What Can Model Airplanes Teach You About Trading?
I was devastated!
I just couldn't believe it. I was 10 years old and my dreams were shattered. I never wanted to look at another model airplane again!
But I'm getting ahead of myself. Let me start at the beginning.
When I was about 8 years old my older brother got interested in model airplanes. He had one that was connected to a control handle by fine wires. It flew around in circles whilst he stood in the middle controlling it.
[This was just before radio-controlled planes became popular -that's showing my age!]
And occasionally he would let me fly it.
The first time I flew his plane I was hooked!
I can still smell the fuel and hear the high pitched wine of the engine as I caused it to rise and dip as this fast moving object tried to pull my arm off!
I wanted one for myself. But I guess my parents thought I was too young. So it was some time later and after saving my pocket money for what seemed an eternity that I finally got to buy my own model aircraft kit.
I can remember going into the hobby shop and choosing which one to buy. And then rushing home to get started on putting it together.
I was so excited as I opened the box. And I got all the balsa wood and other materials out on the kitchen table and studied the plans.
The first task was to cut the sides of the body of the plane out of balsa wood. It was a big plane and so the body was quite long.
The first time I did this I was doing it freehand.
So I borrowed my Dad's big metal ruler. And I carefully cut along the line that I had marked on the wood.
But it was still crooked!
I tried once more and then I gave up. And I never made a model airplane again!
You see I wanted my first model plane to be perfect. But I realized that I couldn't achieve that. And so I gave up.
Years later I can still remember the frustration and disappointment that I felt at that moment.
Now what is the point of my telling you about my childhood traumas?
Novice traders often fall into the trap of wanting everything to be perfect before they place a trade. They want all their indicators to line up and they demand a perfect candlestick setup pattern.
Perfectionism has no place in the stock market.
Now, I'm not saying that you shouldn't try and be the best trader you can be.
But accept that you will never know all there is to know. And that you will have to make your trading decisions based on imperfect information.
And despite that realize that you don't need to be perfect to be successful.
Misguided perfectionism robbed me of pleasure as a 10 year old. Don't let it rob you of trading success.
Ordinary People Making Extraordinary Profits!
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The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and hasn't worked for us personally. If you wish to trade or invest in the stock market you should obtain advice from a registered licensed advisor.
Can?t Stand The Heat
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Long Term Financial Vehicles
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Stock Chart Reading
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Outlined below are some of the advantages and disadvantages of mutual funds. Every investment has advantages and disadvantages. But it's important to remember that features that matter to one investor may not be important to you. Whether any particular feature is an advantage for you will depend on your unique circumstances.
The Skinny on Mutual Fund Investing
Mutual fund investing is a lot like Thai cooking. Everyone has heard of it, most know a little something about it, but very few actually know how to do it and do it well. To invest in mutual funds wisely, it is important to have a good grasp on what mutual funds are, how they work, and what the risks involved may be. The fact that mutual fund investments are often considered safer than stocks, options, and other investments often misleads people to think that their investment in mutual funds are risk free. This, as you will see, is not the case.
Exchange Traded Funds Primer
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A Triple Dipper: How to Make 3 Profits on 1 Stock Trade
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Race Horses and Mutual Funds
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Trade Stocks for Real
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Learn to Calculate a Stock?s Pivot Point
Stocks breakout from properly formed bases everyday but many investors don't understand how to locate a pivot point or what patterns to study that may contain this very important buy signal. A pivot point can be described as the optimal buy point or the area at the end of a familiar base pattern where the stock breaks out into new high territory. William O'Neil, the founder of Investor's Business Daily is considered the pioneer of the pivot point in modern times. As Jesse Livermore explains in his book (1941), the pivot point can also be described as the point of least resistance. When a stock breaks the point of least resistance, we are presented with an opportunity where a stock has the greatest chance of moving higher in a short period of time, especially when volume accompanies the breakout.
Hot Stock Investing ... How to Pick Hot Stocks with Momentum Stock Trading
Profitable day traders recognize that momentum trading is among the fastest & most effective ways to harvest BIG piles of cash in the stock market.
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For the last few weeks we have seen the stock market averages going higher and higher each week yet the economic news is still very bad. Is this bear market coming to an end? Will the stock prices and mutual funds go back up to where they were?
Because you don't feel too sure about which stock or mutual fund to buy you decide to become a member of an investment club. Each of the members contribute a certain amount of money each month and then meet to decide what to buy or sell.
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