Why you Should Learn to Trade or Invest Independently
There are many good reasons to why you should be learning how to invest or even trade in the financial markets yourself. However, in this post, I am just going to give you some reasons to why you should start pulling up your pants and get yourself interested in the information available in books, magazines, internet, courses, etc that will teach you about how the pros do it.
Have you seen how many courses there are in the market right now that aim to teach you everything you want to learn? If you have, then some of you might have even attended their previews and even bought a course or too. Kudos to you because you have taken the steps required in the right direction. Do not shun going to these seminars just because you heard in the papers that people lost money in the markets even after receiving education with regards to trading and investment. Understand that even the best systems in the wrong hands or wrong psyche can still lead to loses. As such, continue to learn and study the market, you might just be the next millionaire trader.
I have friends in the financial industry selling financial products. Some of them are very knowledgable and they are also traders and investors too. If you need to get a financial planner to help you invest wisely, try to get a financial adviser that knows how to analyse the market independently and can explain to you in detail various financial products being offered and how it is relevant to you based on his or her own personal experience.
However, I have also chanced upon some financial advisers that don’t really meet the mark. These are the types that bang on their stregths to sell products, their salemanship. They lack in depth knowledge of the markets and sometimes show disgust when you actually ask them too many questions that they can’t answer. This have led to some financial journalist to actually make statements that hurt the whole industry if taken in by their readers. Statements that the financial industry is driven entirely by the vested interests of big finance is everywhere at the moment and this is more apparent in the States and in Europe.
I believe that the financial products provided by the various finance firms do have a role to play as they provide the masses with opportunities that would otherwise not be available that easily to the average retail investor.
Take note however that the last thing the finance industry wants is for the masses to start learning about shares and various ways to trade and invest. If you could make your own trades and invest independently, most likely, you would not buy financial products that pay out little but come tagged along with fat fees.
In the words of Tom Bulford from Moneyweek, he said:
What the industry wants is for you to hand over your money to the professionals, have it stuck into funds that routinely underperform, and pay a fat fee for the privilege.
I believe that there is still a place for such products. Not everyone would want to put all their money in risky markets and penny stocks. Some would rather have a good nights sleep and earn lesser than be disturbed by every move in the markets caused by a sudden release of financial data. This is just not everyone’s cup of tea.
As such, I believe that the best way forward is for you to educate yourself in matters related to finance. Be hungry for knowledge, analyse the situation, have an overview of things and decide the next course of action to take. Once you understand that there are avenues for you to do some risky investments, you might want to allocate a certain percentage of your portfolio to less risky products provided by the big firms. In fact, you might even learn a few tricks or two to make more profits and at the same time pay lesser fees!
Ardy is a Professional Forex Trader specializing in the Forex market. He trades using both Technical and Fundamental Analysis and mentors other traders how to trade the Forex market using proprietary trading strategies which he has developed over the years. He started investing in equities in 1999 and trading Forex in 2008. He is the founder and lead currency strategist @ Forexachievers.com