Quora Answer: Can You Make a Living through Investing?

The following is my answer to a Quora question: “Can you make a full time living through investing?”

It is quite possible to make a living as an investor.  Making a living, here, means having a decent income, and not necessarily becoming wealthy.  This is not to say that it is not possible to become wealthy, but we must also consider the inherent risk, and you can just as likely lose your assets, due to various reasons.

To make a decent amount in investing requires understanding the asset class and portfolio you are investing in, the difference between investing and speculating, cognisance of risk, and your investment horizon.  Too many people treat investments as a form of gambling, and indulge in speculation.  This requires a lot of discipline to not jump at every “tip”.  It involves choosing an investment strategy, and sticking with it.  When it comes to choosing the asset class, the investment strategy, and the investment horizon, if you are new, it would be advisable to avail yourself to the services of a financial advisor.  Alternatively, it is perfectly acceptable to run your investments through an advisor, or broker.

Alternatively, assuming you have significant funds, and you have a good understanding of business, a specific industry or field, you may consider investing in an accelerator, or a start-up incubator, or even a specific business.  This has a higher risk, but if you understand how to navigate the process, including tax mitigation, you can earn very well.