Over the years, I have seen several people (including myself) lose fortunes while trading stocks, and I’ve found that invariably, it would be for the same reasons. My finance professor used to joke that any stock that goes down in value becomes a long-term investment. Traders are born during bull runs: this is because they assume that their success with stock trading during a bull market is a result of their market timing skills, rather than due to the perpetual upward movement of stock prices in general. Most ordinary people who decide to become traders are bitten by the stock market bug during bull markets.
The sad truth is that some of these stocks will never rebound, at least during our lifetimes. I’ve been subject to the vagaries of the market and Lady Luck far too often to continue trading, so I gave it up a long time back in favor of long term investing, which has been much easier on my wallet and my nerves.


Probably the best approach to trading is an unemotional one, when you just think of it as a job. Here’s why and how trading stocks and market timing have cost many a poor soul their nest egg.
If you liked this article and wish to read more about the economy, stocks, investing, credit cards or other topics on personal finance, please consider subscribing to this feed.
Making the wrong decision about what stocks to buy and sell and at what time can result in bad outcomes. It’s all a big gamble really and the only half sure way of profiting from the stock markets is by investing long term. Day traders tend to have super high portfolio turnover rates, which leads to trading costs and short-term taxes cutting into your profits.


Trading is one of the only occupations in the world where there are literally no barriers to entry. Make no mistake about it trading is a business and if you’ve failed to plan, you’ve planned to fail!
In order to be a day trader, not only do you have to have a strong stomach, but you have to outperform the market by more than the extra costs required to be a day trader.



Forex demo vs real account
Trading options fidelity
Binary option platforms that accept paypal


Comments

  1. Puma

    $1000 if they are appropriate minus and might not be suitable.

    30.04.2015

  2. narkusa

    Use and its exceptionally distinctive worth of every buying and selling indicator its contracts with those.

    30.04.2015

  3. VANHELSING

    You need to make the utmost out out of your sit down and work.

    30.04.2015