I have gotten into stock trading recently. So much so, that not only have I been spending countless hours watching YouTube videos on how to effectively trade stocks, but I even went as far as buying an online course.
First things first. For those who don’t know me, I have always been known as an incredibly frugal person. Outside of college, I can’t remember a time where I paid somebody to teach me, so the fact that I bought a course to increase my knowledge on how to actually trade stocks is saying something about the progress that I have made in life.
In the brief amount of time that I have been trading stocks, I am happy to say that I am up 4.33%. Now, the amount of money that I am trading with is irrelevant, because even trading with something as small as $5 used to be enough to trigger my anxiety. Instead of it being about the money, it’s more about the life lessons that stock trading has taught me.
Here are 7 lessons stock trading has taught me about life.
1. Invest In Yourself
There isn’t anything that we can’t achieve in life. At the same time, though, you won’t achieve the things that you want if you aren’t willing to invest in yourself. Remember, knowledge is power.
Investing in yourself doesn’t necessarily mean spending all of your hard-earned money to increase your knowledge. It can also mean investing your time, energy, self-belief, or any other attribute that can potentially increase your capability.
2. Think For Yourself
To be successful in life and with stock trading, you need to start thinking for yourself. Sure, you can rely on all of the technical analysis and reporting that comes out over time, but if all of it were accurate, don’t you think everybody would be throwing their money into the market to make money?
It’s the same with life. One method might work for somebody else, but that doesn’t mean that it is going to work for you. We are all different, and we all think differently. So start learning from others, but also think for yourself and make decisions based on what you think is best.
3. Self-belief Is Everything
This has probably been the biggest takeaway for me. The fact that I am taking my hard-earned money and trusting myself enough to risk it, shows that the belief that I have in myself is growing, especially for being the frugal person that I am.
Before, I would have been scared to take the risk of investing. I would have saved my money, played it safe, and waited for somebody who was more “qualified” than I was to make me money.
I’m not saying that you shouldn’t do this, but for me, the fact that I finally believe in myself enough to move past a big fear of mine is truly a special feeling.
4. How To Manage Risk
With the stock market comes a lot of fluctuation. Some days you will make money, and other days you will lose some or struggle to break even.
The key, though, is to manage your risks. It is to know when to slow down before you damage yourself further, and to know when to ride the momentum and go all in. If you ride the momentum, you can make a lot of headway.
5. To Grow, You Have To Start
If you want to grow, no matter what it is at, then you need to be willing to set aside your fears and just start. You will make mistakes along the way, but if you aren’t at least willing to start, then you will never have a chance to grow.
6. You Will Make Mistakes
Just like in the stock market, you are going to make many mistakes throughout the course of your life as well. But what happens as long as you keep your composure and focus on the bright side of things? You tend to recover. As long as you manage your risks wisely and keep your composure, you will always have the opportunity to recover from the mistakes, that again, you are going to make.
7. Nobody Is Perfect
Even the best traders in the world make mistakes on a daily basis. But it isn’t about not trying to make mistakes. Instead, it’s about the knowledge they gather from their mistakes to prevent themselves from making the same mistake again that is critical to their overall progression.
Life is going to offer you much of the same. You are not going to be perfect, and you are never going to be perfect. Perfection is an impossibility that so many strive for. Instead, focus on learning from your mistakes and doing everything that you can to prevent yourself from making those same mistakes again in the future.
I never knew how much I would actually learn about myself by trading stocks. For me, the biggest thing has been the trust that I have built in myself. I am not perfect and don’t ever intend on being perfect, but the success that I envision for myself is on me to achieve. It always has been and it always will be.
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