Should I Invest in Capital Markets?
To get to the answer, first, we need to be clear about why should anyone invest in capital markets? If you are conscious about money investment or just skeptical about everything like me, then this question might have emerged in your mind already. This question can be tagged in both simple and complicated. In simple words- to make money. In complex words- to lose money. Wait. Don't get me wrong, I can explain.
I think the first one doesn't worth explanations. So, let's go for the second one. 95% of new traders fails. Most of them returns with nothing but bitter experiences and never come back. Those who comes back runs the same mistake. If you don't want to do the second one, then you have to know your game.
Game? What kind of Game? Well, it's not that hard. A simple game of keeping yourself from deceiving yourself. If you can be steady in the cyclone of money in your computer screen, then YOU WIN. It may seem very governable. But once you started, trade with real money, the actual hit begins to feel. When you see thousand dollars opportunities popping in you computer screen, it's very common to lose common senses. You have to build the mentality to research deep inside any news even if it from a brand portal and rigorous discipline to keep yourself steady.
When you learn to manage your mind; you'll start making money. So answer to the question is, if you think you can stick to disciplines, even after losing money and ready to invest your mind into the continuous development of your knowledge arsenal, then you are all square to jump in. If you are not very comfortable about losing money, then my humble advice would be- invest your money and mind some other place that you are interested in. Never-ever stake the money you can't afford to lose.
Didn't mean to disappoint you. But this is the fact. Every day thousands of new traders and investors get in this field, with the hope of financial freedom for themselves and their families. But return with empty hand and distorted self-confidence. The reason behind; they never treat the Capital markets as a tangible business rather treat it like solely gambling. Hence the odd go averse them.
In the nutshell- if you want profits, you have to treat this like a real business. So, you should do everything that you would do before starting a business. Having a clear vision of the key points (what you are actually gonna do, what the market is all about, who are standing opposite to you, what are the risks) are the crucial terms in term of business. So that's what you are gonna do here too. Do your best research yourself. Don't keep yourself obscure about anything. Save yourself from HYPES (this blog can help you with this one). Above all, try to enrich your knowledge base before jump in.
Don't get disturbed by learning new things. I can bet, you'll start to enjoy as soon as you start making money. You will be connected to the world in a whole new way. As each and every news in the world affects financial markets one way or other, you'll see the world in whole new perspective. Sometimes you may find yourself forecasting the economic aspects of a country or even get a profound political perception. In every manner, a prudent investor is always a wise man. Warren Buffett is a living paradigm.
So, if you want to hear from me, I'll say every person should invest. Whether he's a college student or retired person, full-time job-holder or a home-maker. The capital market is never limited to Forex or Stock indices. You can invest in less volatile markets such as securities or bonds for certain returns. The greater the returns, higher the risks. Make your choice. If you can take on risks and have less responsibility on you, you can go for more volatile markets such as forex, share markets, penny stocks or even more risky- Binary options. If you are retired or have family responsibilities then you should go for steady income, like bonds, securities, mutual funds or ETFs. Again, it's all up to you. Do your own research. Don't make yourself dependent. Best of luck for you.
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