It doesn’t matter how hard you work or how talented you might be, your wealth building is tied by a singular constraint: your time and energy. When you stop performing, the money stops flowing. With retirement looming, it can be uncomfortable thinking about how it will be increasingly difficult to trade your time for dollars.
The way to sidestep this constraint is to leverage the efforts of other people. Unfortunately, it’s not easy to start your own business and build up an army of employees. You need plenty of capital, superb organization skills, and a business idea you can take to the bank.
Still, if the time and talent available to make money aren’t enough and if building a booming business is a pipe dream, there is a route you can take to change your fortunes, a path to prosperity that others have pioneered for you to follow: investments.
The world of investments is broad and deep, but a good place to begin your treasure hunt is the stock market. Many maps are available on where to start digging. Let’s look at a few:
Learn How to Earn
There is much to learn, from the fundamentals on how the market works to various tools that you can use to buy promising stocks. You can learn by taking a course from a seasoned investor or by creating your own self-study curriculum. Ideally, you should do both. Learn the basics from an active trader who teaches classes, then deepen your knowledge through self-study.
When it comes to research, you’ll find an earnings calendar to be an invaluable tool. Essentially, it’s a calendar that marks when companies will release their earnings. Since many companies will release their earnings all on the same day, a filtering tool will help you focus on just the companies you’re following.
Where to Start
Once you’ve got a good understanding of how the market works, a good understanding of how to research stocks you’re interested in buying and selling, and a good understanding of paper trading, it can be difficult to decide where to start.
One good place to begin is binary trading. Instead of investing in a particular company, you turn your attention to the market and take advantage of its behavior. So, if your research of a company looks goods, you have to decide whether its stock price will go up or down. Once you’ve decided based on technical indicators or market news in what direction it will move, you can then put down your money. If you anticipate that the price will rise, then place your money on it rising. If you’re right, you’ll make money.
Binary trading is a good place to start for three good reasons. One, it’s simple. You don’t have to work out a complex strategy. Either the stock price will go up or down, and all you have to do is place your bet on the movement. Two, it’s easy to see results quickly because it’s a form of short-term investing. Three, you will learn a great deal about how the market behaves, which will be a good foundation for developing a more complicated strategy.
Trader Mindset Training
It’s not enough to learn all about the market and to get increasingly sophisticated at riding winning trades. You also need something else, something that isn’t taught in books or courses: self-awareness.
Unless you know your own impulses, emotional patterns, and fears and hopes, then you are liable to make bad decisions. While some classes in positive psychology or some self-help courses might help you develop a better understanding on how emotions can liberate or constrain our logic, the best way to acquire self-awareness is to reflect on your trades. Set aside time after each trade and after each series of trades to understand your own thinking and feeling patterns and notice how it affected the outcome of your trades.
It takes time to develop deep self-awareness, but this is one quality that all good stock traders have in common. Although it’s often mislabeled as intuition, self-awareness will help you make more winning trades than just relying on raw data alone.
In summary, playing in the stock market levels the playing field. You don’t need extraordinary talent or to start a business to earn a fortune in the stock market. The best way to start is by learning all you can, then starting in a simple way, such as binary trading. You’ll also find it helpful to cultivate self-awareness so that you avoid the temptations of fear or greed from wrecking your trading decisions.
Photo Credit: Arch_Sam