Today social networks bombard us with information about trading. Has it happened to you that you see a video where someone makes money in minutes from their cell phone and you think “I want that too”? Many people reach the world of trading in financial markets attracted by the promise of financial freedom, fast profits and a lot of free time to travel, exercise and lead a full life. But the truth is more complex than this, to do trading It is not like networks paint it, it requires work, analysis and discipline. In addition, it is not necessarily for everyone (and it has nothing wrong if you discover that it is not yours). In this text I will tell you some important points to take into account about doing trading And if it could or may not be for you, as well as alternatives in case you prefer to put your money in other ways.
Initially, let’s put the cards on the table: trading and investment are not the same. Investing is like sowing a tree: you choose the terrain, I laugh at patience and wait for time to provide fruits. Instead, do trading It is more similar to surfing: you need to read the waves (the market), have fast reflexes and make decisions in seconds according to a definite plan. Without waiting for years, you seek to take advantage of short -term volatility, even in windows of minutes or hours. Now how do you know if the trading is it for you?
The profile matters more than you think
We all know someone who cannot wait for the microwave to end up heating and turning it off 5 seconds. Or who can be watching a three -hour movie without looking at the cell phone. This personality difference says a lot about our decision making and specifically for trading It is vital.
Do trading It requires discipline, emotional control and risk tolerance. If you despair easily, whether losing is distressed or it is hard for you to follow plans without diverting, you are likely to end up making impulsive decisions. And that, in tradingyou pay expensive.
Qualities that can help you
From my experience, some qualities that give us the signal of having wood from traderare the following:
Analysis capacity – You like to see data and trends. You are curious, you don’t stay with the first thing you see; But you are looking to go further, understand your environment, interpret it and get advantage in this regard.
Self -control – You can follow a plan without your emotions taking control, always in search of a result greater than immediate stimuli. It is easy for you to follow diets, savings plans or avoid distractions at critical moments.
Structure – You have assigned time, clear goals and you are constant. Your activities are based on habits, in order to rule out in your mind what does not require a significant decision making and focus on what really generates a benefit.
You accept that losing is part of the game – in everyday life it is easy for you to part with negative moments and use them as learning for following activities. Do not take personal mistakes or get hooked with negative gusts, you understand that part of life is to make mistakes and learn.
Although these qualities are not limiting, they can support us at the beginning of our path as traders. Financial markets can be very physical and mentally challenging, dominate our impulses, conserve calm and order will give us better bases when making decisions.
Signals that may indicate that it is not for you
On the other hand, there are also signs that could make us think trading It is not for us (or at least not at this time). It is important to say that this is not necessarily bad, it is like when we know that our fort is not exactly bike, but we are excellent skating, simply our skills are others and in them we can capitalize. Here are some signs:
You are looking for a quick exit to your financial problems – the trading It is not a magical solution to get out of debts or earn easy money. If you start from the urgency, it is very likely that you make bad decisions based on impulses and poorly managed ambition.
It is hard for you to lose – do trading It implies losses, even for the best. If just thinking about a loss takes away your sleep or changes humor all day, it is better to think twice.
You don’t have time to learn – this is not about entering a app and guess whether the market will rise or fall. The learning curve to be a trader profitable can take years, requires hours of study, analysis, risk management and attention to economic news, among others. If you don’t have that time, you may end up playing roulette (and we don’t want that).
You have too many things in your head – Be trader demands time and mind; If you are undertaking, studying, working 8 hours a day, trying to lead a healthy life and you want to do trading… You’re going to collapse. I sincerely tell you, everything has a time and a place, do not take your body and mind to the limit, the result is hardly satisfactory.
Concrete actions in case you still have the doubt
Haz paper trading – Use demo accounts to practice, although it won’t save you time, you can save monetary losses while discovering if it is for you. There are multiple brockers that allow you to access demo accounts before entering real money, in order to familiarize yourself with the ecosystem of tradinglearn how to do, visualize the available instruments and operation mechanics.
Define your profile – Be honest with you. How long can you dedicate to you? How much are you willing to lose without affecting your economy? Making self -reflection is very helpful (practically for any decision). Regardless of the answer, knowing ourselves more will support us to make better decisions.
Test your discipline – Can you follow a strategy without breaking the rules? Try to generate habits that improve your quality of life. Try to do 30 minutes of walking a day, read a chapter of a healthy book or cook. These small actions can be the preamble to know if you could follow a trading plan consistently.
And if it’s not for you … there are more paths
Not everything is trading. There are many ways to put your money to work without being in front of a screen all day. Through alternatives such as stock market houses, brockers and even cetesdirect, you can find different alternatives such as actions, ETFs or bonds for those who want exposure to the market without being actively operating, but with a medium and long term vision.
Additionally there are institrutions that allow generating simple but powerful strategies, with recurring investments that do not require punctual monitoring but from time to time in time in order to analyze whether it is maintained aligned with our financial goals.
In conclusion, do trading It is not the panacea, but it is not bad either. It is a tool, and like any tool, you must know if it is adequate for you. Just as not everyone wants to be chefs, although we all eat, not everyone should be traders Although we all want to grow our money.
The important thing is to know you, try with responsibility and make decisions from consciousness, not from emotion. The objective is not to presume operations, but to build your financial fullness with what best suits your lifestyle. There will always be a path to you, and the important thing is to choose it clearly. See you in the next installment!
About the author:
*Juan Carlos Cruz Tapia is trader and author of the book 100 questions to understand investments.
IG/TT: @juancarlos.trader
The opinions expressed are only the responsibility of their authors and are completely independent of the position and the editorial line of Forbes Mexico.
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