A lot to people are waking up to the power of investing and investing whatever amount they have. People are starting to see that it’s actually easy to invest and the information is there for anyone willing to learn.
For the beginner trader, investing, entrepreneur or whatever you want to call yourself, Google is a very power tool. Not only that, this site is a good place to start. I have done it and I continue to do it and I am always willing to share what I have learned over the years of trading.
There are a few rules I go by however that keep me grounded. These rules are the bedrock of staying calm when the market doesn’t do what it is you want it to do. It doesn’t always happen and when that time comes, you have to keep your wits while other lose their cool. That is what makes a successful trader.
Keep your cool
One thing you can’t afford to do is lose your cool, panic and sell at the wrong time. I made this mistake early on in my trading career. I had little money, invested it in penny stock options, and when it went the opposite way, I lost it and sold it. And the worst part, the position rebound and did exactly what I wanted after I sold it.
What goes up must come down and what goes down must go up
I have had several examples and enough rough and tumble to learn from this rule. Have a lot of patience because the market will not do what you want right away. Sometimes it takes days, weeks, months even to get what you want from the market.
And when you do, take it. Because there is nothing worst than watching a position go where you want, wait for it because of greed, and then it tumbles back down. But even then, wait, then take your money. Set your goals for the trade, have patience, then collect. Then repeat.
Don’t start investing in options right away
Wait until you know how the market really works, have a full understanding of volatility, deltas, theta and all the options greeks before dabbling with options. Trading options is a whole different ball game. It takes a lot more technical analysis and understanding before getting into the options trading market. But the good news is, once you understand how options work, you get an idea of how forex and pretty much everything else trades.
Don’t give up
There are setbacks when doing anything and learning to do anything. That’s life. We don’t just learn things overnight and become experts. We face hurdles and make mistakes. The key is to fall but get back up and give it another go. And keep giving it another go until you make it.
The people that succeed are the ones that fall 7 times and get up 8. No one experiences success all the time and every time. Keep going but learn from your mistakes. If a trade didn’t work out like you wanted, understand why and learn not to repeat that same mistake again. Investing to be financially free takes time. I didn’t know I would get where I am now with my trading but I am and I am here to share what has lead to mostly success in my life and making money in the stock market.
Don’t get greedy
Do what works and keep to it. But don’t get greedy, when greed sets in, you start to lose. Because we ant to put in more money in a position, we want to hold it longer to try and squeeze more out of it even after you know that it’s a long shot. Greed is your worst enemy so master your emotions and quell the need to want more than the market is willing to give.
For example, today after doing my morning research I saw that Tesla Inc. was going to drop but I had a call option with 100 shares on it already. But I didn’t panic, I waited, and I wanted to option to call up (rise up) to $6.15, $615.00, and that’s were I left my sell order. It went to $6.20 or $620 and it sold at $6.15, I collected my money.
Now I could have been greedy and waited for it to go to $6.25, which it did but I didn’t because my goal was to make $25 on the trade and monitor others that I had more funds into. But I didn’t wait. I took what I set out to take from the market. And not even 30 minutes later, Tesla dropped $1.35 and then rose again $2.77. You see my point now? What does up comes down, take your profits, reenter the market and take more profits if the opportunities are there.
Be a happy trader, keep reading and let’s make money.