Where to start with trading

 

‘You have to start from where you’re at.’

There will always be others who are starting ahead of us in the queue – people who got lucky … who got a leg-up in life … who began from a privileged position …

It’s enough to make most normal people wonder ‘what’s the point’?

What’s the point in trying when we’re already so far behind?

What’s the point in trying when my efforts are achieving so little right now?

What’s the point in trying when others seem to find it so easy, with so little effort?

This is the single biggest hurdle for people having success with trading – the feeling that this is not for them … it’s for people who’ve already got lots of money … for some kind of elite investor sect that ordinary people aren’t a part of.

One of the reasons I set up Trader’s Bulletin was to prove to people that this didn’t have to be the case – that there were ways in for ordinary people, with a little bit of spare cash, and some big ambitions for it.

So, how do you get started, no matter where you’re starting from?

I expect most people are facing at least one of these hurdles, if not, all three …

• Not enough money
• Not enough knowledge
• Not enough time

How to start trading when you don’t have enough money

If you make a 10% profit off a £10k fund – that’s worth having. If you make 10% profit off a £200 fund – well, you might question whether it was worth the effort you put in.

But we can only start from where we are.

Feeling financially powerless is a trap – it makes us want to blame others for our lack of fortune. I look at my kids’ attitudes to making money – they’re just not fazed by starting at the bottom. One of my sons, when he first started secondary school, ran a nice little business selling sweets on the school bus (until his mum cottoned on to what he was up to) – he realised he had captive customers for around 45 minutes, so took advantage of them, and was bringing home piles of pound coins each day.

The size of your trading fund may be a measure of your wealth, but it isn’t the measure of your financial power. Financial power is about a mindset that doesn’t get overwhelmed by modest beginnings and numerous setbacks.

I find it much more useful to think of profits in terms of percentage returns than the money hitting your account. Focus on how long it’ll take you to double your money (obviously returns are variable, so this can only be an estimate). As a rough rule, divide 72  by the percentage return you’re getting. So, if you’re making 5% a month, you can be looking to double your money in less than 15 months.

Keep doubling your money, and it doesn’t take long for the profit figures to become very large indeed.

You can find specific tips on trading with small funds HERE.

How to start trading when you don’t have much market know-how

Some of the most dangerous traders I’ve ever come across – the people who wipe out fastest – are the ones who think they understand the markets.

If you don’t know what the markets are going to do – you’ve understood the most important lesson in trading. Because no one does know!

There is no shortage of good, free trading information available online [link]. So start small, and start learning. Using a demo trading account means that you don’t need to risk a penny while you’re still finding your feet.

How to start trading when you have no time

You can certainly spend a LOT of time trading. You can watch charts, study patterns and try to predict what’s coming next.

Or, you can look for a daily or weekly signal … then place a set-and-forget trade … and get on with your life.

Stats suggest that traders who are LESS active, actually make MORE money.

Of course, you’ll learn faster if you’re trading more – but if you wait until you’ve got time to spend hours and hours studying charts, you’ll probably never get started.

Getting started is more important than creating the perfect conditions to get started.

Yes, we may wish for more favourable conditions. Our starting point may not be ideal, and progress so far may be slow, or non-existent. But we have a choice – to accept the circumstances and focus on doing things … or to use the conditions as a reason for inaction.

We have the resources. It’s just up to us to make the decision to put them into action.

 

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