Hey guys,
For me the most important thing in trading is having the right mindset.
– I have a group of friends and we talk about stocks a lot, and we all have the exact same knowledge
but still we have very different results.
– My step-father know nearly nothing about stocks but still he makes good profit
How come ?
Know your risk and stay in your zone:
If you buy a risky stock be prepared for big winnings but also more important for big loses. I have friend who called me at night who said that he can’t handle it anymore because his portfolio is -30% down and sold everything….. I saw it in the forum here as well.
If you buy a stock long-term and it dips after 2-3 years and you are unphased by it ! Congratulation !
Long-term thinking:
We are all greedy to some extent and want to make money quick! More trading will not make you faster rich. The right decisions will do!
Trading is 95% of the time reading and 5% executing not the other way around! I saw enough people who nearly trade their stocks weekly and jump from one to another. I have friend who called me and said he wants to make 1k a month with 2-3 trades a week and how is it possible to achieve…
Gambling:
I like to gamble with friends, but I always have a set limit of 20€-30€. My goal is having max fun and not winnings!
With trading I want the opposite, max money and not max fun therefore I don’t gamble when I trade!
There are people who gamble and won a lot of money, short term with options/future but this is gambling it’s like winning the lottery you need luck no skill. Stay away from it.
If you have a gambling mindset, trading is not for you!
Its money:
Don’t forget, it’s real money and probably your life savings! Never lose the feeling of it. It is very easy especially with day trading to lose the feeling for it and go full yolo into it.
If you always brooke and have always depts watch out ! Get your finance stuff together first!
Emotions:
Emotions and trading don’t go well together. You buy a stock because you believe you make money with it not because elon musk is really cute and driving a tesla is cool.
Role Models:
Always look up at people who are in the long-term more successful than you are. If you want to be like Jordan Belfort (The guy from Wolf of Wallstreet) I have bad news for you. He was a scum who ripped of people there is nothing to admire about this guy. I liked the movie tho.
Pick the right ones! These can even be your parents or someone you know!
Goals:
Having goals is important! Why are you doing it? My goal is to retire one day and have some good money left. If you want to drive a lambo in the next 2 years. ehm again I have bad news for you…
Summary :
– Know your risk
– Invest dont gamble
– Never lose the feeling of money
– No emotions
– Think (a lot) before you act
– Set goals
– Choose the role model
– Be patient
If you want to add something or ask, feel free !
Thank you
Leave a Reply