Before You Start Stock Trading First Think If It Is Worth Your Time And Money



Before you start stock trading: first think if​ it​ is​ worth your time and money.
That was the​ good news .​
The bad news is​ that those companies are selling you the​ tools and service only .​
They do not sell you any guarantees of​ success .​
It does not matter if​ you profit or​ lose money,​ the​ trading company will get its fee for each trade anyway.
Since you are considering going into the​ stock market,​ most likely you are planning to​ get a​ significant return on​ your investment which should also be better than what you would get buy investing your money into mutual funds (less risky than single stocks) or​ even no-risk certificate of​ deposits (CDs) where returns are guaranteed.
Well,​ how can you get such returns? the​ answer of​ course is​ simple and well known: buy low,​ sell high .​
If you do it​ most of​ the​ time you’ll be a​ successful stock trader .​
Now the​ first problem comes: how do you know when to​ buy? There are probably several ways to​ do that,​ we​ do not discuss this here,​ let’s assume that you know somehow or​ think you do know .​
Lets say you got lucky and the​ stock after you bought it​ is​ going up,​ just as​ you planned .​
Now another problem comes: when to​ sell? After the​ stock is​ up 20%,​ what do you do? Sell now,​ or​ wait until it​ is​ up 50%,​ 100% or​ 200%? Do you listen to​ investor news and do what everybody else does: selling,​ buying more,​ or​ continue holding the​ stock? If you choose one of​ the​ first two options,​ how much of​ the​ stock you should buy or​ sell? Or if​ you hold the​ stock,​ are you sure it​ will continue to​ go up,​ or​ you may end up waiting until the​ stock price is​ back to​ the​ original and than lose it’s value resulting in​ your losses.
The truth is​ some people actually do know the​ answers to​ those questions most of​ the​ time and actually make profit .​
The question is,​ are you as​ good as​ those people? Most people are losing money guessing and trying to​ time the​ market .​
If you’re new in​ this game and not planning to​ spend much time on​ research,​ chances are you will lose .​
You will be competing with professional traders,​ big players and insiders who profit mostly because many others keep losing .​
Plus what are the​ chances that you can predict the​ market? the​ chances are very slim.
Some may argue: I​ had that stock,​ I​ sold it​ when it​ was up 20%,​ but if​ I​ did not sell it​ at​ that time,​ now it​ would be up 300% .​
How stupid I​ was when I​ sold it,​ if​ I​ did not I’d made a​ lot of​ money .​
I​ have to​ do this again .​
It really proves that I​ can make a​ lot of​ money there and it’s easy! That is​ right you can make a​ lot of​ money,​ but it​ is​ not that easy as​ it​ looks .​
Lets assume you did not sell the​ stock at​ the​ time it​ was up 20% .​
Then what makes you think you would wait until it​ is​ up 300%? You may have sold it​ when it​ was up only 25% .​
Or it​ may go down several times below 20% increase,​ you could have thought it​ was going down forever and sold it​ even with a​ lower than 20% profit.
The bottom line is​ that it​ is​ easy to​ look at​ the​ past and see all the​ mistakes you’ve made .​
However it​ is​ very difficult to​ do right things for the​ future .​
Unless you know market trends well,​ understand related industries and stock company financials,​ most likely you will not be able to​ make profitable trades .​
Even professional traders do mistakes and lose money .​
If you are not one of​ them or​ not planning to​ become one,​ your best bet would be investing into CDs,​ mutual funds or​ your own business.





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