The financial market as it has always been preached is not a get rich quick arena. So many people make the mistake of thinking it is a place to escape poverty. This mentality has ruined a lot of people and has sent more people into being bankrupt. Life they say is a teacher but learning to lose in the financial market the hard way is not something everyone can tolerate or should I say endure.
So, how do we make profit?
- Understand the market: In as much as the market is very large and very voluminous, having an understanding of the market is a tool that will assist in minimizing loses. The market cannot be understood completely but the knowledge of somethings will be very helpful in reducing loses.
- Learn the Fundamentals: Fundamental Analysis is what moves the financial market. It is the fuel with which the market moves. This is much and not limited to geopolitical events, Micro as well as macro economics, Interest Rate, Employment rate, Consumer spendings among other things. In as much as this is the fuel that keeps the market in a continuous motion a very good knowledge of it is very much required to win more than losing.
- Learn the Technicals: Leaning the Technical Analysis is like learning history. A popular saying that history tend to repeat itself is not a mere saying. A very good understanding of price action, support and resistance, double top and double bottom, candlesticks, among others are things that one has to get his/her hands dirty with. A very good knowledge of Technical Analysis is very important for a winning minded trader.
- Self Discipline: A want to be good trader must be self disciplined. Having a lot of patience is a very good virtue for this kind of business. One has to know when to be a player and when to be a spectator. One has to know when to strike and when to defend. Patience plays a huge role in the life of want to be a successful trader. This is rolled round self discipline.
In conclusion, it is very important to to be ready to educate oneself and keep being update. Do not let the market teach you the hard lesson the hard way. Be good and be better on daily basis
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