Do You Have What It Takes To Trade Stock Market Products Successfully?
Just what does it really take to be able to trade stock market companies and indices?The truth is that there are some rather shocking statistics about the "life expectancy" of traders in America. The following figures actually relate to commodity traders, but they almost certainly translate in similar ways to stock traders too:
- 80 percent of traders last less than a year
- 90 percent of all new traders lose ALL of their capital within a year
- over (note that is OVER) 90 percent of all commodity traders fail
If you are planning to learn to trade stock market shares, or have recently begun, it clearly pays to study and understand what you plan to trade and why at the start. Like learning to play poker with professionals at a club, this could become a very expensive learning curve.
The reality is that trading is an incredibly competitive business in which there is no room for emotion, friendships, confused loyalties or half measures. It is dog eat dog.
In fact, the majority of trading is a zero sum game. This means that if you are winning and making money, someone somewhere is on the losing end of the trade. Your profits equal someone else's losses. Do you want those losses to be yours or theirs?
If it helps, it is important to understand the mindset...
Back in 1986, Ivan Boesky gave a speech at the University of California where he famously said, "Greed is alright by the way. I want you to know that. I think greed is healthy. You can be greedy and still feel good about yourself." These sentiments were later taken up more famously by Gordon Gecko in the movie Wall Street. Boesky was later fined and imprisoned for insider trading...
But the point is that trading - especially in things like options and futures - was designed purely to be greedy. It is about making a profit for the sake of making a profit. And the big profits go to the tough s-o-b's that can hack it.
If you plan to trade stock market instruments, it is vital to understand and accept this. Better yet, embrace it and start fighting for your share of the profits!
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To read more about stock market trading, please visit:
Some Stock Trading Basics
A Beginners Guide To Stock Trading
Can Virtual Stock Trading Help You?
How To Trade Penny Stock
Stock Trading For Dummies
Some Vital Stock Trading Tools
How To Get Affordable Stock Trading Training
Could Stock Trading Platforms Help You Make Extra Profits?
Should Private Investors Be Using Stock Trading Platforms?
Stock Trading For Dummies
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