Trading shares on the stock market can be a hard and risky job. It requires a lot of guts, so it’s no surprise that men are often seen as the financial geniuses behind many corporations. It is important to realize that, sometimes, women can also make great traders. In fact, your best teacher when it comes to dealing in the stock market is your mom!
There is a lot to learn about share trading. If you wish to be successful, you will have to invest time and effort into learning the ins and outs of the market. However, whether you are just starting out or have been trading/investing for a while, there are certain things that can still help you. This article covers some valuable advice from mothers that could potentially help your share market efforts.
As children, we all listen to our mother’s advice for everything. Looking back most of it is useless but there are some really good things which you can apply in your life. Share Market Trading is no different. After being into the share market for 14+ years we can tell you that our mother was our best teacher. Without her we would have never been able to succeed in this industry.
Our mother always told us to be patient. Well, she was 100% right. And it can be a good tip for share market trading. Your success in trading depends on your mental strength and focus. You should remain focused and disciplined during all the difficulties of the share market.
The things your mother can teach you about share market trading are numerous and you will take them to the graves. Your mom is a guru when it comes to managing money. She has been doing this as long as she can remember. She was probably young when she started teaching you how to manage your money and some habits and mind-sets, which your mom taught you, stay with you for a lifetime. The best among the traits that you learn from mom is how to save money.
She taught you from a young age how to save money and even if she didn’t ask you but delivered the message that it doesn’t matter what is in the shopping cart, the only things that will go into the cart are those on your list.
Things your mother can teach you about share market trading have clarity, a starting point, and a clearly-defined direction. As you know, there is no standard path that leads to becoming a successful trader in the stock market.
You can’t clear a profit if you lack clarity. Your business must be established in such a way that your operations are clearly defined, and your investors can clearly see how you plans to make money. Many novice investors make the mistake of investing in stocks they do not understand. This is a very common mistake most people make and do not realize until the damage has already been done. It only takes one “bad” stock to spoil an entire portfolio, so it important to make sure you have enough information about the underlying before you invest.
Smart mothers always repeat throughout our life, don’t get excited, don’t be depressed, try to remain calm and stable in different situations.
Same applies to stocks: Do not get overwhelmed with your share trading/investing to make the most of it. Share market trading is a great way to make money if you can check your emotions. Psychology education is the key. Too many people go about share market trading, without understanding the Emotional cycle of it.
Your mother might have chastised you in the past for this one, but what some people don’t realize is that it’s good advice. Some traders will result in losing everything you’ve got which can be emotionally and financially devastating. By keeping a safety cushion, you are cushioning yourself from potential losses by holding several positions at once and not risking everything in one trade or investment. If you want to become a successful share market trader, then one of the first things to do would be to learn how to calculate your risks. A primary component of share trading is risk management and knowing how much you are willing to lose before cutting your losses. This is important for a novice trader as well as experienced one with small or big capital size.
As we said in the beginning, our mother taught us many things growing up from how to ride a bike to how to value money. The reason we decided to write this is because we know for a fact that she isn’t the only person that can teach us how to do something new.
One of the best things to take away from this article is to start searching for answers yourself if you are unsure about something. Stop yourself from running off to Google and typing in a question that can be answered with a simple glance at the chart. The internet is full of bad advice and worse information, so when in doubt, use common sense and think for yourself.