Quick Tips to Stay Cool, Calm and Collected While Stock Trading

Quick Tips to Stay Cool, Calm and Collected While Stock Trading

Love it or hate it… the stock market is continually making (and losing) money for people on a daily basis. It’s not just about jumping in and out of stocks, or investing in a 401K for 20 or 30 years… it’s about coming up with an investment plan and strategy that works for you.

With all of that being said, stock market traders can lead one of the most highly charged and stressful careers imaginable. Full of non-stop action and major ups and downs, it can be easy to feel overwhelmed and become agitated by factors that are out of your control when riding the stock market wave.

Sound familiar? Are you new to trading?

Take a moment to read through our latest reference guide on how to stay cool, calm and collected, even when Pompei is burning around you. The stock market is a crazy place, so be sure to prepare yourself before you enter.

Over-preparation

There is a psychological phenomenon where some believe that over studying a subject can lead to a blank when it comes to putting the theory into practice.

For example, aspiring traders run around from book to classroom to teacher to try and find the best trading strategies but overthinking and second guessing takes over when the time comes to actually put in a buy or sell order with real money. In this situation, a trader has learned the theory over and over but that doesn’t do anything to prevent the body and mind from freezing over.

So, remember that while you do need to put hours into learning about the stock market and different strategies, don’t forget to dedicate some time to using a trading simulator where you can put what you learn into practice. This strategy is referred to as paper trading and the best part is you don’t have to risk a cent of your own money so it’s a win-win. 

Emotional Intelligence

Knowing how to react in a simulator can be a bit different to a real-life market as there are different scenarios to take into account. Making sure to give yourself allowance for emotional control is a good way of being able to keep yourself in check.

The first step to this is making sure you know what makes up an emotion: stimulation, feeling, motivation, belief and temperament. Once you have understood the concepts of what they mean, you can better understand how you can make your emotional state work for you as opposed to against you. 

Timing Your Trades

Market timing is used to maximize profits and balance the associated risks with high gains. It’s essential that you educate yourself on the importance of market timing and what that can mean for your own trading strategies.

What times of day see the greatest volume of action?

When does volatility spike and is there a way you can leverage that knowledge to set buy and sell orders? Is there a small window where you won’t be able to be online and ready for action? These are all questions you need to consider when it comes to timing your trades. 

Be Realistic

You are not going to win every single trade so be real with yourself. A successful trader will be right about 60% of the time (and sometimes less) so rather than dwelling on your defeats, you should focus on your wins.

Keeping this in mind or repeating it as a mantra is a good way of stopping yourself from over-stressing and being your own worst critic.

How to Keep It Together When Your Trading is in Chaos

At the end of the day, no one know what the stock market is going to do tomorrow. Some people might think they do, but it’s really all a toss up.

The important thing to remember is that you need to have a strategy in place. Know your limits, what your goals are, and when to enter and exit a trade.

With more attention on the stock market, cryptocurrency and investing than ever before, now is a great time to get started — but make sure you prepare yourself… as it might just end up being a wild ride!

If you enjoyed this article, be sure to check out my other stock market related articles by using the search box on the right side of the page. And of course… this is all just useful information and resources for you to read through. In no way am I a financial advisor, or recommending any trading advice.

Four Ways to Make Money Trading Stocks, Digital Currencies and World Markets

Four Ways to Make Money Trading Stocks, Digital Currencies and World Markets

If you’ve ever wanted to get involved in the stock market or investing in your future, you’ve likely given some thought to the various options out there. The most common method for investing is through the stock market, however, this is often a long term solution and not something active investors and younger investors are looking for. Once you’ve pushed that option to the side, then more enticing opportunities like day trading, forex trading and investing in precious metals or digital currencies might come into play.

To better explain each of these investing methods, and how they differ from typical stock market yields and investing, be sure to check out each of the summaries below.

Day Trading

There is nothing wrong with investing your money in the stock market, but it’s usually a long-term play — especially if you are referring to a 401k. However, if you have some money to play around with, day trading might be what you are looking for. With it now being easier than ever for someone to open a brokerage account with services like Etrade or Ameritrade, anyone can also start day trading from home. The concept of day trading is jumping in and out of stocks for quick gains. While this may seem easy enough, it’s just as easy to lose money as it is to gain. It’s also important to note that nearly all trading platforms also have mobile applications, which makes it easy to trade at any given point in time, and not needing to be on a laptop, computer or talk to a broker directly.

Precious Metals

We first covered the basics of investing in individual companies through the stock market, then your options with world currencies. Now it’s time to also cover investing in precious metals — which is commonly focused on gold and silver. Just like you can buy and sell shares of a company, you can do the same with gold mining stocks or through gold mining indices (some offering up to 3X multiples). Another option is to simply invest in physical gold or a Gold IRA. However, if this is something you are going to do, it’s recommended that you make this investment for the long haul. A great site for purchasing physical gold and keeping an eye on precious metal prices is GSI Exchange. Just like the stock market opens and closes in the United States, then opens again in different countries around the world, the same holds true for precious metals.

While investing in gold might not be as attractive as it once was from an investor standpoint, it’s still one of the most valued resources in the world today. Check out these resource on the top countries with gold and you will start to have a better understanding of where the finance hoarding of gold is really taking place.

Forex Trading

The business and trading of world currencies is something that has been going on for generations. However, as mentioned in the previous point, it’s now easier than ever for someone to get involved in forex trading thanks to online investing and training tools. Just like there are self-serve platforms for trading stocks, there are custom built solutions for tracking, monitoring and trading world currencies as well. When it comes to Forex Trading, there are plenty of solutions and platforms on the market today that offer access to advanced charting and analysis for traders when looking at different forex, commodities, and indices across the world. With world markets and currencies changing at all times, it’s crucial to have a platform and trading system in place that is also working 24/7.

Digital Currencies

One of the most exciting and fast paced methods for investing and trading as of lately is through digital currencies. While this method is still somewhat new and unknown to many, cryptocurrencies like Bitcoin, Ethereum, and many others are not only gaining mass attention, some of them are seeing some massive movements in pricing as well. To keep an eye on such digital currencies, you can visit Coin Market Cap, which lists 100 different digital currencies and posting their latest or live movements. While it’s easy to trade stocks, forex, and world currencies through online trading platforms, it’s still a new world for digital currency trading. There are options and market places for digital currency trading, but regulation across such networks isn’t as mainstream as it’s all still fairly new.

When it comes to any type of investing, always be sure to put in the time and due diligence. While each of the investing and trading options above is unique in their own way, they also each come with their own risks and rewards.