The truth: The hardest pill to swallow.
Here's the bottom line: Trading isn't for everyone.
It's fun to make money off of guessing where the market will move to. And people have become billionaires doing this.
But is it for YOU?
You see, there could be s billion people making money through a particular thing. But when you try it, it just doesn't seem to click.
For me, this was stocks. I wanted fast money, and while there were those making $1000 a day just trading stocks, I was struggling to break even. I made a few profits here and there, but ultimately lost them to the market eventually.
I realised that stocks wasn't for me because I couldn't get it to "click". I needed fast money. Stocks wanted patience. I didn't have it. So stocks weren't for me.
I now trade crypto, where I have found a great deal of success with very minimal loss, all from following a simple plan. But that's for another post.
So how do you know if you should trade crypto? Haven't there been people that bought, held, prayed and because trillionaires?
Yes. But the time to buy, hold and pray is long gone.
All the good projects are already here, and buying and holding a trash coin will lead to teary eyes and "I wish I didn't " in 3-5 years from now. Your money is better off in the bank where your interest rate is 1% of inflation.
The only other option is to trade. But is that for you?
Ask yourself these questions first:
- Can you handle seeing all your investment come to nothing in a few hours or even minutes?
- Can you calculate your potential profit, broker fee and ROI in less than 30 seconds before deciding on a trade?(most people don't do this, and it's no wonder why most people are unsuccessful)
- Do you like the fast paced stuff? Or are you a check every 1 year kind of person?
- Do you mind looking at charts everyday, and doing technical analysis multiple times a day? Or do you prefer to do it once a day and forget about it?
Answer those questions truthfully. If you can't do most of the stuff there, then trading simply isn't for you.
If you try it, you will burn out, lose all your money and be an emotional mess, because that's how it is.
You need to get your emotions in check before trading. Stick to your trading plan no matter what. Even if the market is moving 1000 dollars a second, but it doesn't coincide with your plan, skip the moves. It'll not make you rich, but your emotions will be in check, and your mind would be sound. And trust me, that's worth more than any amount of money.
Also, know why you are trading.
Are you trading to make quick profits off of volatility? Or do you love one large profit instead of many multiple profits?
Think all these things through. Your mind is as important as your money.
If you do however answer yes to many of those questions, you would need the following to get started:
- A good laptop or desktop: Don't fall for those guys who tell you you need 5 monitors that run at 5K each and shoe different graphs at once. Not only will you lose money due to confusion, you'd lose money due to the fact that each of those screens cost more than $1500 each. I personally use a MacBook Pro 2015. I have been using it since 2015, and it works perfectly for my trading needs. It's fast and efficient, and I can carry it around. I have no trading station, despite the fact that I can afford one now.
- A great broker: Your computer is too puny to access the blockchain directly. So your broker does it for you, by bringing sellers and buyers together in one place. They then collect commissions on every trade you make. I recommend Binance. It has never been hacked, has low fees and is super easy to use.
- Capital: This is where the sore point is. Most people believe that $30 is a great amount to start with. Or $1000 is way too much money to invest with. All those thoughts are crap. You need money that can make you good returns on serious moves. I recommend that noobs start with no less than $500 in as trading account. Anyone starting with less will be frustrated. Imagine risking $100 to make just $1. Not smart at all.
And that's it! If you paid any attention to this post, you'd know if you're ready or not, at least to some extent.
Thanks for stopping by.