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Learn to Trade Stocks and Break the Myths

  • Written by Syndicated Publisher 51 Comments51 Comments Comments
    May 14, 2010

    Learn Stock Trading

    It’s not a secret that people want to learn how to trade stocks because of the potential to earn amazing trading profits. Do take note though that lots of people get too embroiled in the idea of making great financial gains. Paying too much attention to earning rather than to the process you should use to get there can lay the foundation for destructive mythical beliefs. Before you run the risk of throwing good investment money away, you should first thresh out the errors in your belief system.

    #1- It’s easy to get rich quick.

    It is a fact that lots of investors earn thousands or even millions just trading stocks. They can earn this much in less than a year. It is not safe to say though that you will immediately become a millionaire once you learn stock trading. You have to exert a great deal of effort to be able to truly reach high profit goals. Keep in mind though that finishing a trading course with excellent grades is not an absolute assurance of future success. Even the cream of the crop can stumble on bad trades from time to time.

    #2- You can be sure that there is a holy grail or a perfect guru.

    There are traders who continue to believe that somewhere out there is a magical silver bullet or a flawless trading guru. They expect these to provide accurate trading advice or tips that will always generate profits. It’s about time people found out though that there is no such thing as a holy grail in trading. No person or trading course can help you learn to trade stocks with perfect accuracy. There is simply no telling where the market will go.

    #3- Losses can be completely prevented.

    There is no way that trading losses can be prevented all the time. This is true even for those who have learned to trade with great skill and mastery. Hence, it is a must that you psychologically get ready for the possibility of losing some. At the same time though, you should be aware that you don’t have to lose too much. Although loses are not entirely preventable, you can prevent eroding your entire trading float. Courses that help you learn stock trading are supposed to include sections on how to manage risk well enough to prevent total and absolute loss.

    #4- Technical skill is the most important factor to master.

    Obviously, traders who excel in technical analysis are at an advantage. This doesn’t necessarily mean though that only savvy analysts can conquer the stock market. You can become an even better trader if you paid more attention to your trading psychology. Your mental and emotional states are what greatly influence trading outcomes. The most ideal state to have is a logical and disciplined one. This state stems from confidence which in turn comes from having a reliable system.

    Undoubtedly, you are so much closer to financial prosperity once you learn how to trade. Correcting your belief system however is very important even before you take the step towards trading education. With the right facts in mind, you can create the right expectations and prevent severe losses.