Trading is the process of anticipating changes in value, and taking action to participate in that change in value.
Trading is not about
sitting on the sidelines,
watching your money
at a distance.
That's Investing.
Online trading uses money in a very active way. Your money and you are involved very intimately at many levels. As you skill in online trading grows, your relationship to your money will change.
Let me give you an example: One of my best ever trades yielded a 29% profit. OK, you say, that's pretty nice, kind of above the S&P, pretty good annual rate of return really. Oh, but I forgot to tell you something. That 29% profit was made in just one hour.
Now imagine how long it would take you to make 29% putting your money in a bank and watching the grow at 4% per year or whatever. Feel what it feels like to have your money grow 29% in just one hour.
Saving is the process of putting money aside in a safe place.
Saving is familiar to most people, it's hopefully a basic money skill that your parents taught you and you've done successfully or not so successfully throughout your life.
When we start trading our money, a lot of beliefs that you have about your money and what you do with it will start coming up.
If we do not address these beliefs and emotions, we are unlikely to grow as a trader
