profits. You use probability in your favour. Yes, that does exist. See point 1. Mark Douglas has some golden videos about this. Look for the four part series on YT - fourth video.
3) Proper risk management. You never, ever, risk more than 1% of your account (across all active trades). 0.5% per trade is recommended. When you combine this with points 1 and 2, you can be profitable even with a 50% hit rate. In other words, your stop loss is defined by a percentage of your account. Obviously, only risk what you're able to lose (account size). Prop firms are also an option if you know what you're doing.
4) Emotional intelligence / control. Even for those good at price action, this is the hardest part. Sticking to 2 and 3, and not letting your emotions (fomo/revenge trading etc) take control. Be objective over the results of the current trading system you are using. Don't think of it as being successful or a failure. Don't let them determine joy or anger. You are just testing a system for effectiveness.
Once you get to that point and have been profitable for a couple of years (using the same strict system/setup) it feels as easy as anything else you're used to. Caveat: a custom UI (that has API access to the exchange) is highly recommended. You can automate moving SL and auto risk % of account etc. In other words, set the trade and step away (the best thing you can do to stop emotional imbalance). The default UIs exchanges offer (or basic phone apps) are not designed for effectiveness.
Ethan_brooks8225@reddit (OP)
That’s actually a really detailed breakdown, appreciate you taking the time to explain it like that. The part about risk management + emotional control especially stands out feels like that’s where most people struggle even if they understand the basics. I do trade myself as well, and sticking to one system consistently without jumping around seems way harder than it sounds. Out of curiosity, how long did it take you to get comfortable with your current setup and trust it fully?
Nirnroot_Enjoyer@reddit
I have one friend who actively makes money in stocks/shares.
However what's clear is that it's a full-time hobby , and he spends a lot of time looking for companies to invest in.
I guess my point being, you're very unlikely to make money, unless you're willing to put a lot of effort into it.
Even then, it's a huge game of chance.
He lost about 15k when trump started his tariffs, for example..
Ethan_brooks8225@reddit (OP)
Yeah that actually makes a lot of sense, especially the part about the time and effort involved. It definitely doesn’t seem like something you can treat casually. And yeah losses like that can happen, which is why I think most people struggle when they take too much exposure or don’t manage risk properly. I do trade myself as well, but I’ve noticed it feels less like ‘chance’ when you focus more on controlling risk and staying consistent rather than trying to predict everything.
Nirnroot_Enjoyer@reddit
Obviously everyone wants to make more money, but if it were easy, everyone would be doing it. There's certainly some strategies which can be effective.
I'm a bit of a tech nerd and tend to keep quit dialed into news and trends etc. and I've been asked a few times for my opinion on certain companies a few times over the years... And I'd honestly say I'm probably wrong half the time, at least.
I did however tell him to invest in Nvidia about 4 years ago, which he didn't end up taking haha.
But I also said said ASML.was a sure bet, but I blame trump for that one 😅
Ethan_brooks8225@reddit (OP)
Yeah that’s a good way to put it tbh if it was easy, everyone would be doing it. And being right only half the time actually sounds more realistic than most people admit 😅 I guess that’s where risk management becomes more important than just picking the ‘right’ trades. That Nvidia call sounds like a painful miss though haha
VolcanicBear@reddit
No.
Gullible people are certainly losing money trading.
Ethan_brooks8225@reddit (OP)
Yeah that probably happens a lot tbh, especially when people jump in without really understanding what they’re doing. I guess that’s why it gets such a bad reputation overall.
OutrageousBid699@reddit
I trade most days,. I have a strategy that I stick to and aim to make $200 a day, although it doesn't always work out that way, and have a win rate of 80%. Its not life changing money I trade after work, and could never do it full time, that would be too stressful. It's like a hobby for me, and the proceeds of it go towards funding other hobbies or holidays, after the King taks his cut, of course.
I have been doing it for a few years, and only in the past few months does it feel like I've got a proper understanding of how things work.
Ethan_brooks8225@reddit (OP)
That actually sounds like a really balanced way to approach it tbh. Treating it more like a side thing instead of relying on it full-time probably takes a lot of pressure off. An 80% win rate with a fixed target like that is solid as well, especially if you’re sticking to a strategy. I do trade myself too, and what you said about it taking a few years to really understand things definitely hits it feels like the learning curve is way longer than most people expect.
Ethan_brooks8225@reddit (OP)
From what I’ve seen online, most people either lose or struggle with consistency. Wondering if it’s just lack of proper strategy or something else.
Yakumo_Smith@reddit
You are dropping a large number of buzz words into this thread when you reply to every comment. That to me, makes you look either like a bot, or someone prepping to reveal to people how you handle all the concerns via your special approach
Ethan_brooks8225@reddit (OP)
Haha fair enough, I can see how it might come across like that 😅 Not trying to sell anything or push an ‘approach’ tbh just genuinely curious and trying to understand different perspectives. Probably overusing the same terms a bit because I keep seeing them everywhere myself.
turtle1288@reddit
I don’t know the exact stats but something like 90% of people lose money trading.
It’s like everything, you will have engaged with a post about trading and now social media platforms are pushing them towards you.
Ethan_brooks8225@reddit (OP)
Yeah I’ve heard similar stats too, which is why I’ve been a bit cautious about it. I guess the real difference comes down to how people approach it most jump in without much understanding and treat it like quick money. Do you think it’s actually possible to do it consistently if someone takes it seriously?
turtle1288@reddit
Anything is possible yeah. I’m sure there are people that make money trading but please don’t think it’s either easy or without serious risk
Shoddy-Reply-7217@reddit
The house always wins.
Trading is just posh gambling.
Ethan_brooks8225@reddit (OP)
Yeah I get why it feels like that tbh. A lot of people do treat it like gambling, especially without any plan. I guess the difference (if there is one) is whether someone actually approaches it with risk management and consistency rather than just chasing quick wins.
intothedepthsofhell@reddit
When you gamble it's you vs the house, and the fact they are in business shows it works for them. Trading it's you vs large some of the richest companies in the world with teams of highly qualified traders with access to information and resources that you don't. Same rules apply - they get rich by taking your money.
The only way to "win" at trading is slow and steady investment over a 5-10 year timeline. There's no quick wins.
Neither_Process_7847@reddit
Should still beat savings account interest, though (because there you are paying the bank to do the trading for you and give you a guaranteed return while soaking all losses - that comes at a price in lost returns)
Ethan_brooks8225@reddit (OP)
Yeah that’s a fair point, especially about competing with institutions that’s definitely something most people underestimate. I guess that’s why a lot of people struggle when they try to ‘beat the market’ without any structure. From what I’ve been seeing, the approach that focuses more on small, consistent returns and strict risk control feels a bit different from trying to outsmart big players. But yeah, it definitely doesn’t look like something easy or quick at all.
xcxmon@reddit
You can tart it up however you want, it’s still just posh gambling.
Neither_Process_7847@reddit
You can control things a lot more than in gambling - gambling is high loss / high return entirely because you cannot manage the risks. Highly uncertain investments will give the big returns but likely lose you money for the same reason - slow and more steady market trades won't give the mega returns but give far more predictable, if lesser, gains.
Visual-Economist5479@reddit
Plenty of people do. It takes a significant amount of time and effort and a good pot of starting money. The more money you have at the start the less risk you have to take to make a living.
Eg if you want to make £30k a year and you have £100k you need to make 30% profit. If you have £10k you need to make 300% thats a lot more risk of blowing up.
The ones who do don’t post about it on instagram suggesting others sign up.
The ones you see are making money from selling you courses, getting a cut of what you deposit/lose when you sign up via referral links.
If any amazing “trading strategy” they had was any good it wouldn’t exist and if it did, why would they show you instead of using it.
Ethan_brooks8225@reddit (OP)
that actually makes a lot of sense, especially the part about starting capital and risk. I guess that’s where most people get it wrong trying to aim for unrealistic returns with small amounts and taking too much risk. And yeah, the whole ‘people who really make money don’t promote it’ point is interesting makes it harder to figure out what’s actually legit.
Breedy321@reddit
Very few are people are actively trading and very few of those are making money because they make bad choices
Ethan_brooks8225@reddit (OP)
Yeah that sounds about right tbh. I think most people struggle because they make emotional decisions or don’t really have a plan. Feels like consistency and risk management are probably the hardest parts to get right.
BabaYagasDopple@reddit
Almost always anyone posting online about it is because they’re trying to sell you a course. ETF’s > 90% of traders. That’s where you should invest.
bettyswollocks22@reddit
Is it like a pyramid scheme? I’ve recently seen posts from someone from school who is into ‘trading’ but she has a track record of pyramid scheme after pyramid scheme.
Ethan_brooks8225@reddit (OP)
Yeah I get why it might come across that way, especially with how some people promote it. But actual trading itself isn’t a pyramid scheme it’s just buying and selling in financial markets. The problem is more with how some people market it, making it look like easy money or pushing courses aggressively.
Ethan_brooks8225@reddit (OP)
Yeah I’ve noticed that too, there’s definitely a lot of ‘course selling’ around it which makes it hard to take things seriously. ETF investing does seem like the safer route for most people tbh. I guess the challenge is figuring out whether trading can actually be approached in a more structured way, or if it’s just not worth it for the majority.
BigFaithlessness618@reddit
"trading" almost always loses money. You are only going to beat the market if you.
1) get lucky. 2) have inside information 3) study the market with a team of people.
Investing is different longer term and focuses on spreading risks. My investment growth is about 10-15% of my annual income.
Ethan_brooks8225@reddit (OP)
That’s a fair take, especially on investing vs trading. Long-term investing definitely seems more stable for most people. I guess with trading the issue is that many people jump in without a proper plan or risk management, which is why the results look like that. Your 10–15% growth sounds solid though — are you mostly focused on index funds or individual picks?
Akash_nu@reddit
This entirely depends on individuals and their risk appetite. It can’t really be summarised at a national level.
Ethan_brooks8225@reddit (OP)
That’s a fair point. I suppose risk appetite plays a big role. I’m more curious about the consistency side of it like whether people actually manage to make it work long term or if most drop off after a while.
AutoModerator@reddit
Please help keep AskUK welcoming!
When replying to submission/post please make genuine efforts to answer the question given. Please no jokes, judgements, etc. If a post is marked 'Serious Answers Only' you may receive a ban for violating this rule.
Don't be a dick to each other. If getting heated, just block and move on.
This is a strictly no-politics subreddit!
Please help us by reporting comments that break these rules.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.