The huge amount of money flowing in and out of the stock market has lured many new traders and investors into the stock game. The investors are what we call buy and hold. They are looking at fundamentals such as earnings and products. Investors can hold a stock for as long as of twenty years, but as little as one year whilst they hope the market rises and increases the values of the shares they have purchased.
The difference with traders is that they are more short term focused. Day traders can hold from 1 minute to perhaps 1 hour while swing traders hold onto their stock anything from 1 day to weeks. What helps traders trade this way is other tools than fundamentals as they don’t help so much. Examples of these tools are technical analysis or support and resistance. The common denominator is always the same with these types of traders even though the tools are different. They want to book profit on their trades but sadly that is rarely what happens as most people lose money to the stock market. Having extra costs contributes to these losses such as trading commissions and platform fees. How can you improve your odds? The answer to this is by investing in a reputable stock market course. However, let me first tell you why traders lose money.
How Come People Lose Money Trading?
One of the main reasons is that it is so difficult to predict the way a stock will go and this is especially true for short term trading. Despite that the stock market is made up for repeatable patterns there are also random moves which will cost you money. The worst that can happen for a new trader is actually that he/she makes money on the first lot of trade because this make them believe they are successful based on skill and not luck. Due to the first time luck, they think they will be loaded within weeks and add a huge amount to their next trade. As like with anything in the world luck runs out and they are now losing a lot of money. They do not understand why as they were so good. They blame the market and get angry and revenge trade which then lead to even more losing trades. As well as losing their ‘lucky’ profit, they also lose the trading capital.
Ways of Increasing your Odds of Success
The only way to increase your odds is to but a good stock market course. This will teach you how the market works and give you many tips of how to make it in this business. Thinking that you can just enter the markets after reading a few articles from CNBC is just naivety and won’t help you. It really is a case of retrospective trading as its only when traders lose money that they realize that they should have learnt how to do it first!
What Is A Good Stock Market Course?
You have to learn the bare minimum if you want to trade the market. This is where a good course will help as they will outline the basic elements of trading. The trader should know a little bit about technical analysis or chart analysis as well as how to use stop loss. These are just meant as a foundation for the trader in which he/she can built on but regardless of that the trader should already now be able to minimize the losses using these tips.
How Do You Get The Most Out Of Your Education?
Show up with an open mind and be prepared. You can help yourself by finding out the most used phrases and terms in trading as that will hold you in good stead for future learning. Write down questions while taking the stock market course and make sure you get proper answers to those questions. Feel happy with any answer you get to your questions. At the end of the day, its your money so get the most out of it!