Stock investing, just a skill?

Team Veye | 05-Jun-2022 Stock investing

“If you can't fly, then run, if you can't run, then walk, if you can't walk, then crawl. But whatever you do, you have to move forward.” Martin Luther King Junior.

To be successful in financial markets every participant must follow this. The aim should be to make money in the market every day. Nothing else.

Treat trading like a business. A sound business will make money while hobbies will take money out of your pocket. For excitement one can always go to a casino.

Remember, trading is just a probability game and not a prediction game. Learning is a continuous process here. When you think you know everything, the next day you lose big money. Profit in trading is inversely proportional to your ego. The mistakes in trading will only make you stronger and better trader. A mistake becomes a loss or failure only if you do not learn from it.

It is impossible to catch all the excellent trade opportunities every time. Don’t chase a trade. Let the trade come to you in the form of a good set up and over trading is an expensive habit.

It's better to stick to one trading system across different market conditions. Your learning curve will not improve if you keep on jumping from one strategy to another. And once you start making profits, learn how to ride your profits, which is the most challenging task in trading.

Invariably, slow & steady wins the race. Secret of wealth creation is to be disciplined and having patience. Patience is not just the ability to wait but the ability to keep good attitude while waiting.

It is seldom that something comes risk free. Creating wealth without risk management could be temporary but managing it may result in long term success. Risk management in stocks involves position sizing to risking only what you can afford to lose.

And finally, the biggest enemy of a trader is emotion. If you can’t control your emotions, you can’t control your money, so said Warren Buffett.

Disclaimer

Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.

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