To join the elite successful traders, one must be patient and persistent in unraveling the secrets of the stock market. Absolute focus and willingness to learn and understanding of pre-trade and post-trade situation can be very profitable. After all, each time you make a profitable trade, it will always boost self-confidence.
However the stock market is like a river, forever changing and never expect repeats each time. This thought is overwhelming in that it’s both confusing and yet offer huge massive opportunities.
After all, stock trading is an exercise in constant improvement of your cash thru a study of both the stock market and your personal feelings. There’s fear and greed emotions interplay each time we put our money and our pride on the line during trading.
It is usually a time to educate and discipline yourself within a short time. Whilst investing in stocks is not for everyone, it is for you if you can take the time to carve yourself a winning trading plan that focuses on simplification and the basics of investing. Especially a trading style that matches your capital, personality and risk appetite.
Many a trader, upon some success in their careers, have a small sum at their disposal and decides to embark on this “exciting” biz just because some colleagues boasted of winnings, especially without using capital. The appeal of a financial freedom thru big windfalls will draw in new traders with their hard-earned money. Most will end up surrendering their money, vowing never to come back again, in other words, came to the market to donate their blood like sheep.
Few will take the time to attend stock trading courses, after all it takes 4 years to get an Engineering degree, and these newbie traders think it’s not necessary to take that long or spend the money. Big mistake. They rather lose the money to the University of Hard Knocks. Funny thing, though, I was one of them.
I always believe the secrets to successful trading is already found in the last Trading Book you read. I mean, the author has given his best thoughts and research so that you don’t have to. The only problem is most books ended up in listing a few rules, some 10, some 31, or whatever and in the end some of the rules end up contradicting each other or pure riddles. Even an experienced Trader talks the say way.
What gives, then? The only what is to do your own research, get rid of all the non-working ideas and squeezed out the unusables and finally come to a few preferable less then 5 rules, after all that’s what God gave us in our palm. David Henry Thoreau, on Walden Pond, is right about this need to be simple and yet absolutely right.
Then what’s important is now easily memorized and regurgitated and that’s when you find finer distinctions in your Trading Plan. I always find reading the same classic 4 times will always yield a deeper understanding and new dimensions to your status.
The good news is there are so many pathways to become a successful Trader! After all, understanding the stock market is simply figuring what works so as that you can grow your wealth.
Besides knowing basic stock market terminology, fundamental or technical approaches to trading and deciding if you are a short-term or long term-trader are fundamental to your trading success.
You can find numerous e-articles or websites that supposed want you to trade their way, spending money on data, software, newsletters easily thru the internet. I don’t supposed you need help on this. Just type “dummy investing” or “how to trade” in Google and you know what I mean. Be prepared to be overwhelmed with info overload.
Hence you need to decide first, what do you want to achieve in terms of trading, the amount of time and money you are prepared to pay to learn first. Pay to learn first and later you can learn to get paid, as Peter Lynch will say.
Till my next post, happy trading!