| Truths of Stock Trading |
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| Written by W. Alan Gay |
| Wednesday, 10 June 2009 11:19 |
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There are a lot of misconceptions surrounding the field of stock trading that trigger new trader's fears and keep others from trying the profession at all. As a successful trader for over 15 years, I prefer to take a more positive approach and deal with the prevailing truths that exist in the field of stock trading. Here are just a few.
There are a lot of misconceptions surrounding the field of stock trading that trigger new trader's fears and keep others from trying the profession at all. As a successful trader for over 15 years, I prefer to take a more positive approach and deal with the prevailing truths that exist in the field of stock trading. Here are just a few. 1. Stock trading success will come when you keep your trades low risk on a consistent basis over time. Sure, this attitude will result in you missing out on the occasional windfall that the movies have led us all to believe can happen all the time. However, I have discovered that searching for that godsend trade does nothing but result in a horrendous loss that can completely demolish the portfolio you have been working so hard to build. Better to stay lower risk with steady profits over time if you are looking to make stock trading more than a hobby. 2. You don't have to spend the whole day trading to thrive at stock trading. Now, don't misunderstand. Stock trading is not another get rich quick hustle. You must put in the time and the commitment to master the processes needed to be successful. But, by using GAP trading effectively, my trading day lasts between two and four hours, plus another hour of prep time. And, I make a great income. You can too, if you can find the right process to do so. 3. Building on the knowledge and the experiences of other profitable traders can greatly accelerate your learning cycle. Don't start from the drawing board because it will cost you a lot of money and ten or more years to make all the mistakes others have already made. It is just resourceful business sense to build on the knowledge of others. Didn't your parents tell you "don't reinvent the wheel", but don't we just turn around and do just that? Instead, read works by successful traders, take courses, find advisors and coaches, and use the insights of others to make your journey more enjoyable and low risk. Stock trading is often depicted as mystical and only accessible to the gurus of the industry. Take it from a regular guy, that idea is not correct. With the right processes established and a good understanding of the basic truths of stock trading, anyone can be prosperous. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. W. Alan Gay has been a day trader and coach for fifteen years. His free report describes Alan's journey to becoming successful at trading stocks and gives useful tips he and his students have used to consistently trade profitably. Click to obtain a free copy of his report and learn more about how you could be trading stocks profitably in as little as two weeks. |