There are many forms of investing online. While I can give you a list that is a mile long, these are the most common forms of successful investments. Some of the following know how to invest terms are:
1. Option trading
2. Future trading
3. Currency trading
4. Stock trading
5. Future trading
6. Forex trading (or) foreign exchange trading
I want to start this investing online critique out with a story... On a beautiful late spring afternoon, twenty-five years ago, two young men graduated from the same college. These men were very much alike. Both, better than average students, were personable and filled with ambitious dreams for the future.
For the sake of my example, I will set both college graduates off online trading using a day trading plat form. Through a gift, both start with the same online investing investment risk capital, the same daytrading plat form, and the same trading system with precise rules for entry and exits.
Shockingly, there is a difference. After one month, one day-trader went broke / bust, while the other day trader returned a 20% profit.
Have you ever wondered, as I have, what makes this kind of difference in people's trading? It is not always a native intelligence, talent or dedication. It is not that one person wants success and the other does not.
The difference lies within the psychology of the brain. Your psychological mind set is likely to play a larger role in your trading online career than your chosen technique or any other details associated with your day-to-day practice.
Here are some good examples:
1. One person looks at a glass ? empty, while the other personality looks at that same cup as ? full.
2. Someone may look at problems and call them stress, while another individual looks at troubles as challenges.
3. Another one may look at a ship in a storm as an adventurous roller coaster ride, while another human being sees the same situation as a hurricane that has a death call.
I am not the only one to discover this…
In his book, “Trade Your Way to Financial Freedom”, the renowned American psychologist Dr. Van Tharp discusses the role psychology plays in trading success. He divides trading into three Ingredients.
In his pie chart:
-- System is 10%
-- Money Management Success is 30%, and
-- 60% pertains to the psychology of thought and emotion.
Tharp discovered that the trader's psychology make up of the mind has more to do with his success than anything else does.
However, what exactly is the psychology of the mind?
In short, the psychology of the mind refers to your thinking and emotional actions and responses to any given situation…In trading, fear, greed, vanity, pride, hope, jealousy, denial - all these can affect investment decisions. Although, your aim in the market is to maximize your profit and minimize your risk, thinking and emotions often make this easier said than done.
FOR EXAMPLE - Traders, who cannot control the psychological process of thought and emotion, make the wrong decision - such as the common amateur mistake of holding a losing position in the belief that someday it will become a winner.
Loss aversion is a classic mistake. By nature, humans value a loss. Therefore, you suffer almost twice as much pain losing $1 as you would in gaining $1. Loss aversion compels most traders to hold a losing stock while it plummets downward. This clouded judgment clearly contradicts the trading adage: cut your losses and let your profits run.
Emotional investors hold losing positions because they view paper losses differently from realized losses. An investor also engages in other forms of irrational behavior.
EXAMPLES are attributing success as natural and losses to bad luck.
This is just the tip of the iceberg. When talking about the other devastating effects of trading, if you do not have the psychology of your thought and emotions in the proper prospective the consequences can be devastating.
This is what opens up problems for new traders, and then they lose manage money very quickly in the markets. Most people completely wiped out their finances within the first year of trading. So, as you can see, your thinking and emotions play a big part in determining whether you fail or succeed, but did you know that thought and emotion make up two different spheres pertaining to trading success?
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
David Jenyns is recognized as the leading expert when it
comes to designing profitable trading systems.
His most recent course Trading Secrets Revealed is a step-
by-step trading roadmap to having excellent money management.
Learn how *you* can become one of his students.
Click Here ==> http://www.trading-secrets-revealed.com
Receive David's free trading tips by sending a blank email
to: ==> http://www.trading-secrets-revealed.com
-=-=-==-=-=-=-==-=-=-=-=
-=-=-=-=-=-=-=-
Before I had a lot of money, I was really... Read More
As a woman Netpreneur, I sat down via e-mail with... Read More
According to Wallace Wattles, in his popular wealth treatise called... Read More
I counsel a LOT of people about money. I see... Read More
The word 'diversity' is a unique one. It can represent... Read More
No matter how tight things are financially for you; no... Read More
Recently I was reading a book called The Millionaire Mind.... Read More
If you don't have discipline then walk away from the... Read More
Yesterday we learned that 74% of all wealth is created... Read More
Many people have a false understanding of what it actually... Read More
Everyone wants to be wealthy. Only a few actually achieve... Read More
Very few people whom I know are familiar with the... Read More
As someone who loves to shop, enjoys holidays and owns... Read More
One very important wealth creating habit is to set up... Read More
Endowments and endowment mortgages have received a lot of bad... Read More
I have given many prosperity lectures over the years and,... Read More
Masters degree not required...just a little common sense, a $5.00... Read More
Paper burns and large companies can go bankrupt, but if... Read More
No matter what income level you are currently at, generating... Read More
In today's unpredictable global economy, you obviously never know what... Read More
"My people are destroyed for lack of knowledge." Hosea 4:6... Read More
"Money Doesn't Grow On Trees."Some of us even believe it.... Read More
Feel like a lemming lately? Ready to follow the crowd... Read More
Financial freedom is the power to do what you will... Read More
Simple tips on saving can very often make quite a... Read More
O'Hare Chicago prom limo ..What is your attitude towards having wealth? Do you believe... Read More
The business of banking has changed dramatically over the last... Read More
Many people have a false understanding of what it actually... Read More
Financial freedom is the power to do what you will... Read More
Have you ever had that feeling where you could not... Read More
Many people assume that the offshore world is accessible only... Read More
Why not run a lucrative paper business? Paper businesses do... Read More
When Ben Franklin said "a penny saved is a penny... Read More
Everyone wants to be wealthy, but most of us do... Read More
It's the beginning of a brand new year: a time... Read More
"Money Doesn't Grow On Trees."Some of us even believe it.... Read More
This article focuses on generating cash as a full time... Read More
Have you ever asked yourself what your highest income producing... Read More
For most of us, the idea of retiring simply on... Read More
Most people work hard all their lives only to "retire"... Read More
What does becoming rich mean to you? Is it early... Read More
When you purchased your home, you most likely got a... Read More
While you need to have a lot of positive-thought and... Read More
There are only 2 ways to grow your wealth -... Read More
Okay. So money doesn't really grow on trees. Unless you... Read More
If you're wondering where to create passive income, then you... Read More
We talked recently about the wealth formula:Spend less than you... Read More
Most accountants, financial planners and wealth-building experts agree that there... Read More
There is perhaps no more important decision than to take... Read More
The four main steps in building a wealth cycle foundation... Read More
Wealth Building |