True… When you’re trying to learn something new, there are no wrong questions. The more you ask, the more you open yourself to learn.
But there when it comes to stock trading, there sure are some redundant, beaten-to-death questions that could be frustrating for many experts to answer.
If you’re new in the game, to help you look smart and get a head start in the right direction, here are five questions you should avoid asking a pro stock trader:
1. How much money can I make in trading?
This is the most common question a beginner asks. It’s also quite controversial to answer.
You can end up with millions in your bank account. Or you can end up with nothing.
In fact, the majority of stock traders end up losing money. You can perhaps be one of them!
In general, stock trading is quite lucrative. The framework is simple – you buy at low and sell at high. But with the market so dynamic, a lot of factors come into play, making the game quite challenging at times. Especially during a recession when there’s market-wide FUD, it’s not easy to trade.
Additionally, and more fundamentally, how much you make in stock trading depends a lot on you. What kind of financial standing you have? What kind of learner you are? And so forth.
So, not even the experts can answer how much you can make in trading. It’s an answer that varies for individuals. Nobody can know how much money you can make. So, please avoid asking this.
2. Is stock trading difficult?
As mentioned in the previous point, while the framework of stock trading is simple, it’s far from easy. There are plenty of challenges on the way.
However, even those challenges are subjective to one’s expertise and proficiency.
For instance, an expert can find those challenges easier to sail through, wherein a beginner can struggle.
So, even this idea that stock trading is difficult or challenging is subjective and varies between people.
A trader who’s working hard and has good learning habits can find it easier; they can make more money. But if you’re not investing enough of your time and energy in learning and improving, you’re going to find the game difficult.
Asking this redundant question to an expert would do you no good. There’s no “yes” or “no” answer to this.
3. Which technical indicator is the most accurate?
Once you’re past the beginner’s stage and are getting acquainted with technical analysis, this is one of the first few questions you would come across…Which technical indicator is the most accurate?
Technical analysis is a wide and extensive subject with too many concepts packed into it.
There are many technical indicators: FROM Relative Strength Index (RSI) and Bollinger Bands TO Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX).
Foremost, there’s no such thing as “most accurate”. There’s always some variable or room for imprecision.
To that, there’s also no such thing as the “best technical indicator”. Different indicators have different dynamics; different traders use different ones for different purposes.
Which ones should you use and rely upon depends on your individual needs, goals, and trading style.
So, for someone else to answer this for you isn’t valid. These technical indicators have their own degree of accuracy and relevancy in particular trades.
You will have to figure out the answer yourself when you’re on your learning curve – going through stock market courses online, following the news, experiencing wins/losses, and auditing your trades.
4. Is it risky AKA will I lose money?
At large, stock trading is risky.
However, the extent of the risks can vary for different individuals.
Someone who has good financial backing with a higher appetite for risks, they might not necessarily feel the risk to the same extent as those who aren’t financially adept.
Similarly, while you will lose money, how much money you lose and when will you lose depends on many factors and varies for individuals.
For instance, if a new trader losses a lot of money right at the beginning, it’s not a good thing. They will inevitably leave the game. However, if they have successfully traded many times and they lose the money, that loss would come as a part of the process and they would be able to bypass it rather easily.
So, they are different variations of “risk” and “lose money”. For some, it is okay; for others, not.
You’re better off finding the answer yourself after auditing your strategies, plan, and finance than asking it to someone else.
5. Is stock trading for me?
Unless you’re asking this to your mother or best friend, the other person will never know.
In fact, if the stock trading is for you or not – you’ll never know yourself unless you try it firsthand.
This is same as drawing, cooking, driving, playing baseball. You will never know if you can do these things unless you do them in the first place.
Moreover, “is it for me” is much more than just trying it for the first time, finding it difficult, and then ditching it.
Stock trading is a great way to build a portfolio and achieve financial independence. So, if you’re chasing these goals – high-worth portfolio and financial independence – there’s no other option but to get in the game, learn, and start trading.
Never ask this question to others.
Yes, stock trading is for you. But will you trade – and will you subsequently improve – depends on your goals, preference, and commitment.
These are five questions you should not ask a pro stock trader.
They are redundant and have no definite answers. And, most importantly, the only way you find these answers is when you ask the questions to yourself – and not others.
So, when you’re starting, know which questions to ask others. At the same time, also know which ones to ignore.
At the end of the day, no matter the questions you’re asking (and not asking) – learning to successfully trade in stocks will take some time. Dedicatedly sticking to the process will slowly but definitely unveil all your answers.