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Setting Your Life Up Before You Start Trading Stocks

First time traders are more often than not facing various difficulties that are easily avoided with a bit of planning.

By Andrea DawsonPublished 6 years ago 3 min read

Once you start trading your entire outlook on the world will change. You’ll become wrapped up in stocks at the expense of everything else. It’s so alluring when you first begin to see money appearing out of thin air, so you won’t be able to escape its clutches.

Maybe you’ll have a great deal of success and everything will turn out okay. Even so, you’ve got to get your house in order before setting off on your wild adventure. Here are a few boring things everyone must do before they begin trading for real.

Copying Our Education System

Think about how the education system works in this country. You go to school then it’s time to find a job in the real world. The same kind of thing needs to apply here even if you have lots of money saved up.

You could read lots of forex trading for beginners books if it’s the route you want to take. Will you still lose money in the beginning? Of course, but at least you’ll know exactly what you’re doing.

Building an Emergency Fund

There are a few reasons why every trader should build an emergency fund before starting, but a couple definitely stand out. First of all, you can wake up one morning and find out everything is gone.

It’s also an effective way to keep your mind sharp. You’ll know there is a chance you’ll lose everything, which can stress lots of traders out. You will be okay if you know there is something to fall back on.

Spend Some Time Practicing

In the past, there were no second chances when you invested in the stock market. Now you get to play around without putting any money on the line. You’ll be able to start today if you download an app to your phone.

Find your favorite app and spend time on it before you think about using real money. The only downside is the fact you won’t bank any actual cash. It’s better than throwing it away when you’re unprepared.

Paying Off Your Debts First

If you want to create true wealth when investing it will be thanks to the compound effect. The same thing can bite those who are not careful. Ideally, you’ll pay off high interest credit cards before investing.

You should always take care of your secured loans too. Don’t let anyone try to take your home from you after a few bad months. You don’t need to repay all your debts if they won’t crush you in interest repayments.

Take Advantage of Free Money

Anyone who is saving for their retirement will already be trading, but it’s a completely hands-off approach. Even though trading this way is boring you should always take advantage of free money when it’s available.

If your employer is willing to match your contributions jump on it fast. The reason you’re investing is because you want to be financially secure. People are losing out on billions of dollars.

Asking Professionals for Help

It’s almost guaranteed you’ll be able to meet lots of full-time traders if you live in a big city. You should attempt to pick their brains if given the opportunity. It’s surprising how much tips you’ll get.

If there aren’t any special events, email someone and invite them for a coffee. What is the worst that can happen? If you ask enough professionals a small percentage of them will take you up on the offer.

It Won’t Take You Forever to Get Started

You could start trading now if you really wanted to, but don’t build bad habits from the start. Spend a little time preparing yourself. If you carry out everything we’ve talked about today you won’t regret it.


About the Creator

Andrea Dawson

A fitness blogger and a personal trainer.

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