If you trade without the proper preparation you’d be better off to Vegas. You are guaranteed to lose money in front of your computer screens. It’s better to have fun and loosing money in Vegas.
- I blew through my accounts. You need to be very cautious for at least a year.
- You should study daily for 6 months before you even start trading real money. Learn chart patterns for hours.
- The toughest hurdle is emotions, trading rationally and following rules. I’ve been sunk several times.
- A huge % of REAL trading is NOT LUCK. But on several trades, it is LUCK! On a long run, it’s SKILL.
- You need to put in the work , this is defined as 10,000 hours of studying and simulation trading. You must become an expert on the equity or instrument you are trading.
- Trading is not about the money, that comes second being a great trader with a defined business strategy is first then the money will come to you.
- Trading is the hardest way to make a simple living.
In my experience I find that the more I trade, it is becoming less and less emotional and more business like. In a way I have been blessed because I am not trading with scared money. Don’t trade if your existence or even worse if ur family depends on it.
If you believe the market is random (random walk theory), you have a 50% winning chance. Then if you constantly cut your losses and constantly let your profits run with some sort of trail you are comfortable with then you will be a winner.
Believe it or not I haven’t spend a dime on trading education. Lot of the basics ( technical analysis, fundamentals, risk management etc. ) can be read in books, most are in theory and not practical to trading. 90% of the education books/courses with high price point is selling the “dream” and written by people that are in the business of trading education, not actual trading business. People love the snake oil sales pitch. It works on the human emotion and that is one of the reason these institutions are so successful.
The best way to learn about investing or trading in the stock market is to read read read, and open a practice account and just start doing it. The best way to learn anything is through real life experience, and investing or trading is no different. Try to pretend hard that this is YOUR REAL MONEY so don’t take risks with it you would not actually take in the real world. See where you are with your practice account in a month or two and decide if you want to make the leap to real money.
Again, I can’t stress enough one of the biggest traps people fall into with these practice accounts is they think of it as “play money” so they take way more risks than they would take with their own REAL money – this amplifies their returns to an unrealistic level and thus they think they became trading geniuses overnight. You need to try very hard to forget that you are using play money.