Somebody has rightly said -
"If you don"t know where are you going... you will probably end up nowhere."
So the question you should ask yourself is:
Why should I start trading in the stock market?
Is it the fun and excitement? Do you want to be rich? Perhaps you enjoy status of being a trader? Do you want to do a part-time trading or a full time trading? Or maybe you just want to secure your future.
For some traders, it"s an escape. They hate the world around them-their job, their boss, their spouse. No matter what is your reason behind trading, but trading has to be about only one thing...
...Making A Profit
But making profit doesn"t mean that you"ll double your money every few weeks and start dating Hollywood movie stars with your newfound wealth. If anyone tells you that, please laugh at him loudly.
Trading is NOT A Get-Rich-Quick Scheme. It takes time to earn money and become successful. The most basic problem that we have found most traders struggling with is lack of direction.
Traders come into the market hoping to make money, but without any strategy. Many traders fail because their plan is too shallow or they don"t even have a plan.
Planning is a critical ingredient in a successful trading decision. It is rightly said-
Failing To Plan Is Planning To Fail".
We know quite a few traders who have made a tremendous amount of money in the market, but within a year or two, they lost all of it.
What Is The Reason...!!
These traders viewed trading as a "Get rich quick scheme" and not as a real business. Their only true objective was to make as much money as possible, without any plan or consistency.
These traders believe that the "End justifies the means", which means that making money, despite bad habits and reckless trading is good enough for them.
They end up losing everything.
Trading is a perfect business. And the best part is you can do it full time as well as part time. The choice is completely yours. But both type of trading requires a different set of rules, strategies, mindset and lot many things.
We will talk about that in the later section of this book. But for now, you must decide- Why do you want to trade?
Close your eyes and visualize what being a successful trader means to you. See yourself doing trading and making money consistently days after days and week after weeks.
Imagine the feeling of happiness it creates when you see money keeps on going to your bank account. How does it feel getting richer every passing day?
This is really a great exercise and works in almost any situation. It helps you formulate a solid, worthy, personal goal and keep you motivated and focused throughout this EBook.
ASSIGNMENT FOR YOU
Write down one primary goal you want to accomplish by trading in the stock market.
Take that goal and write it (-It is important) on a 3 X 5 card and put it where you see it when you wake up in the morning and before you go to sleep each night.
If you really want to burn this goal into your subconscious mind you should read it aloud each morning and before you go to sleep each night.
Believe me, this technique really works. This is not some "corny" technique I am writing here- this is one of the key technique Napoleon Hills teaches in "Think and Grow Rich", the classic book on how to turn your thoughts into riches.
You can see this technique live in action in some of the books written by marketing guru- Yanik Silver.
So do you have your goal clearly stated and written down?
Good.
That"s all for now. I"ll be posting some more articles in the near future.