Personal Finance
Do you have large debts store cards, credit cards, car finance and more.
Whatever the answer this is the first place to start before you even think of starting a trading career as you will need to free up some funds you don’t mind losing.
Yes, you need to break that mentality and childhood guidance you parents gave you about been wrong and striving to get it right and been right in everything you do.
I myself have really struggled with this aspect I have traded for a good 4 years and never really made a profit.
Why you ask!!!!
Because I didn’t stick to plan or strategy for my trading always beat myself up when it went wrong.
Then i spent days looking for a way of not been wrong. But it still happens.
There isn’t a reason, you are not wrong it’s just the market went the other way.
You protect yourself with a thing called a stop-loss it’s not a guaranteed price but it helps protect your account.
Trading is not to be dealt with lightly this is your hard-earned cash you are parting with there will be losses but controlled losses won’t stop you from fighting another day.
First Lesson in stock and shares
I could write pages and pages of info and bore you to death about the subject. But I wont as I am teaching you how to become a day trader not an investment long term trader.
To start you off below is a list of different types of trader.
Scalping
To open and close positions quickly from a few seconds to minuets to try and catch a profit from small movements from leveraged potions. High risk trading.
Financial Trading
Studying profit and loss sheets looking into turnover company profits and debts to see if the company will grow in the future. So a longer-term investment with a slower return.
Day Trading
Studying intraday info and watching for trends and signals to open a trade controlling risk and reward. usually only left open for a few hours to days depending on signals and trade.
Day Trading.
Is what i am going to concentrate on and teach you about.
My explanation of the market you could referer to it like the pandemic we are all in at the moment COVID-19.
In the UK everyone rushed out and purchased all the hand sanitiser.
What happened was levels become low and it became a commodity everyone wanted and was prepared to pay over the odds for it and some people did.
The need outstripped the supply this is a basic explanation its the same with the stock market.
Someone has seen the stock assessed it to there own needs and system and think that it’s cheap or overpriced and reacted accordingly.
There are hundreds of thousands of traders out there all with different opinions and views on the market.
Each with there own different strategies of how to get in and out of the market.
We are all just in it to make some money and I don’t think anyone has a 100% foolproof system as it’s just cannot be done.
I think I will let that settle in and move onto the next lesson.