DEVELOPING THE CORRECT PROCESS
There is a lot of information on the stock market and knowing where to start can be confusing. The beginning stages of your development are crucial. Stock trading requires you to learn and understand how to put your money to work. Everyone has a different perspective and view about money. For each person money, means different things. It can mean power, independence, scarcity, hope, and at times, people can view money as a bad thing. Where is this heading?
To develop the correct process, as your coach I must understand how you view, think and interact with money. How do you value money and what emotional connection do you have to it. Why is this important? This is important because stock trading requires you to put your money at risk. Stock trading is not a profession where you are guaranteed a pay check at the end of your work day, week or month. For that matter, there is no guarantee that you will ever make money trading stocks. The fact is, you could be losing money for years. Are you ready for that financially and emotionally?
Developing the correct mindset for stock trading is the biggest challenge for traders. The reason this is so difficult goes back to your expectations about stock trading. You expect to make money because you have studied the markets and acquired some knowledge. Once again, you believe because you put in the time and effort towards the markets, that the markets should now pay you in return. Unfortunately many traders find out the hard way, that the market doesn't owe you anything, no matter how many years you have invested into trying to become a profitable trader.
You cannot control what the market does and how it moves. After years of losses and blowing up a few accounts a long the way, many traders quit. Stock trading can destroy you financially, emotionally and most importantly psychologically. This is why it's extremely important to develop the correct process and mindset. It will prepare you to deal with everything you will go through. When real money is on the line, you don't know how it will affect you.