| Overlooked Truths About Stock Trading |
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| Written by Shaun Rosenberg |
| Thursday, 17 June 2010 08:32 |
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With all the hype in stock trading it is no wonder that so many people believe that they can jump in and start tripling their money in days or weeks. If all of those "Guru's" are making 500% returns without having to work hard at it why can't you?
With all the hype in stock trading it is no wonder that so many people believe that they can jump in and start tripling their money in days or weeks. If all of those "Guru's" are making 500% returns without having to work hard at it why can't you? There are, however, a few things that new traders tend to overlook when entering the market. 1. There are Bumps in the Road People hear all the time about how these Guru's are making 100s of percentage point returns on their trades in short time periods like a week or a month. People assume that this means they will start making 100s of percentage points themselves on every trade once they start. This is simply not true. I consider a professional stock trader anyone who can make 20%+ off of their investments on average per year. To expect to come into the industry making 100% of return is kind of like starting to learn to Ice Skate and expecting to win the gold metal in the next month. Trading is a learning game there are bumps in the road and you have to get through them. 2. Losses Need to Be Considered Another thing that is overlooked is that losses do happen. It is easy to be wowed by some "Guru" who shows you a trade that made 300% in 2 weeks, but that is just one example. Losses also occur in the market. Out of that 300% return it could be that 2/3 of it was simply recouping losses and when everything is said and done they may just be a little up for the month. 3. Not Everyone Should Trade Stocks Although most people are probably capable to become a trader, not everyone will stick to it and keep at it through all the ups and downs in order to keep learning and improving. Just like in business most people will fail at it. Only those who will keep going can see everlasting success. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. For more stock market trading tips or other information on stocks visit Shaun's site on the stock market basics Get a totally unique version of this article from our article submission service |