When Investing, Keep It Simple As A Child Were Meant To Invest For You

When investing, you should be able to explain to a child what is your plan, how much do you expect to win, how much do you expect to lose and when will you close the trade. If you can do that, then it will be way easier to explain to your broker what your plan is. Determine beforehand how much you want to win and then get out when you get there. By the way, if you haven’t sill read “The Zurich Axioms”, then I highly recommend you to do it so. It has some valuable and important information that you will use now and probably in all aspects of your life, not just investments.

Trading is not and it should not be complicated

Trading and investing is not complicated; or at least it does not have to be. Many times, brokers and investors make it more complicated, at least as far as you can tell, so that way you give it up before you even start and give to them all your money and responsibility in managing it. That is exactly what they have wanted you to do. They need to survive and to earn their money. They live out of commissions, so the more money they have with them, the more they will earn. But you in the other hand might lose.

Take your profits too soon

So, to avoid that, you should take the matter in your own hands and do all the hard work yourself. You might even have some fun while doing it (at first I thought it was a pain in the ass, but after a while I realized I just love it! There is a thin line between love and hate and that applies to your financial investments in the same way). One of the most important aspects is to define where you want to get and when you get there, GET OUT! Do not strive for more. Do not think “I might stay a bit longer”. That kind of thought may make you lose your hard earned money.

Taking your profit too soon is one of the most important lessons you will have to learn in order to be successful at this game. Sometimes it will appear that you should have stayed longer with that trade and you know it all along! But our mind can fool us some times. You do not realize it, but taking your profit too soon maybe has saved you tons of other times, but you took it for granted and didn’t even realize it! So, take your profits always too soon and do not be ashamed in doing it so.

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