Becoming a trader is a serious decision that we want to really think through. We have to make this decision with a clear head and with no hesitations and no questions. But just agree with me that the more we think about getting into trading the more questions we have. In the end there are only several questions that we need to really answer.
And no. I am not going to answer them for you. I am just going to explain to you how you approach the main question in a way the most beneficial for you.
1. Why do you want to become a trader?
2. Why not go into investment banking?
3. What would you do with the money you earn?
4. Are you ready to answer questions?
5. Are you ready to give investment advice?
6. What is your risk tolerance?
7. Are you ready to fail?
1. Why do you want to become a trader?
You need to answer yourself why are you interested in trading. Is it for money? For further self-development or simply because it is soooo popular with your golf buddie right now? Well, if it is the latter I am going to disappoint you right there. It is not a reason to get into trading. You need to set your priorities and reasoning straight. Do not follow the fashion. Remember that trading is risky and you are going to have to need to pay attention and time to it.
2. Why not go into investment banking?
Are you interested in trading itself or simply in making money? If so, there are other options of how you can make big money outside of your office. And not all of them are as scary and risky as trading. But here it is important to understand that trading might be your fastest way to get rich. And the most interesting one.
3. What would you do with the money you earn?
So you became rich and powerful trader. What is next? What are you going to do with all that money? Do you have a plan? An idea for business? An investment proposition or program? If you have no answers to these questions, finding them is your top priority.
Why?
Well, it might be exciting to store your money under your mattress but a certain point we need to learn to make money work for us. Investment, more trading, percentage loans. You have to make maximum profits out of the situation.
4. Are you ready to answer questions?
A lot of people are going to come to you for advice once you start trading. A lot of people consider us the best informed. And while that is true – we read news more than a lot of people as our money depend on it, that doesn’t mean that we are ready to give advice and to answer hard economic questions. We are just the same as the rest of the people. We just know a little bit more about the current state of things.
But you have to be ready for the questions to come. That is just inevitable.
5. Are you ready to give investment advice?
Just the same as the previous point. But with stocks. Are you ready to withstand the flow?
6. What is your risk tolerance?
Are you ready to withstand huge risks? Do you think it is going to pass you by? Nope. No it is not. Trading is a risky endeavor at its core. And there is no way that you are going to avoid risking your money at any point in time. So, you really have to sit and think – are you ready to withstand risks and tremendous pressure.
What really is interesting that these risks are going to be completely justified once you are successful.
7. Are you ready to fail?
Yes. You are going to fail. Unfortunately, it is the truth of life that we need to fail to become better. And in trading you are going to come down at least once. But that is just fine. All of us were there. Just remember that you always have you trading signals provider to pick you up and help you never fail again. Just answer yourself – are you ready to get to that point in the first place.
