Is experience in investing important? Most books about investing recommends learning trading on paper. Trading not for real may be useful to check the chosen method, but it is completely useless and worthless in the learning of trading. Good trading results “on paper”, eg. for the last six months do not guarantee similar results in the future, when you will trade live with a hard-earned capital. Quite the contrary. Trading is not just an intellectual exercise, but also an emotional exercise, and in extreme cases also physical. I’ll give you an example. If you buy a PC game of baseball and you’ll become an expert, playing in the silence of your favorite room, you can come to the erroneous conclusion that you have a talent. But move to the real field playing “real” baseball. The ball flies in your direction at a speed of 90 mph, the crowd shouts – calling you names and colleagues are counting on you.
Experience – an elegant name for all the trouble that we have met in our life.
I assure you that you will feel completely different. Keeping cold blood becomes impossible for you, with which you didn’t have any trouble within the walls of your favorite room. This is the new reality, more physical, important, and downright dangerous. The crowd is watching you and you are constantly bombarded with new stimuli.
This is the life of a professional trader. You know that you’re gambling for real money, that are important, and that you have to click the order button. You act under the watchful eye of a broker or customers, wife or husband, your friends or colleagues and you have to operate in a climate in which thousands of often conflicting information excites and frustrates you at the same time. You are bombarded with information from media, analysts and the stock market itself. In short, you need to cut through a lot of problems, most of which are associated with your inner strength to fight the emotions. If you want to succeed, you have to go through it. The school of experience is the only school that will teach you anything, and education is very expensive.
How to gain an experience in investing? One shortcut to gain experience quick is to find a good teacher. Find someone who is a successful trader in the stock market for many years and pay him a visit. You will know him after he’ll receive you as a friend. His “I” suffered through the years of struggle in the stock market and has become smaller, more humble and mature. See how your teacher is working. Watch what he does. And more importantly – what he doesn’t, what he does not allow himself to do. Such people exist, although it’s hard to find them. But if you already have met such a man, he will tell you everything he knows. If you’re still at the beginning of the investing road, consider answering the question: Can I become an Investor first.