Simulators help you to learn the mechanics, however, the only way to experience the challenges, is to have Money On The Line!
Nothing will replace Real Investing or trading. Risking Money and Facing Losses Impact Investors In Very Unique Ways. Therefore, One Must Invest!
Start Small, but START! .
Size doesn't matter; what matters is the experience
Smart Investors are very keen to what is happening in the world and how this could possibly create an opportunity in the future.
The Idea Generation Process is Crucial to Long Term Success.
Focus on the right information and avoid listening to rumours before investing.By generating your own ideas you will feel empowered.
I will discuss a model that professional desks utilize to establish a view on the stock market direction. .
We will look at stock market history and economic indicators to help put ideas into perspective. ..
We will explore & evaluate some methods that professionals use to select the sectors and when to proceed. (Favorable sectors at relevant times)We Will discuss how to take the idea Generation Data and Translate it into a stock trading idea.We will evaluate the idea and decide if it makes sense from a valuation perspective.
Simulators are helpful for those just starting to learn and trying to figure out the very basics of trading and investing. Simulators under supervision and within a very professional environment can be extremely helpful.
However, simulators will never allow you to experience the emotional and practical challenges associated with investing with real money. Real profits and losses have an impact on behavior, principally losses. !
Incurring losses has proven to be one of the greatest challenges among investors! Professionals and Retail alike!
James Rogers, one of the most prolific investors alive, has made famously quoted that "The first loss is the best loss", in which he means that losses should be taken as fast as possible. One should not carry losses longer.
In economics and decision theory, loss aversion refers to people's tendency to strongly prefer avoiding losses to acquiring gains.
Most studies suggest that losses are twice as powerful, psychologically, as gains. Loss aversion was first demonstrated by Amos Tversky and Daniel Kahneman.
“The trick in investing is not to lose money. That’s the most important thing. If you compound your money at 9% a year, you’re better off than investors whose results jump up and down, who have some great years and horrible losses in others. The losses will kill you. They ruin the compounding rate and compounding is the magic of investing”