There is so much emphasis given to quick byte sized content and people are becoming less and less interested in giving things time. This is an attempt of mine to make things easier and less messed up for someone who just want to start. It is said that there is nothing more expensive than a cheap lawyer. Similar things can be said bout doing you own research. But that doesn't mean you can't make things a little more simpler to explain and make them easily digestible. I sincerely wish this quick guide will help you save hours of time, thousands of dollars and millions of potential ROI for the future.
Anyone can tell you a bunch of things and appear as if they know a lot. You may look at an argument and you may think of it as something that makes a lot of sense. You may even have a degree in economics and you may even come from a business related background. Let me tell you that people come with a lot more and get REKT in the markets.
"Everybody has a plan until they get punched in the mouth."
If you want to get started for real, I would suggest you put all your preparations aside and start up on a free simulator like https://www.investopedia.com/simulator That is my #1 advice for anyone who is going to start out trading. Go and make and account ASAP.
Asymmetry is Key
- How many dollars you made doesn't matter much
- How safe your investments are doesn't matter much
- What experts say rarely even matters
- Prediction models goes out of the window when a block swan even comes
- Loss aversion doesn't yield good results
- Opportunity aversion yield terrible regrets
Ronald Wayne was the third person involved with Apple Inc. He sold 10% ownership of Apple for $800 merely twelve days after he joined the venture. At the time of writing AAPL is worth $2.127 Trillion USD becoming the first public company to hit this goal. I discovered this fact while authoring this post. How hard was it to keep holding that little stake in a company that was trying to change the world? It seems the short sighted statistics obsessed people just don't seem to comprehend the massive ROI potential within the things shakes up or change the world.
The consistency in returns or the actual risk you face is a vanity metric. Look for the ration between risk and ROI. The higher it is, more attention the investment deserves. This is one of the main reasons I explicitly tell people to not invest in BTC. That asymmetry is much lower in BTC compared to something like HIVE which could 100X from the current price and still be only be worth 66.4% of the current marketcap of Ethereum which is a much worse platform for most smart contract related operations.
Less Can Be A Lot More
"Productivity" is certainly one of the biggest myths of modern times. You don't have to take my word for it when there is a 31 year old millionaire bringing $20 million dollars a year in revenue is speaking of the same idea. As a trader you are going to need more Zen like simplicity in life. That is actually what drove the design and UX philosophy of Steve Jobs which eventually lead to the creation of the most valuable publicly trading company on Earth.
If Nothing Convinces You - Try A Lecture With Case Studies
You may think this is something that mostly apply to doing business and what you need to take from this is that you shouldn't worry too much about trading indicators etc and that you need a simple and easily executable trading strategy. For you I present a simple piece of history:
Bill Gates owned 49% of Microsoft during the initial public offerings(IPO) in 1986
You can visit https://finance.yahoo.com/quote/MSFT for more statistics on the stock. The lesson is something that would hit harder when you yourself take some time and do the math by yourself. Take your time and compare the power of doing nothing with your trades vs reality of the modern financial rankings:
You can keep things tracked on https://www.forbes.com/billionaires From what I could find, Bill Gates owned 4.3% of MSFT stock by January 2020. If he owned the rest of 44.7% he would be worth more than the next 10 billionaires on the list combined. When ever you drown yourself in investing wisdom, diversification and trading strategies and all the cool stuff; let yourself be humbled by this simple fact. Wu wei ( 無為) is a piece of spiritual wisdom that can stand far above whatever you can learn from some Guru or some case study.
Finally Some Quick Resources before You Go
It can be hard to find quality content and good places to learn things. When you do find things, it could turn out to be an expensive subscription. These are few resources where you may find some valuable things to read. They may not be the best in the world (they often come with large paywalls). but I can guarantee that these will be so much better than mainstream financial media.
All of the above are free resources that you can try to get a better idea about the markets. On top of these I would suggest you check out https://nomadcapitalist.com/articles for more content on decentralizing your wealth and improving your options to liver a freer life with less taxes paid (which get used to fund Trillion Dollar Wars and massive global censorship). Simply knowing a few of these things will help you better plan for your future.
The Hedge Funds & Media Manipulate The Markets
I don't want to overwhelm you with too much information regarding trading platforms DEX etc. But I do have to strongly urge you to stay away from Robinhood as much as possible. Cheap is the worst kind of expensive. I might write about this on a later date. Just do your best to stay away from Robinhood or anything that seem too similar of a product.