Why You Should QUIT Trading TODAY!
The financial markets.
What a wonderful way to make money! You just buy some stocks go high risk high reward, then BOOM, you're a millionaire! Right?
WRONG! The financial markets is one of the MOST difficult markets in the world. The foreign currency market has a daily volume of $5.1 trillion and equities have a daily volume of $84 billion. The majority of individuals lose money in the market. The market is not a zero sum game, rather it is a negative sum game. To even take part in the market means the individual begins in loss, not break even.
Critics may argue to buy gold because it retains its value over time relative to cash, thus can serve the role as a perfectly safe asset. Cryptocurrency enthusiasts make the same case for bitcoin. During times of crisis these two assets perform the best. But one can see from the Coronavirus predicament, both gold and bitcoin crashed in price.
Others may argue they have a trading course that can make anyone profitable. If someone wants to become profitable, of course they should be "serious" and "invest" in their education. But to whoever selling their trading course, where are the profits backing their credibility? There are individuals that sell trading courses and post their trades publicly, but the majority of "finance gurus" are unprofitable themselves and sell information one can find for free on YouTube.
Today due to the internet and the accessibility of information, more people than ever are getting involved in the financial markets. Considering bank interest rate is near 0% in the US and is negative in most countries, it seems better for individuals to take part in the financial market than do nothing with their money. But too many people think the game is easy and can be achieved by anyone. While I do think every human being has the capacity to make at least 2% a year, it is more important one uses financial markets to develop themselves in relation to their psychology and emotion, than attempt to become an overnight millionaire.
In reality, most people are trying to get rich quick, and in this quest they bankrupt themselves. I know I have personally went to $0 on multiple accounts through this mindset. Considering the insatiable greed within man, it would actually be better for people to not get involved in the financial markets to begin with. It is better to gamble at the casino and know you are gambling than it is to take part in the financial markets simply to get a dopamine hit of going all in under a false premise of "investing".
I will end this article warning you that Jesus included greed and envy in the list the 7 deadly sins for a reason. Envy is bad enough, but greed is what kills most people in the financial markets. Greed is the primary reason why most people are not wealthy. If one seeks financial gain, it is most important to look within and face ones own demons, than run around in circles trying to find the "secret" that will bring unending riches.