Sunday, January 29, 2012

Trading a Business?


Have you ever think of “Trading as a Business”? The idea of this book is quite good, a successful businesses generate more cash than it consumes, so do the trading.

Chinese say, In every crisis, there's an opportunity! However, the very first thing is having a trading plan – the strategies to make money, minimize the risk and increase profit! “No one plan to fail, but fail to Plan!”

Always start with small amount, practice make perfect. Don't afraid to make mistake, as every mistake will give new experience. The experience gain will enhance in your future plan. Most important is admit the mistake done, if you buy a stock, but the share price go down, cut lost first! Stop investing if you are in doubt where's the direction now! Don't let the mistake become bigger! I like the quote from Warren Buffet, “There's only 2 rules to make money in stock market, first, never lose your money. Second, never forget the first rules.

Trading is not speculating or gamble! Never listen to news, rumors or tips, do your own analysis. Many people don't know when to buy, as they don't understand trading is probability! Gambling always lose because the probability is not at your side.

Deal with your own psychological difficulties, learn to control greed and fear. Daily movement of price and volatility of the stock market is the fact, if you can not take it, this type of investment may not be right for you.

Trading is not mean get rich quick scheme! Trading is not making easy money as well! It's a serious business with proper planning. If you start with $1,000, every year only need to make 4 trade which earn 25%, you will become millionaire after 10 years!

Last, build up your investment knowledge with latest equipment or technology to improve your trading skill, building wealth and securing your capital!
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2 comments:

  1. HAPPY NEW YEAR..TO YOU, I WISH YOU ALL THE BEST IN ALL THINGS. GOD BLESS YOU AND YR LOVE ONE'S.

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    Replies
    1. Same to you, wish you have a happy life in this New Year!

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