Uncover the Myths of Stock Trading

By W. Alan Gay

As a Stock Trader for over 15 years, I have learned a lot about the ins and outs of the business. I started out on my own, rather than with a big brokerage firm with fancy employee training courses. I took seminars and self study classes and learned as I went, many times through sheer trial and error.

While my self taught training may have resulted in a slower success, I know a lot more about the real world of stock trading than a lot of those investment advisors out there who only know what their employer told them. One thing I have discovered over the years is that there are myths that continuously recur when talking to people about stock trading. Here are three of them:

The first misconception I'd like to dispel is that only certain types of people make successful stock traders. True, stock pickers (those guys who pick the big winners by consistently analyzing the market) are more often than not left brained thinkers , which is probably how this myth originated.

But there really is something in stock trading for every type of thinker. If you aren't a left brained analytical type, you just need to find a process that works well for you. I am definitely right brained, and I am being completely honest when I tell you I would hate to sit around and analyze stocks all day. Despite this, I have made a great living trading stocks. Anyone else can too.

Second, is the underlying belief that stock trading is risky, even riskier than owning your own business. True, people have lost their shirts in the stock market, and those are the big splashy stories we all hear that frighten a lot of people away.

But I have discovered that if you can establish a process for setting your stops can limit your risks to a tolerable comfort level, stock trading is really a very low risk profession. To illustrate, I have created a system for myself that allows me to trade with a success rate of up to 75% , which is hard to beat! I can't think of any other business that can give me that kind of low risk return.

Finally, I hear again and again that to really make money in the stock market you must commit to it full time and then some. And I agree, this is absolutely true for some types of trading and particularly if you don't have a good stock picking service. Then you have to do all the leg work in a fast paced environment. That does take a lot of time.

However, rest assured it is possible to make a full time living trading stock for 2-4 hours a day. What you do with the rest of the day is up to you! The trick is to find a process that meets your comfort level of risk and is very efficient with your time. There are a lot of courses available and I agree it can be intimidating to find the one that's right for you. Investigate several choices and make sure to ask lots of questions before signing up. If you don't get satisfactory answers to your questions, move on fast, customer will not improve once they have your money! If you research your options knowing the right process is there for you, you will be on your way to success at stock trading before you know it. - 23196

About the Author:

W. Alan Gay has been a stock trader and coach for fifteen years. His free report describes Alan's trip to becoming an accomplished stock trader and gives useful tips he and his students have used to consistently trade profitably. Click to obtain a free copy of his report and learn more about how you could be a profitable stock trader in as little as two weeks.