How many persons do you know who trade stocks but should not touch them at all?I know several persons who are my relatives, friends and from my the work with our clients in the tax accountant office who have in the end no real clue in what they are investing their money, how risky it is or how much time it needs to earn money with stocks.
Here are my personal 11 reasons when you should NOT trade stocks at all:
- Afraid to lose money.
- Doesn't like risks.
- Being too emotional.
- Need to know everything before making a decision.
- Feeling not confident behind your own decisions.
- Have trouble drawing your own conclusions.
- Need to be told what to do or believing everything what others tell you
- Awful at managing money.
- Think it's an easy way to make money.
- Get stressed too easily. Can't handle stress.
- Experience difficulty getting over past events.
Bonus: - Make lists of why others shouldn’t trade stocks… guess we ignore that one :)
I actually do trade stocks and do generate an income from it. A lot of people say, "One of these days you'll have to teach me," but honestly, it's not something most people can do - for all the reasons above that you listed. You have to have a real emotional detachment from 1) money and 2) the need to be right 100% of the time, and most people cannot do either, much less both! Plus you cannot be lazy - you need to keep an eye on the markets and quick to correct any mistakes or unexpected disasters. I love trading and think it's fun. But like I said, most people just aren't capable of viewing it that way.
ReplyDelete#1 Reason--
ReplyDeleteHave NO Money--Lost ALL Money--Stocks--Real Estate--Divorce--
Any Advise?
Peace, Love, and Understanding--Elvis Costello
Well, there's a big difference between stock and forex...that's the reason why I've chosen forex. It's a bit interesting and you don't wait months to get the results.
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