Inflated expectations lead to disappointment, and the stock market is no exception. Keep this in mind if you want to try yourself in stock trading.
Too easy money
Stocks are far from easy. Anyone who wants to buy them will already have a lot of difficulties. A poorly prepared user will not understand trading programs so quickly, but this is still half the trouble. First, you will understand how to buy shares in general. Then you will need to understand how to get at least some profit from them, and this is already a whole science.
“Even if you are very talented and make great efforts, some results just take time: you will not get a child in a month, even if you make nine women pregnant.” – Warren Buffett.
Promotions are not fast food with fast carbohydrates. To get an income, you will have to wait. However, this does not mean that you need to buy with the expectation of decades.
Some people trade for a year, others have enough for a month or a week. Particularly impatient market participants are trying to make money on transactions that are several seconds long. Even in this case, at least a little tangible profit will have to be considered at the end of the year.
“Investing should be boring. It doesn’t have to be exciting. It should be like watching paint drying or grass growing. If you want an exciting experience, then take $ 800 and go to Las Vegas.”- Paul Samuelson.
You won’t find any fun in trading. Only a cold and strict calculation will allow you to earn money on the market. Although novice investors are burning with enthusiasm, all this looks like excitement. Buying shares is not a card game, but a serious business.
“The stock market is not a game where you need to answer every pitch. You can skip the ball and wait for the right moment to hit.” – Warren Buffett.
Quitting your job and waiting for a stable income from the exchange is suicide. The market does not know about your monthly loan payments. One month may be a plus, another — a minus, but at the end of the year there will be a profit. The calculation is not only based on months, a negative year is also no exception. Unfortunately, many beginners cannot understand this simple truth.
A ready-made recipe for success
Stock trading is a thorny path. Not only are there only a few intelligent teachers in this area, but everyone has different approaches. No one has any single system that would bring profit. In this regard, investment is closer to art than to science.
Naivety will not save you from losses and disappointments in the stock market. Taking off rose-colored glasses and leaving high expectations is simply necessary if you have seriously decided to do this business. In addition to this, you need a person who will be your mentor. A person who already understands stocks. You can also take stocks trading online courses.