[mage lang="" source="flickr"]penny stocks millionaire[/mage]
Break the Myths of Stock Trading Education
The lure of fantastic trading profits has convinced a lot of people to learn how to trade stocks. Bear in mind though that it’s always easy to get caught up mainly in the glowing attraction of gaining financial freedom. This is perhaps one reason why some novice investors buy in on various myths. Before you start learning how to invest your money, you should first find out which beliefs you hold are mythical and therefore need to be corrected.
#1- Trading can make you rich quick.
It is entirely possible for people to earn thousands of dollars within a short span of time in the market. It is incorrect to believe though that the fastest and easiest way to become a millionaire is to learn stock trading. It will take a lot of time and effort for you to finally be able to secure decent profits. Even if you do manage to finish a comprehensive course there is no absolute guarantee that you will always be able to single out the best trades. Even the best educated traders can’t make the right picks all the time.
#2- A holy grail or silver bullet exists for trading and just needs to be found.
Some beginners believe that there is a magic bullet or holy grail in the form of a strategy or person. They expect it to tell them exactly what to do and what to trade every single time so they always emerge as winners. The sad fact is that no trading course can help you learn to trade stocks perfectly. The market is unpredictable in a lot of respects and no one can determine with absolute accuracy what tomorrow will bring.
#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 analysis is what you need more than anything else.
Professionals who are experts at analysis and technical methods may have an edge over others. Technical expertise however is not the only key to becoming the best trader in town. What is even more crucial than anything else is psychology. The frame of mind that you bring with you when you begin to trade can affect a great part of your chances of winning or losing. To gain real profits, you need to be logical, disciplined and confident. This can only come as a result of following a reliable system or plan.
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.
Timothy Sykes Covestor – Penny Stock Millionaire