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Casual Articles - So You Want To Become A Share Trader?
If you`ve been online for more than a week, you`ve probably already seen them. Ads that promise great wealth, in little or no time, for little or no work on your behalf. They then go on to tell you how simple and easy it is to work from home, being your own boss and setting your own hours.Sounds great, doesn`t it? But is it actually true? Ok, so you get to decide your work hours, but let me tell you, there`s a LOT of hours involved here, and a LOT of hard work, and even then, you may not succeed in making enough money to quit your day job (IF any at all...)There are tons of business opportunities out there to get involved with. Here`s a list of some of them, with their "TRUE" colours. I`m NOT saying every individual opportunity IS a scam, but a lot of them are, and you need to do your homew
What am I prepared to do to become successful?
The first and most important is to study, study, and more study in fact you never stop learning. Allocate time to do this on a regular basis.
I have experienced the largest learning curve in my entire life since I became serious about becoming a share trader. And the biggest problem I have faced is “The person in the mirror” Myself! For I found that the emotions of “Fear and Greed” were the first things that I had to deal with.
The person in the mirror can be your biggest enemy or friend. You will find that your emotions, attitudes will govern how you trade and react to market conditions. I am not going to go into any details here as you will find past articles amply covering these areas. As I have stated
Virtually any type of organizational change involves role transitions of some type. In light of role transitions, it is almost natural for employees to resist major changes in the workplace environment. Some contend that resistance to change is “natural”; they contend that this resistance is instinctive; that humans have a desire for perpetual stability.Many processes recognize that resistance. Individual interviews provide an environment where individual stories can be heard in a safe environment. Whole Person Process Facilitation can be used in focus groups with an appreciative inquiry and vision based diagnosis approach to identify resources the organization already possesses that are currently utilized, under-utilized, or have been previously unrecognized.Open communication, honouring
Well it’s time for a reality check, for things are not as they seem. Sure there is money to be made especially in a bull market, (rising share prices.)It can be very easy to make money. The drawback is that the beginner is unprepared for the inevitable downturn in the share market.
Before they know it they have suffered a couple of reversals only to find that hey have lost a goodly proportion of their capital and having burnt their fingers severely, leave the market very disillusioned never to return.
The market place is littered with the broken hopes and dreams of the would be share trader. And if again in the future they decide to try their luck again they are doomed to failure because their attitude and training hasn’t changed from their last foray into the market.
So What Is The Answer?
Now taking the “Lady Luck” factor out, you are rewarded proportionately to the amount of effort you put into learning the foibles and idiosyncrasies of the share market, and learning that one of the biggest problems you will face in the market is “Yourself.”
So What Do I Have To Do T o Become Successful?
Firstly there are a few things to look at before you start trading in the market. You need to ask yourself a few questions and be very honest in your answers.
1. Why do I want to trade in the share market?
2. How much capital do I have to invest?
3. How much can I afford to lose if things do go the way I’ve planned?
4. How much profit do I want to make? (Be realistic.)
5. What am I prepared to do to become successful?
6. Where can I get the information that I need to get started?
7. Which broker shall I use? How much will I pay for their services?
8. How much time can I spare to be a share trader?
We shall now look at the above questions in more detail.
Why do I want to trade in the share market?
The first thing that comes to mind is obviously to make money and not to lose it too quickly. But really, only you can answer this question. But again be honest with yourself.
How much capital do I have to invest?
That depends mainly on you and your financial commitments. But to be practical you would need around the $2,000 mark at minimum to start with.
One reason is brokerage .You will be paying around $50. That’s $25 for buying your shares and $25 for selling them. So that is 2.5% profit you have to make to break even. Therefore if you made 10% profit which equals $ 200.00 less $50.00 for brokerage, this will leave you a profit of $150.00 or 7.5% clear profit. (I haven’t allowed for capital gains tax in this.)
How much can I afford to lose if things do go the way I’ve planned?
Personally I would have a stop loss in place for around the 7.5% to 10% level. (For more information on stop losses see past post called “stop losses”) But this is an individual thing as to what you are comfortable with. Also this depends on how large the amount is that you have invested in the first place.
How much profit do I want to make?
A million I hear someone say. Now that is a nice round figure but there are a few things to take into consideration first. One is to realistically pick a time frame in which you intend to achieve your monetary goal. The amount you have to invest plays an important part as well. Because the smaller the stake you start with the longer it will take you to make your financial goal. So be realistic in your goals and expectations.
Because of financial constraints I had a personal goal to begin with of only $100.00 a week profit. But over time I have built the original $500.00 portfolio to around $12000 in around three years. I have continually added my profits back in. And I have had a few losses and minor setbacks along the way.
What am I prepared to do to become successful?
The first and most important is to study, study, and more study in fact you never stop learning. Allocate time to do this on a regular basis.
I have experienced the largest learning curve in my entire life since I became serious about becoming a share trader. And the biggest problem I have faced is “The person in the mirror” Myself! For I found that the emotions of “Fear and Greed” were the first things that I had to deal with.
The person in the mirror can be your biggest enemy or friend. You will find that your emotions, attitudes will govern how you trade and react to market conditions. I am not going to go into any details here as you will find past articles amply covering these areas. As I have stated
FOREX Day traders are loved by brokers these are the traders they simply want more than any other type of trader.FOREX day traders are wary of brokers, because they think they pick their stops off and that’s why they love them – but the real reason is:Day traders are guaranteed to lose their money without any help from a broker. I used to work in the back office of a broker and we factored them in as losing straight away and a big fat profit for us.So here are the reasons we loved them and other brokers do to:1. Day trading by its very nature doesn’t workTrying to trade in short time spans of a few hours or a day and to try and measure where prices are going is ridiculous.All short term volatility is random and prices can and do, go anywhere.We traded severa
So What Is The Answer?
Now taking the “Lady Luck” factor out, you are rewarded proportionately to the amount of effort you put into learning the foibles and idiosyncrasies of the share market, and learning that one of the biggest problems you will face in the market is “Yourself.”
So What Do I Have To Do T o Become Successful?
Firstly there are a few things to look at before you start trading in the market. You need to ask yourself a few questions and be very honest in your answers.
1. Why do I want to trade in the share market?
2. How much capital do I have to invest?
3. How much can I afford to lose if things do go the way I’ve planned?
4. How much profit do I want to make? (Be realistic.)
5. What am I prepared to do to become successful?
6. Where can I get the information that I need to get started?
7. Which broker shall I use? How much will I pay for their services?
8. How much time can I spare to be a share trader?
We shall now look at the above questions in more detail.
Why do I want to trade in the share market?
The first thing that comes to mind is obviously to make money and not to lose it too quickly. But really, only you can answer this question. But again be honest with yourself.
How much capital do I have to invest?
That depends mainly on you and your financial commitments. But to be practical you would need around the $2,000 mark at minimum to start with.
One reason is brokerage .You will be paying around $50. That’s $25 for buying your shares and $25 for selling them. So that is 2.5% profit you have to make to break even. Therefore if you made 10% profit which equals $ 200.00 less $50.00 for brokerage, this will leave you a profit of $150.00 or 7.5% clear profit. (I haven’t allowed for capital gains tax in this.)
How much can I afford to lose if things do go the way I’ve planned?
Personally I would have a stop loss in place for around the 7.5% to 10% level. (For more information on stop losses see past post called “stop losses”) But this is an individual thing as to what you are comfortable with. Also this depends on how large the amount is that you have invested in the first place.
How much profit do I want to make?
A million I hear someone say. Now that is a nice round figure but there are a few things to take into consideration first. One is to realistically pick a time frame in which you intend to achieve your monetary goal. The amount you have to invest plays an important part as well. Because the smaller the stake you start with the longer it will take you to make your financial goal. So be realistic in your goals and expectations.
Because of financial constraints I had a personal goal to begin with of only $100.00 a week profit. But over time I have built the original $500.00 portfolio to around $12000 in around three years. I have continually added my profits back in. And I have had a few losses and minor setbacks along the way.
What am I prepared to do to become successful?
The first and most important is to study, study, and more study in fact you never stop learning. Allocate time to do this on a regular basis.
I have experienced the largest learning curve in my entire life since I became serious about becoming a share trader. And the biggest problem I have faced is “The person in the mirror” Myself! For I found that the emotions of “Fear and Greed” were the first things that I had to deal with.
The person in the mirror can be your biggest enemy or friend. You will find that your emotions, attitudes will govern how you trade and react to market conditions. I am not going to go into any details here as you will find past articles amply covering these areas. As I have stated
Working at heightAfter the fall – Suspension Trauma/Orthostatic intolerance - the need to plan for rescueRoger H Smith of Leading Edge emphasises the importance of thorough rescue planningPlanning for rescue and emergencies when employees work at height is a legal and moral responsibility for all employers. Regulation 4(1) of the Work at Height Regulations 2005 obliges employers to ensure all work at height is properly planned, and Regulation 4(2) notes that planning of work includes planning for emergencies and rescue.Often we think of rescue as simply a matter of dialing 999, but calling the local fire brigade does not add up to an effective rescue plan. Response times can be too long and not all brigades have the capability to rescue from height.Even i
7. Which broker shall I use? How much will I pay for their services?
8. How much time can I spare to be a share trader?
We shall now look at the above questions in more detail.
Why do I want to trade in the share market?
The first thing that comes to mind is obviously to make money and not to lose it too quickly. But really, only you can answer this question. But again be honest with yourself.
How much capital do I have to invest?
That depends mainly on you and your financial commitments. But to be practical you would need around the $2,000 mark at minimum to start with.
One reason is brokerage .You will be paying around $50. That’s $25 for buying your shares and $25 for selling them. So that is 2.5% profit you have to make to break even. Therefore if you made 10% profit which equals $ 200.00 less $50.00 for brokerage, this will leave you a profit of $150.00 or 7.5% clear profit. (I haven’t allowed for capital gains tax in this.)
How much can I afford to lose if things do go the way I’ve planned?
Personally I would have a stop loss in place for around the 7.5% to 10% level. (For more information on stop losses see past post called “stop losses”) But this is an individual thing as to what you are comfortable with. Also this depends on how large the amount is that you have invested in the first place.
How much profit do I want to make?
A million I hear someone say. Now that is a nice round figure but there are a few things to take into consideration first. One is to realistically pick a time frame in which you intend to achieve your monetary goal. The amount you have to invest plays an important part as well. Because the smaller the stake you start with the longer it will take you to make your financial goal. So be realistic in your goals and expectations.
Because of financial constraints I had a personal goal to begin with of only $100.00 a week profit. But over time I have built the original $500.00 portfolio to around $12000 in around three years. I have continually added my profits back in. And I have had a few losses and minor setbacks along the way.
What am I prepared to do to become successful?
The first and most important is to study, study, and more study in fact you never stop learning. Allocate time to do this on a regular basis.
I have experienced the largest learning curve in my entire life since I became serious about becoming a share trader. And the biggest problem I have faced is “The person in the mirror” Myself! For I found that the emotions of “Fear and Greed” were the first things that I had to deal with.
The person in the mirror can be your biggest enemy or friend. You will find that your emotions, attitudes will govern how you trade and react to market conditions. I am not going to go into any details here as you will find past articles amply covering these areas. As I have stated
Bankruptcy has long remained a mystical thing that everyone knew existed, but no one seemed to be very sure of how exactly it worked. Filing bankruptcy is a legal proposition and with that comes implications that carry beyond the actual bankruptcy case. Understanding the fall out of filing a bankruptcy case is important for anyone who is experiencing some pressure from financial problems.First of all, there is little to no truth to the claim that if you file bankruptcy you will never get credit again. In today’s competitive lending market, there are few perfect consumers and a whole lot of lenders. Thus, it is possible to find lenders who will take a risk on someone who has filed bankruptcy. The lending limits may be lower and the interest rates may be higher, but it is not the hopeless situati
How much can I afford to lose if things do go the way I’ve planned?
Personally I would have a stop loss in place for around the 7.5% to 10% level. (For more information on stop losses see past post called “stop losses”) But this is an individual thing as to what you are comfortable with. Also this depends on how large the amount is that you have invested in the first place.
How much profit do I want to make?
A million I hear someone say. Now that is a nice round figure but there are a few things to take into consideration first. One is to realistically pick a time frame in which you intend to achieve your monetary goal. The amount you have to invest plays an important part as well. Because the smaller the stake you start with the longer it will take you to make your financial goal. So be realistic in your goals and expectations.
Because of financial constraints I had a personal goal to begin with of only $100.00 a week profit. But over time I have built the original $500.00 portfolio to around $12000 in around three years. I have continually added my profits back in. And I have had a few losses and minor setbacks along the way.
What am I prepared to do to become successful?
The first and most important is to study, study, and more study in fact you never stop learning. Allocate time to do this on a regular basis.
I have experienced the largest learning curve in my entire life since I became serious about becoming a share trader. And the biggest problem I have faced is “The person in the mirror” Myself! For I found that the emotions of “Fear and Greed” were the first things that I had to deal with.
The person in the mirror can be your biggest enemy or friend. You will find that your emotions, attitudes will govern how you trade and react to market conditions. I am not going to go into any details here as you will find past articles amply covering these areas. As I have stated
Whether it has been thrust upon you by external market forces or it has simply bubbled up from the internal dynamics of your enterprise, change itself always presents opportunity for improvement. And in a knowledge based economy, change may be the only thing we can count on as small business people. So, if you want to stay ahead of the curve, you must embrace change as a necessary strategy for commercial success.Despite the inevitability of change, we spend a great deal of time and energy trying to stop it from happening or, at the very least, trying to slow its momentum, hoping to lessen its impact on our fragile yet cozy paradigms. However, small business owners should not overlook change management as a killer business strategy, for this is one arena where even the solo-preneur should h
What am I prepared to do to become successful?
The first and most important is to study, study, and more study in fact you never stop learning. Allocate time to do this on a regular basis.
I have experienced the largest learning curve in my entire life since I became serious about becoming a share trader. And the biggest problem I have faced is “The person in the mirror” Myself! For I found that the emotions of “Fear and Greed” were the first things that I had to deal with.
The person in the mirror can be your biggest enemy or friend. You will find that your emotions, attitudes will govern how you trade and react to market conditions. I am not going to go into any details here as you will find past articles amply covering these areas. As I have stated before the amount of profit that you make is directly in proportion to the effort you put in.
Where can I get the information that I need to get started?
Too easy! Well you have made a fantastic start by just reading this article plus there are over “400”just in this web site alone. All you have to do is take the time to go through the different categories and pick out the ones that help you the most. And they are all free!
If the information you are seeking is not there, give me an e-mail and I shall endeavour to find it for you, or failing that I will tell you where to go to get it.
Which broker shall I use? How much will I pay for their services?
This will depend on what sort of services you require. Usually the more “bells and whistles” you want the dearer the broker. The one I use at the moment is E-TRADE. I am quite happy with the services that they provide as I have a preference for doing my OWN research so if I make a mistake then I have only myself to blame.
8. How much time can I spare to share trade?
This depends on the commitment you are willing to make plus the goals you want to achieve. But the rewards definitely reflect the amount of effort that you put in to it.
But of most importance is that your life should not revolve around the stock market. You need a balance even when you have become a professional share trader.
O f course there are questions that I haven’t covered, but theses are the basic ones that will help you to find your footing on the rocky road to financial freedom.
Happy Trading!
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