The Stock Market is an amazing dynamic - the engine of the world's prosperity. The world's economy and productivity have thrived due to the availability of a platform where the common investor can make contributions and reap their benefits.
The Internet is also an amazing dynamic - the engine of the world's information. The world of information at everyones fingertips in real time is just only beginning.
Now these two dynamics are coming together, and ordinary people like you and I now have the opportunity and access to information and trading platforms that only the patrons of Wall Street had just a few years ago.
I can remember when it was all so new to me. It was like a giant game where people played for keeps. People were becoming instant millionaires. People were jumping off buildings in utter despair. Wow!
I remember wanting desperately to become one of those Wall Street guys or a Futures Trader in the Pit. Although my life took more of a creative path, trading remained a passionate interest. Then came the internet. The days of the ticker tape were gone forever.
Hey, this is great. I no longer have to get out my magnifying glass to comb through the endless charts and minuscule details in the Journal, or call my broker just to get a sales pitch when all I wanted was a current quote. If you didn't notice, Stock Brokers have their own agenda, but this is beside the point. Or is it?
I can be a Trader! Little old me and my computer. Where do I start? Hmm... a Google search. Just do a search on any search engine. Every kind of internet hawk is selling something. "Buy my package and I will guarantee 80% winners." Or "this system will tell you when to buy and when to sell." I am sure these are attractive offers to the beginner who doesn't have the time for due diligence. Well not me, I know what I'm doing.
I was the anxious one that just wanted to start trading. I had some great ideas - "Put me in the cockpit and I will learn how to fly when I get up in the air." I crashed and burned of course, but I learned a lot on the way down.
I am not an expert trader, although some days I think I am. I am just a guy that is very interested in trading. I was humbled. I had a lot of new questions too. Hmm... maybe these experts might be able to help.
Day trading vs. swing trading? spread betting? pips? technical analysis vs. fundamental analysis, oh no I'm in trouble. Indeed, I was in trouble right along with all the other newbies entering the market. I began feeling like a mouse exposed in an open field.
In my quest I have learned from the best and got eaten by the rest. I like to compare the internet to the wild west - the massive new frontier of great opportunity, but also great lawlessness. There are a lot of snake oil salesmen out there just waiting for eager people like you and me. There are a lot of those miracle medicines that claim to make you wealthy in a matter of months or days.
Well yes, there are those that become millionaires and billionaires virtually overnight, and believe me that intrigues me too. That is what makes the snake oil salesmen's job so much easier. They prey on the inexperienced uninformed trader. Even more, the impatient trader is an especially delicious target for the internet hawk. That was me, especially delicious.
That said, I can now declare that the more informed and educated I become I realize one thing - the more that I learn, I learn that I can learn much more. There is no substitute for due diligence. The information is there, especially with the internet, the amazing tool that it is. Due diligence is doing the research yourself before you trade with your hard earned money. The success of a trading career is directly applied from the extent of due diligence. Now due diligence is an exact opposite of impatience and ignorance.
Yes I said it. Ignorance is exhibiting lack of education or knowledge. The internet has left the ignorant without an excuse. I will admit it, I have been ignorant. Ignorant and Impatient must be the food of the gods for those hawks.
"Put me in the cockpit and I will learn how to fly when I get up in the air", I said. I understand the feeling of wanting to get started - almost with an urgency. Today I write to tell all you eager eagles to wait, slow down and give yourself a much needed education, and learn how to do research on all those great picks. The internet is the tool for due diligence by the proficient trader. Use it to your advantage not disadvantage.
Lots of people have become very wealthy very quickly and most of the time it is not based on good luck (and don't let it be the internet hawks that get wealthy). Lots of people have also lost their fortunes and most of the time it is not due to bad luck. Given the risks involved, it is important to say that there are proportionally much greater rewards vs. the risks if the trader is willing to do due diligence. Information and education are key, and most of all a successful trader must combine them with patience.
Anthony Anselmi
The Rainy Day Trader
http://www.starvingadvertisers.com
Written by Anthony Anselmi for TheRainyDayTrader, Introduction to Professional Trading, an educational website for the beginning trader. www.starvingadvertisers.com |
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