Yes, there are examples. But they aren’t widespread. You don’t see too many people walking down the street, or on your social media feed, who have amassed big wealth from the stock market.
This picture underscores the real fact. And it also overrides the extravagant dreams that so many beginners enter the game with.
Becoming a billionaire stock trader or investor is difficult. In fact, even becoming a millionaire is far from the majority’s reach.
However, that tone aside, it also doesn’t mean you shouldn’t chase such high goals.
You should set goals beyond your reach so you always have something to look forward to.
With a goal in place, the most important factor that will help you reach the victory mark is A PLAN.
You need a well-defined plan. And this is one of the most common tips the successful traders and investors give to the beginners.
And rightly so. After all, a goal without a plan is just a wish. And a wish never becomes a reality.
So, if you’re really looking for one single trick that would change your fate as a stock trader, it is this one…
Have a Trading Plan
Now, of course, mapping a stock trading plan is easier said than done. It’s much more than just “I want to make a million”.
In your plan, you need to bring more definiteness and clarity.
Here are three simple tips to create a good stock trading plan:
1. Think in 20 years term and NOT 2 months
When you’re building a substantial wealth, you must think with a long term perspective.
Meaning, no more thinking about 2 months. You should think in 20 years term. (Even more, if you’re just in your 20s and 30s.)
It’s a long-term game that demands enough time and an enormous amount of patience from you.
2. Divide your goal
Divide it into smaller goals… Into smaller measurable goals.
You must have proper mechanism into place to keep track of your progress. You must stay informed that you’re heading into the right direction, and towards the right goals.
So, segment your long-term goals into several short-term targets. And then keep track of your growth to those targets.
3. Adopt a learner’s mindset
Your wealth would only be as big as your knowledge and technical proficiency. This is why it’s a relatively easier game for those who are lifelong learners.
You must actively learn every day, from theories, as well as your own experiences of wins and losses.
This would help you keep your movement steered in the right direction.
After all, even for the same destination, the exists multiple lanes. The more you understand the market, easier will you find to stay on the right lane that has fewer obstacles.
So, explore new ideas and takes every day. Strive to learn how to trade in stocks online on a regular basis. Opt for advanced stock trading courses.
Remember, the more you learn, the more you earn.
These are three simple tips that will help you map a good stock trading plan.
Trade and invest with a perfect plan on your back. Eventually, if you’re backing your plan with the right course of actions, you will achieve the desired wealth.