Last week I did a post on episode one in the “how to create a profitable Amazon business” series. This was taken really well and I wanted to talk some more about my investing strategies and the mindset you should take, as well as some strategies to consider.
Mindset is extremely important when starting trading. The reason is that you have to understand its not the end of the world if you lose a few trades in a row. Some of the best traders in the world have losing weeks and even a losing month now and then, the difference is they know that at the end of the quarter or the year they will be profitable and if you have that mindset and the confidence then you will be profitable too. The 3 keys to becoming a successful investor is a.) Bankroll management, b.) Mindset, c.) Strategy. If you have these 3 elements you will be successful. This goes for all types of trading, below I have covered the top 3 most popular investing types below.
Types of Trading
Forex trading – Foreign exchange or FOREX for short is the largest financial market in the world. With 5 million USD traded daily. That’s more than all the other financial markets combined. As a result the currency markets have grown in popularity even with beginner traders. If you are a just starting I recommend an article called “forex trading strategies for beginners” it’s a blog talking about exactly what steps you need to take to get started in the markets.
The second type of trading is called stock trading. This is what you see the most often in the news, where large companies are “floated” and individuals can either buy stocks or short the price of the company.
The final type of trading is being a venture capitalist. This is where you invest in specific companies, usually more early on where you will gain a certain percentage of the business for a certain amount of money. This is the original type of investing but is actually less common now than previously.
Although mindset is extremely important so is the strategy you decide to take with your investing techniques. Generally there are 3 techniques when it comes to investing (whatever method this is.) This can be outlined to aggressive, passive and intermediate. Personally I recommend everyone start on a passive or intermediate type of strategy. This way you can actually slowly become a good trader and get to know the markets without risking too much of your original funds in the process. This also depends on how much time you have to research your strategy (or system) and implement it. If you only have 5 hours per week to implement into your trading then you should go with a passive, conservative system. If you have over 20 hours per week to implement a system then you can look into more trades and as a result become a more aggressive trader, making larger and more trades in general.