So you want to trade and make money but you don't have the capital! That is a good thing! No I'm not crazy! I wish I had a nickel for every person I have met in my career that had the money to jump into the markets and regretted that they did just that. They all agreed, had they taken the time, made the effort and invested in a trading education before jumping into the markets they would still have their capital to trade with successfully.
In order to trade successfully, you must become a master at certain key areas of trading. Risk Management, Technical Analysis, Fundamental Analysis, Trading Psychology, Building a Trading Plan, Execution and other critical areas. If you have not mastered these key areas, you are putting your money at risk and should not be trading.
So here is why it is a good thing not to have trading capital at this time. It forces you to put things in the correct order. Getting a solid trading education is the first step, not the second step to starting a trading career. Just like someone who wants to be a doctor, you wouldn't start by seeing patients, make mistakes and then go backwards and get an education. Would that make any sense? Of course not!
If you start getting an education now, it might be a year or two before you are ready to begin trading real money. However, at that point you will be savvy enough to know how not to loose your money and not get wiped out before you have a chance to be successful.
As far as having money to start trading, this will give you time to start building capital, that is not bill money and allow you to have the piece of mind that you are using money that you can put at risk without hurting yourself or your family. You don't have to have thousands of dollars to get started. You can get started with much less and build your account with intelligent trades and good risk management.
I promise you this, if you jump into trading with out getting a solid education first, you will lose your money, have many sleepless nights and regret that you did not do this the right way. Get rid of your ego and stop fooling yourself to think you can do this completely on your own. You'll never get started unless you take the first baby step!
In order to trade successfully, you must become a master at certain key areas of trading. Risk Management, Technical Analysis, Fundamental Analysis, Trading Psychology, Building a Trading Plan, Execution and other critical areas. If you have not mastered these key areas, you are putting your money at risk and should not be trading.
So here is why it is a good thing not to have trading capital at this time. It forces you to put things in the correct order. Getting a solid trading education is the first step, not the second step to starting a trading career. Just like someone who wants to be a doctor, you wouldn't start by seeing patients, make mistakes and then go backwards and get an education. Would that make any sense? Of course not!
If you start getting an education now, it might be a year or two before you are ready to begin trading real money. However, at that point you will be savvy enough to know how not to loose your money and not get wiped out before you have a chance to be successful.
As far as having money to start trading, this will give you time to start building capital, that is not bill money and allow you to have the piece of mind that you are using money that you can put at risk without hurting yourself or your family. You don't have to have thousands of dollars to get started. You can get started with much less and build your account with intelligent trades and good risk management.
I promise you this, if you jump into trading with out getting a solid education first, you will lose your money, have many sleepless nights and regret that you did not do this the right way. Get rid of your ego and stop fooling yourself to think you can do this completely on your own. You'll never get started unless you take the first baby step!
Great post .... Super like.
ReplyDeleteThe conclusion you made at the end, was so fitting ... ;)
Regards,
H.