Trading is awesome! Everyone should trade stocks. The benefits that trading brings to anyone who sticks with it are vast. They spill over into and enrich all aspects of our lives, in a myriad of ways extending far beyond the obvious financial rewards. And it's never too late or too early to start learning this fascinating and empowering art.
Trading is something I've loved my entire life. When I was growing up my father was a small-town banker, so he was naturally interested in the financial world. On Friday nights I remember watching Louis Rukeyser's Wall $treet Week on public television with my Dad. I remember him reading the Wall Street Journal, and encouraging me to do so when he came across articles that would interest a young boy.
Incredibly, trading also helps you socially! Not only does its built-in achievement bolster self-confidence, it makes you more interesting to everyone you meet. Over the decades I've talked one-on-one with many hundreds, maybe thousands, of people about trading stocks. And 99% of them are utterly fascinated by the prospect. And who wouldn't be? The markets are endlessly fascinating, and the allure of divorcing income earned from time on task is great. It is really fun sharing what you are doing in the markets with others, helping them see and seize the same stock opportunities you are.
Trading was always exciting, and it changed my life for the better in countless ways. I eventually founded my own financial-research company so I could study the markets, research stocks, and pursue my trading passion full-time. The financial rewards of trading are widely-known, I was blessed to become a millionaire before my 30th birthday. But even if trading hadn't made me rich, I'd still keep doing it for the vast intangible benefits. I won't stop trading until I'm dead.
Trading also yields great insights into other people. Sentiment, how the majority of other traders view the stock markets or any given stock at any particular time, is the most important driving force behind price movements. Trading success demands buying low and selling high, right? The only times stocks are low is when they are unloved and out of favor among the majority of traders. Conversely, stocks only get high when they are popular and the majority of traders want to buy them. Observing others' sentiment gives you fantastic insights into life in general, and human nature, that are extremely valuable.
But trading earnings aren't dependent on time. When you buy a stock, and it rallies to earn you profits, it doesn't matter whether you spent 1 hour deciding to make that trade or 100 hours. Trading opens up a wonderful new world where income is divorced from time! While it is true that trading is a learned art that requires years of discipline and experience to thrive in, the ultimate financial rewards it yields are wildly disproportionate to the time spent learning it. It breaks your income free from the chains of time.
The ultimate result of this liberation is the highly-sought-after goal of financial independence. If you start trading and stick with it for decades, you will get good. And trading mightily rewards experience, building fortunes for those who strive to master it. Eventually your trading will at the very least set you up to retire much earlier than you otherwise could. And since trading doesn't require excessive time (a few hours a week of research is often enough), it can free up many hours for you to pursue your life's passions.
Trading is a great equalizer, shattering all the limiting preconceptions that we burden ourselves with and others impose on us. The world is tough and unforgiving, and often we feel inadequate. The reasons are infinite. Maybe the world teases you about something, looks down on you for some reason, or doesn't respect you for who you are. All these crushing limitations that saddle real life are obliterated in trading.
Starting out small is actually really important. If you start out trading with a lot of money, odds are you will lose it and get discouraged. The great majority of traders lose almost all of their initial capital at some point in their first year or so of trading. It is par for the course. But the hard lessons learned, and the skillset developed through those early losses, scale beautifully to any amount of money as your trading prowess grows. Even if you are blessed with lots of surplus capital, start trading small with an amount you can easily afford to lose. As your confidence and skills gradually grow, only then should you start trading bigger.
Trading feeds your brain, as it demands constant yet fascinating learning. I call myself "a student of the markets" as I continue to learn new things every day even after decades of trading. If I lived and traded through 10 lifetimes, I'd still be a student of the markets. We humans are all hard-wired to love to learn, to expand our horizons. And trading provides learning in droves. There are always new market situations to observe, new companies to analyze, and new factors driving the performance of stocks.
Trading is something I've loved my entire life. When I was growing up my father was a small-town banker, so he was naturally interested in the financial world. On Friday nights I remember watching Louis Rukeyser's Wall $treet Week on public television with my Dad. I remember him reading the Wall Street Journal, and encouraging me to do so when he came across articles that would interest a young boy.
Incredibly, trading also helps you socially! Not only does its built-in achievement bolster self-confidence, it makes you more interesting to everyone you meet. Over the decades I've talked one-on-one with many hundreds, maybe thousands, of people about trading stocks. And 99% of them are utterly fascinated by the prospect. And who wouldn't be? The markets are endlessly fascinating, and the allure of divorcing income earned from time on task is great. It is really fun sharing what you are doing in the markets with others, helping them see and seize the same stock opportunities you are.
Trading was always exciting, and it changed my life for the better in countless ways. I eventually founded my own financial-research company so I could study the markets, research stocks, and pursue my trading passion full-time. The financial rewards of trading are widely-known, I was blessed to become a millionaire before my 30th birthday. But even if trading hadn't made me rich, I'd still keep doing it for the vast intangible benefits. I won't stop trading until I'm dead.
Trading also yields great insights into other people. Sentiment, how the majority of other traders view the stock markets or any given stock at any particular time, is the most important driving force behind price movements. Trading success demands buying low and selling high, right? The only times stocks are low is when they are unloved and out of favor among the majority of traders. Conversely, stocks only get high when they are popular and the majority of traders want to buy them. Observing others' sentiment gives you fantastic insights into life in general, and human nature, that are extremely valuable.
But trading earnings aren't dependent on time. When you buy a stock, and it rallies to earn you profits, it doesn't matter whether you spent 1 hour deciding to make that trade or 100 hours. Trading opens up a wonderful new world where income is divorced from time! While it is true that trading is a learned art that requires years of discipline and experience to thrive in, the ultimate financial rewards it yields are wildly disproportionate to the time spent learning it. It breaks your income free from the chains of time.
The ultimate result of this liberation is the highly-sought-after goal of financial independence. If you start trading and stick with it for decades, you will get good. And trading mightily rewards experience, building fortunes for those who strive to master it. Eventually your trading will at the very least set you up to retire much earlier than you otherwise could. And since trading doesn't require excessive time (a few hours a week of research is often enough), it can free up many hours for you to pursue your life's passions.
Trading is a great equalizer, shattering all the limiting preconceptions that we burden ourselves with and others impose on us. The world is tough and unforgiving, and often we feel inadequate. The reasons are infinite. Maybe the world teases you about something, looks down on you for some reason, or doesn't respect you for who you are. All these crushing limitations that saddle real life are obliterated in trading.
Starting out small is actually really important. If you start out trading with a lot of money, odds are you will lose it and get discouraged. The great majority of traders lose almost all of their initial capital at some point in their first year or so of trading. It is par for the course. But the hard lessons learned, and the skillset developed through those early losses, scale beautifully to any amount of money as your trading prowess grows. Even if you are blessed with lots of surplus capital, start trading small with an amount you can easily afford to lose. As your confidence and skills gradually grow, only then should you start trading bigger.
Trading feeds your brain, as it demands constant yet fascinating learning. I call myself "a student of the markets" as I continue to learn new things every day even after decades of trading. If I lived and traded through 10 lifetimes, I'd still be a student of the markets. We humans are all hard-wired to love to learn, to expand our horizons. And trading provides learning in droves. There are always new market situations to observe, new companies to analyze, and new factors driving the performance of stocks.
About the Author:
Learning the stock market is not hard at: http://pressroom.prlog.org/LeeSmith/ and http://www.onlineprnews.com/rss/pr/?cid=2730
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