For the serious wealth builder there are 2 long term investing goals – low risk during hard-hitting times and it pays better than the bank fixed deposit rate.
Hence historically invest money in stock market fits the twin objectives aptly and it is the best investment preferred choice. However it is also the most mis-understood investment mode due to the sheer immense availability of books, reports, seminars, training and scams all providing conflicting and overload of information.
For beginners, it is imperative as they start this journey to creating wealth; it is usually rocky, shocking and pure fears. Of course it pays to pay-to-learn thru good books, paper trading and taking the plunge in stocks and begin the greatest ride of their lives.
Most trading system provides info on the right strategies and success depends on picking the good stocks, betting size and withdrawing upon receiving right signals. Success depends on the right timing and attitude towards learning, especially learning from own mistakes and correcting along the way. The market is filled with many great trading systems and it takes guts to finally decide on your own, whatever that makes not sense but what makes money for you. The market doesn’t makes sense for if it does, then all the professionals, engineers and technicians will be sipping wine and couching up big yachts.
Whilst no single system can claim to be the all-time right, the key is to measure the viability of the chosen strategy by constant measurements and compare to targets ( be it 20% per trade, 30% annualized etc) and adjusting as necessary to conserve capital during down-trends and piling on the money during up-trends.
The key to wealth building has always been if one is fearful of the market it is due to lack of self-confidence in himself and his own stock strategy. To embrace the fear and place the bets knowing if you know what to do when your bet turns out to be right or wrong. That is the secret of successful investor. He knows he can limit his risk as he can, could and will cut his losses. He does not trade or worry nor predict the market, but watches the stock if it will play out his hopes. Either way he’s got his actions all ready.
Happy kaizen trading!