Trading Information Overload
It is amazing how many investing websites, newsletters, advertisements, and stock picking services there are. Every service touts their top picks and explains why you are missing out by not being a member. I have tried lots of services, techniques, etc…..and most are garbage.
There are some real sites out there with real traders that will provide information about how they approach the market and usually the common theme is that you have to be disciplined, follow the market everyday and stick to your method in good marketers and bad.
Unfortunately it takes most investors and traders years to realize that chasing stock picks from the latest newsletter or buying the latest system ends up leaving them with little to show for performance over time.
Yes, there are systems or methods that will give you an edge but you have to have discipline to follow that method in good times and bad.
You need to have a real interest for investing and constant learning, and you have to match your comfort level with your method of investing.
I mean if you lose sleep over losing 5% on a stock trade then buy index funds and don’t trade. There is so much garbage out there selling “The Dream” especially with Forex and Penny stocks. I have talked about options on here in past posts because they is so much you can do with options whether you are a trader or a long term investor but if you don’t take the time to understand what you are doing and simply subscribe to some option service spewing out weekly option picks then you will LOSE MONEY.
Making a living as a trader is no easy task and you have to learn the ropes like everyone else. There are some investing systems that do well but it’s the individual trader following that system that screw up. (You get greedy and don’t sell when the system says sell or you average down on a stock that the system said SELL because you think the stock will bounce,etc…..)
So if you are investing right now now and underperforming the market or churning your account then step back and evaluate what you are doing. If you feel lost then find some quality education(not some $5,000 guru seminar) but first go to industry sites like www.cboe.com for options and watch some free training.