The definition of a trader is someone who buy a certain product and sell it later at a higher price to make a profit.
I have received an email from a reader asking me to share on my blog how someone can begin his career as a trader. After giving it some thought, I shall begin lessons on trading and readers decide whether they should take up trading as a career.
I would also appreciate readers to share their views and comments on the various subjects that I will touch on. I'm very thankful to Coconut for being my constant companion for the past one year and have contributed tremendously in sharing his experience. I look forward to sharing that little knowledge that I know.
Can traders be train? Is there such thing as Natural Born Traders?
The answer is Yes to both of the above.
Smart people learn fast and slow learner don't be despair, as long as one is passionate, hardworking and determine, it just take a little longer to accomplish your dream. It took me quite some time to realise my dream too.
Below are some common instruments for trading;
Trading, speculation, investing and gambling, they are brothers and sisters in the same family trying to make money from each other.
Statistics have shown that up to 90% of the traders lose money, it is a cold hard fact. I have asked many what are the reasons for such a high percentage of losers versus only 10% who make money. Not many can give me a good answer, it's the usual, no discipline, no money management, cannot control their emotions, etc..
Similarly, the percentage of Equity Funds, Unit Trust, Hedge Funds, etc.. losing money or under performing their benchmark is around the same at 90% even though they are managed by professionals. Choosing one that give consistent return year after year is just as tough, might as well learn and do it yourself, losing money yourself is much better than paying someone else to lose money for you. (refer more to investors, because most are told to hold for the long long term)
Think about it and I shall discuss this topic in my next post. I will be away next week for a holiday to the Chinese Capital with my wife.