I had my fair share of losing money, trading capital drawdowns, busting my own trading capital many times before finally learning from past mistakes to become a better trader and stop do stuff like it's a casino.
I don’t want to share with you something that you all heard so many times (yep, I haven't lost my fate in humanity) like avoid margin trading or invest in mutual funds. I believe I have some wisdom I wish I had from the beginning.
- Trading is just 5% theory and 95% about emotional control, risk and money management, overcoming one’s greed, having strict stoploss and targets predefined before taking a trade.
- Don’t follow advice from forums blindly. Build your own map of the world. Each of us learn to trade at our own pace and don’t get discouraged if you find that after a few years, you’re still struggling to master the ‘money game’. You can keep in mind different advice from experienced players (e.g. I recommend this qooore app and it's discord community), but it's vital for the final decision to be yours.
- Accept losses and do not make investment decisions based on emotion Especially greed, fear, or panic. Yep, you didn’t buy Betcoin (lol couldn't resist) at 3,000$ because you didn’t know back than what direction the price would take. No regrets. Keep yourself focused on here and now, move ahead
- Know yourself. What is your current financial situation? Why you are investing? For what purpose the investment is being made? This will automatically answers questions such as how long you are investing for. The other important aspect is how much risk you would normally want to take. Keeping both in mind, assess your risk carefully.
- Never forget that for investing, time is your best friend - and greed is your worst enemy. Patience is a requirement in stock trading. There are no short-cuts or ‘holy grail’ when it comes to stock. And you only need to have couple of strategies but those should be well tested and made perfect over the period of time.
To me, trading is a skill that requires 3Ls - ‘Life-Long Learning”.
Stay humble, be honest and willing to admit your mistakes in trading and don’t try to rationalise and explain mistakes away, and always remain teachable and never think you’ve ‘arrived’.
Submitted May 30, 2021 at 07:50PM by msdivinity3d https://ift.tt/3fUua4F
