I’ve made a living as a Stock Trader for over 15 years, and have really learned the ins and outs of the business. But I didn’t make my start at a big brokerage firm that taught me everything through slick training course. I made it through trial and error, taking seminars and classes and learning as I go.
While I may have taken longer to succeed using this self taught method, it has given me a lot more real world knowledge of stock trading than I would have gotten following the one process taught by my employer. For one, I have found a number of myths that crop up again and again when talking to people about stock trading. Here are three of them:
The first misconception I’d like to dispel is that only certain types of people make successful stock traders. True, stock pickers (those guys who pick the big winners by consistently analyzing the market) are more often than not left brained thinkers , which is probably how this myth originated.
But there really is something in stock trading for every type of thinker. If you aren’t a left brained analytical type, you just need to find a process that works well for you. I am definitely right brained, and I am being completely honest when I tell you I would hate to sit around and analyze stocks all day. Despite this, I have made a great living trading stocks. Anyone else can too.
Second, is the underlying belief that stock trading is risky, even riskier than owning your own business. True, people have lost their shirts in the stock market, and those are the big splashy stories we all hear that frighten a lot of people away.
But I have learned that if you have the right process in place for setting your stops and limiting your risks to a level that you are comfortable with, it can really be a very low risk profession. For example, I have created a system for myself that allows me to trade with a 75% or more success rate, which is fantastic! I know of no other business that can give me that kind of low risk situation.
Finally, I hear again and again that to really make money in the stock market you must commit to it full time and then some. And I agree, this is absolutely true for some types of trading and particularly if you don’t have a good stock picking service. Then you have to do all the leg work in a fast paced environment. That does take a lot of time.
However, rest assured it is possible to make a full time living trading stock for 2-4 hours a day. What you do with the rest of the day is up to you! The trick is to find a process that meets your comfort level of risk and is very efficient with your time. There are a lot of courses available and I agree it can be intimidating to find the one that’s right for you. Investigate several choices and make sure to ask lots of questions before signing up. If you don’t get satisfactory answers to your questions, move on fast, customer will not improve once they have your money! If you research your options knowing the right process is there for you, you will be on your way to success at stock trading before you know it.
