Trading is not a gamble – how can invest not turn into bankruptcy?

Trading is not a gamble – how can invest not turn into bankruptcy?

Investing in the stock market, trading cryptocurrencies, operations on CFDs – this type of activity enjoys unflagging popularity due to the visions of making a lot of money in a short time, tempting for many beginner traders. Unfortunately, express wealth plans usually get revised just as quickly. The loss of capital is most often caused by ill-considered investment decisions. Traders who went bankrupt at the beginning often say that trading is nothing more than a gamble and that earnings are the result of luck. This is of course not true. Skillful investing has nothing to do with any games of chance, and multiplying your capital requires knowledge and patience. Read more about trading on Broker.cex.io

The world of trading has been opened to many people, if only because of the development of broadly understood mobile technologies. In the past, investing was associated with an exclusive environment of brokers and businessmen who had a lot of cash. Today is completely different. To start trading cryptocurrencies, stocks, or other assets, all you need is a small initial capital, Internet access, and an account on one of the investment platforms, e.g. Plus500. It is a world-renowned trading machine that allows you to make transactions with several financial instruments.

Trading with Plus500 is fast, easy, and innovative, with all the necessary data at your fingertips. It doesn’t matter if you need to check the Bitcoin rate or the latest gold prices. In this respect, trade has been greatly facilitated. However, to be effective, it should also be supported by appropriate investment behavior. Otherwise, our actions in the chosen market will not have much to do with trading and will turn into ordinary gambling.

Invest, don’t play

Many investors call their trading activities a game – they say, for example, “playing on the stock exchange”. This expression in everyday conversations probably does not surprise anyone and does not hurt. Before ourselves, however, we should answer the question of whether trading should have anything to do with the game. The answer is no.

On the one hand, the game as an activity is associated with activities based on a chosen strategy or tactic, but at the same time, it also gives a huge impact on the final result of individual actions to the random factor. Simply put, it can be assumed that during the game we do not have much control over what may happen during the game. It is quite different from trading. Each of our moves, or even the smallest investment decision, must be supported by a thorough analysis of the available data.

Before we decide to invest capital in selected assets, we should examine the history of their rates, calculate whether such a move is profitable for us, and also check all geopolitical premises that may affect the final quotations. Simply put, it always should be when trading minimizes the risk of loss. Unfortunately, this always occurs and it is difficult to act in such a way as to reduce it to zero. However, skillful analysis can save us from bankruptcy and make trading an investment process, not a gambling game.

Avoid risk, don’t go all the way

The numbers do not lie – the vast majority of accounts operating on various markets record losses. For example – between 2017 and 2018, the number of people who suffered a loss on the Trade market increased by 7.5%. At the same time, however, the number of people who can boast of a profit also increased. There will be no shortage of traders suffering investment disasters for years to come, because too many of them, especially beginners, act too rashly and carelessly. The biggest sins of such investors are:

trading under the influence of emotions,

trade-in “forge”,

investments VA banque.

All these omissions bring trading closer to gambling. Meanwhile, investing cannot be dictated by strong emotions. Nor should you undertake any trading activities just to bounce back from a missed investment decision. The same goes for going all in. Trading is not a party of poker – if you want to earn money, you should be humble with your capital. Of course, you must not be afraid to invest, but at the same time, you cannot allow yourself to recklessly invest your capital, because it will be wasted in the blink of an eye.

Tune in for long-term profit

Gambling is usually associated with a very quick, not to say instantaneous, profit after a winning bet. It is not easy to obtain it, but if it happens, you can multiply your capital quite easily and effectively. Trading, as already mentioned, is not about relying entirely on luck. Investing is a process that takes months or even years. Therefore, if you want to start your adventure with trading, be prepared to not become a millionaire in a month. The real virtue is patience. Systematically and consistently multiply your capital. Make mistakes and learn from them. Stick to your investment plan and don’t let your trading turn into a game of chance.

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