The Truth about Trading

Share trading is not as lucrative as anyone thinks. With the uncertainty of the market, you won't be able to turn $100 into a million, unless you have a big bankroll to make it happen and lots of time in your hands. Its natural for newcomers to lose as much as 10 percent of the capital. The word ''trader'' also conjures up a rather lonely and boring image for people. Someone who is sitting in front of two or more computer monitors, studying and crunching numbers everyday, vigilant not to lose any window of opportunity. So before you jump into trading there are some serious points that you have to consider.

Before you become competitive, you need a very time-consuming education. Its not just about charts and figures but also reading up on various concepts. You may end up asking yourself, if the stock market is so unpredictable, then what's all this research for anyway? Don't forget the fact that these can all bore you to death, as if staying in front of your computer all day reading charts is not enough.

If you want to make consistent profits, you need to trade full time. At the same time, its not also something that you have to do out of necessity. Quitting your day job is just going to make things difficult and push you further to the edge, battling with bills and constant losses. You have to turn it into a hobby that you love to do no matter what.

There are hundreds of people out there who will offer you free education to sell their product. Its similar to a freemium business model. The basic services are free, then they will eventually market you paid services in the form of an ''upgrade''. Its great to get useful information from the pros, and finding a mentor is a good move, but that's like separating a handful of chaff from a truckload of weed. These trading seminars and product pitches are specifically designed to lure you in to make a sale. Think about it, why aren't there any hundreds of Buffet and Lynch if all you need is just to copy the winners? Unless you can copy their decision making process, and make every financial move that they've done to a tee – granted that you have the money and the opportunities – its impossible.

Last but not the least you need time and genuine interest to do this in the long run. No matter how much money you have, unless your committed to trading, you will not be able to double it. For a newbie, even earning a hundred bucks will take weeks.

However, its not all that bad. You're your own boss. You don't have to deal with layers of bureaucracy and get stuck in a routine 9 to 5 job. If you know how to manage and diversify you portfolio you can make decent money, instead of it just sitting in the bank. You can also set up trading systems that will work long term. If you prefer to take control of your finances, and work well in a fast paced competitive environment, then see if trading shares is for you.