Trade The Journey

Trade The Journey

Trading: Myth vs Reality!

Investing and Trading.   The difference is often overlooked by the public even if only subtly. When I initially began, I thought investing, and trading was the same. I knew nothing of charts, and I felt that with one stock you could alter your life’s course.

When my family gathered, stories circulated the dinner table about co-workers and colleagues who made the right investment and were able to retire early. Everyone seemed to know of someone who made a “lucky” investment that reaped enormous benefits.

 


One story, in particular, caught my interest. The story was about a toll taker who made the right investment and was able to retire early. The strategy the toll taker implemented wasn’t mentioned. Instead, everyone seemed to be focused on the absurdity of the story.  Everyone nodded in agreement that all you need is a big break. That’s how it happens, I gathered from the situation, some people make the right decisions at the right time.


Whether it was God decision or the luck of the Gods, some people were just lucky.

What amazed me about the story was everyone’s reaction. No one mentioned the effort or the discipline the toll taker might have undertaken to be successful. Maybe as you road by listening to your favorite tunes, the toll taker was listening to audiobooks covering investments.

This isn’t a criticism of my family or the comments made that night about the toll takers luck. It’s more about the deceptiveness of the market and its allowance of entry regardless of the participants knowledge or skill level.

 

Investments can be a forward paying opportunity if you can properly assess the growth and risk. Its a proposal of long-term consequences or benefits. The markets can be a forgiving teacher when investing if you are eager to learn the lessons it provides continuously.

Trading is a subject altogether different in terms of risk and time. Trading requires more of your attention, discipline, and precision when analyzing market movements. Trading could be most aptly compared to sports.

In this sport, most lose everything they have and then some. Trading isn’t for the faint of heart.

 

As I progressed in my understanding of markets and the movement of markets, I became aware of the inherent difficulty in Trading. Trading wasn’t like investing in which you could chart a plan and monitor it as the years passed. In investing, you can stay in the game by keeping a watchful eye of the price movements and the fundamentals of the company.

Some say that the greatest investor of our time, Warren Buffet, is a master of assessing companies and genuinely investing in them. His cash investment is a real investment in the business as he sees it. The great companies sometimes take years to reach their full earning potential.

Warren Buffet has the temperament, knowledge, capital, and patience to wait.

 

Deciding between investing and trading can be a question of capital and temperament. Questions like:

  • When do you need the money?
  • How much can you afford to risk?
  • Do you have the knowledge to properly asses the market?
  • How well can you control your emotions?

 

I have decided to trade, and I have decided to be a professional. One of the first decisions, I was required to make was of an investment, not of the financial kind but the personal kind. Investing in your skills and knowledge is an investment most people avoid. “Sweat Equity“.

 

But the payoff could be enormous. Often investments into yourself can take the longest time to pay off.

 

My first investment involved purchasing a year’s subscription of Stocks and Commodities magazine. This is a trader magazine, and you won’t make it past the first page without a good understanding of technical and fundamental analysis.

It’s funny; I didn’t hesitate to purchase three overpriced sushi rolls last week for $40. I didn’t hesitate to spend money to buy a larger screen television. I also didn’t hesitate to fix my car when needed, regardless of the price.

But to make this small investment in my future, I hesitated. This investment was a more serious decision for me because I felt that I was committing to trader excellence.

What if it doesn’t work out? What if I just wasted my money on a year’s subscription on a magazine, I’ll only read once? What if?

 

If I wasn’t personally invested when starting a business or investing in cryptocurrency, I was invested now.

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