Stock investing, just a skill?
Team Veye | 06 Jun 2022
“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.
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