Trade futures the futures guys say trade equities. Trade on ''inside information''. Buy stocks because they hit a week low. Back a sure thing on someone else's suggestion. Set and forget emphasis on ''forget''. Buy a stock that is up 20 per cent on the day.
Buy a stock that is down 20 per cent on the day. And finally, this old chestnut: Go on a course called ''Learn how to trade and make money!
Let's focus on that a minute. There are a lot of ways to receive a share-trading education these days, so many places to put in your credit card number and receive instant sharemarket gratification. The bar for successful sharemarket teachers, it seems, is a lot lower than the bar for successful sharemarket traders; for the uninitiated it is a minefield of heroes and charlatans. So to guide you on your way, I have put together a list of things you might like to consider before forking out for guaranteed trading success:.
You may think you are buying a solution but you are not. You are buying an introduction to a lot of work. It is like joining a gym. You'll likely try it for a month and stop. Enter the trading marathon - it is a marathon, whatever they promise - without enthusiasm, interest, passion and a purpose and you will join the many who have wasted their money and time. You need purpose and that means having a very specific goal to inspire you.
Without that, can you seriously make trading a part of your life? To make that clear, you need capital you can risk. Come to the trading game out of financial necessity, with capital you can't afford to risk, and your ''loss aversion'' will doom you to failure. It's a guaranteed way to get poor quick. Trading is about exploiting a small edge over a long period.
This alter purpose is why there are so many ''free'' seminars. Because they're a forum for hot leads and that's how they see you. There is no standard pricing.
Some prices are dictated by the size of the balls of the people selling it to you, not the product. Check what you get. Many courses take an extraordinarily long time to cover basic principles, principles that could be read in a book in half the time.
Many courses sell technical analysis, which is not necessarily what you need as an introduction. What you need is to learn to trade. There are some really good products and trading courses out there. If you are serious about trading, it can be done and you need to seek out those who can teach it.
I could name a few. But before you buy anything, ask yourself some simple questions. What am I buying? What will I get? What are they really selling? Could I read it in a book? Am I really interested? Do I really have the time? Do I really have the need?
Do I really want to be a trader all day every day? Because, if you want to succeed at it, that's what it will take. Marcus Padley is a stockbroker with Patersons Securities and the author of the daily sharemarket newsletter Marcus Today. For a free trial, go to marcustoday. So to guide you on your way, I have put together a list of things you might like to consider before forking out for guaranteed trading success: Get the latest news and updates emailed straight to your inbox.
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