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Three Myths of Stock Trading

 

I've made a living as a Stock Trader for over 15 years, and have really learned the ins and outs of the business. But I didn't make my start at a big brokerage firm that taught me everything through slick training course. I made it through trial and error, taking seminars and classes and learning as I go.

 

While my self taught training may have resulted in a slower success, I know a lot more about the real world of stock trading than a lot of those investment advisors out there who only know what their employer told them. One thing I have discovered over the years is that there are myths that continuously recur when talking to people about stock trading. Here are three of them:

 

First, is the myth that only certain types of people make successful stock traders. True, those folks who can analyze stock trends and “pick” the big winners are typically left brained thinkers (more than 60%), which is probably how this myth originated.

 

But I have found that trading stock has something in it for every type of thinker, and the trick is to find the process that works best for you. To be honest, I could never analyze and pick stocks all day, but that hasn't stopped me from a great career trading stocks. Anyone else can too.

 

Second, is the underlying belief that stock trading is risky, even riskier than owning your own business. It is true that people have lost everything in the stock market, and those are the stories splashed all over the headlines that tend to intimidate people from trying their hand at stock trading.

 

But I have learned that if you have the right process in place for setting your stops and limiting your risks to a level that you are comfortable with, it can really be a very low risk profession. For example, I have created a system for myself that allows me to trade with a 75% or more success rate, which is fantastic! I know of no other business that can give me that kind of low risk situation.

 

Finally, how many times have you heard that its a full time job to make consistent big money in the stock market? Absolutely true for some kinds of trading and especially if you don't have good stock pickers to rely on. Then you are stuck doing the grunt and the leg work in a fast changing environment – sure that takes a lot of time.

 

However, it is absolutely possible to make a great career out of trading stock for 2-4 hours a day, and having the rest of your time to do what you want. You need a strategy in place that is time effective and a low enough risk to meet your comfort level. How do you find such a process? There are a lot of courses available and it can be tricky to find the one that's right for you. I advise you to investigate several options, ask questions (if there's no one who will answer your questions, move on...life is too short to deal with bad customer service). Head into your research knowing the right process is there for you, and you will be on your way to success at stock trading in no time.

 

I have written a free report describing my journey to becoming successful at trading stocks and giving useful tips I and my students have used to consistently trade profitably. Visit my site to obtain a free copy and learn more about how you could be trading stocks profitably in as little as two weeks.

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1 comment to Three Myths of Stock Trading

  • Stock Market Trading

    Absolutely agree with these points you made here.

    So many new traders think they need to be working at a huge firm or spend hours in front of their screens. And the risk part you nailed straight on. Of course there is risk, but how else could there be this much potential reward?

    Mike
    Stock Market Trading recently posted..My view of AAPL March 15th- 2012My Profile

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