On many levels, stock trading is all about being positive – positive about the market and your own strategies. Sadly, even with this being an important key for success, many new traders not only are devoid of it but they also completely overlook this aspect. Read more
Stock trading is all about minimizing risks – using right strategies – to optimize the returns. It’s a game not for daredevils who are always on the go to take big risks but for smart individuals who are calculative in their overall approach.
In short, risk management is a key to become a success trader. Of course, it’s an art that doesn’t come naturally. It needs to be learned, tested and learned better.
“The stock market is a device for transferring money from the impatient to the patient,” said Warren Buffet. And given his remarkable experience and portfolio, very few could really question his ideas and opinions.
Indeed when looked at the stories of all the successful stock traders, one could easily outline the subtle (but very important) truth that lies way behind the mainstream perception of extraordinary financial and technical knowledge. One of the biggest factors behind the high-flights of these individuals isn’t what they know—it’s their patience.
“Don’t get carried away… it will come down.”
Down the line, when new traders find their comfort with the market basics, they are supposedly given a rule that follows a law that of Physics—what goes up must come down.
Stock that goes up must come down, says and believes many.
While a decade back the theory had less contention, not today. With the surge of analytical tools and technologies, more and more figures have surfaced to prove that this is simply a myth based out of someone’s “practicality” and “safe playing”.
“I don’t know how to do it…”
However urgent or rewarding the next step is, as humans, we never run out of reasons. We know stock trading is one of the best investment avenues and it vouches big rewards. Sadly, majority of people obstruct this journey from the go, claiming they don’t know how to trade. This lack of confidence and reluctance to learn comes from the well-conformed myth that you must be a genius to be an ace trader.
“I don’t want to invest in the stock market, it’s too risky!!!”…. “Let’s make some quick money in the stock trading.”
These are two extreme-ended myths that, sadly, majority of people still believe to be true. In particular, the beginners, who either avoid trading because they know less or know too much to “hack” the system with super-human ability. Not that it’s a blatant lie—trading is risky and, on the other hand, it does offer big returns. But the notions that have shaped these narrations are totally wrong. They have spurred from the lack and inconsistency of the right information.