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The stock market is not for stupid people who blindly follow what others do. It is not for chickens but for honey badgers. It is not for those who go with the flow but those who dare to buy when everyone is selling and dare to sell when everyone is buying.
In my past article, It’s Raining Rejections my dream of becoming a stocks trading superhero was nipped in the bud. My application to open a trading account was rejected and I was not given the chance to even get started with my trading career. I have never traded stocks in my entire life but I know I will succeed in the stock market for the following two reasons:
1. I do not do anything unless I know what I am doing.
2. I hunger to become a winning investor.
The problem with some people trading stocks is they don’t have any idea on what they are doing. Some buy stocks based on how popular the stocks are; they confuse trading with elections. Some buy and sell stocks based on what their favorite TV personality told them to do; they confuse trading with religion. Some people who trade stocks stubbornly hold onto their losses while their losses are small. Because they are emotionally involved with their trading, they continue to hold onto their losses until their losses get bigger and cost them a lot. They confuse trading with divorce. The stock market is not the lottery where you choose a random number and expect to win millions. You need to put in hard work and that hard work includes learning all you can about the stock market. Read books, attend seminars and learn about the concepts, principles and theories the stock market is built on. Learning those concepts, principles and theories is good for your brain and eventually will be good for your pocket, too. By learning, it is only then you are able to make informed and intelligent decisions essential to success in trading.
Stocks trading is risk-laden. Knowing what you are doing is important and certainly helpful but it will not guarantee your success. Even the most successful stocks investors suffered staggering losses in their trading careers one time or another. There is an inherent risk in trading that you just cannot eliminate no matter how knowledgeable you are because if you can, then you should probably change your name to Prophet. That inherent risk is the reason why it is equally important to hunger becoming a winning investor. It is inevitable that you will suffer losses in your trading career but if you hunger to become a winning investor you will always find courage and positivism to continue trading. You will not ever give up. Your persistence, hard work and determination to succeed will be the most important element in your success and indeed, eventually you shall see that little acorns can do grow into giant oaks.
Author Bio: This article is a silent witness to the awesome writing talent (or lack of it) of Arnel Ariate, author of Money Soldiers. He puts crazy in finance to make it fun.