Photo Credit: Bryan Bruchman
Do you intend to earn profits in the market through investing? If so, make sure you put effort in learning the ropes on how to do it. Many people want to earn big money in the markets but refuse to put in the hardwork. To be involve in the market is easy but to earn profits from it is much harder than most people think. Mark Ritchie puts it well in Jack Schwager’s book, “The New Market Wizards” – “For novices to come in and try to generate profit in this incredibily complex industry is like me trying to do brain surgery on the weekends to pick up a litte extra cash.” Are you a part time surgeon? I believe most of the novice traders (including me) hold a full time job and trading is more of a “side” income. However, I want to remind us that we have to be more serious in trading if we really want to be profitable in the market. I do not mean we need to quit our jobs, but rather, to spend extra hours off work to really study trading. If anyone wants to take the easy way out, I strongly encourage the person to stay away from the market and leave the money in an index fund. Because by “investing” in the market without having an edge is as good as a gauranteed loss of capital.
Malcolm Gladwell calculated that one person need to spend at least 10,000 hours to be really proficient in something, and earn a living out of it. Before you start investing, ask yourself are you willing to spend that 10,000 hours to learn about it?
The truth is there is no free lunch in this world. This is also true in the market – it is not a place for us to earn extra income passively if we are not willing to understand the workings of it. It is not a place where we just need to park our money and it will automatically grow with profits.
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