O que Precisa Saber antes de Começar a Investir nos Mercados Financeiros Psicologia do Trader/Investidor

What You Need to Know Before Starting to Invest in Financial Markets – The Psychology of the Trader/Investor

Investing in Financial Markets may seem difficult at first. Especially if you don't have a lot of computer knowledge, at least from the User's point of view.

So, I'll start by telling you that, long gone are the times when, in order to invest, we had to go to a bank or talk to a professional who would correctly allocate our money.

Currently, with just a smartphone and an internet connection, you can make you money work for you.

Put the Money to Yield. Yes this is the Concept. Don't think otherwise.

If someone told you that they got rich overnight trading or that they “can get rich” in just a few months with Trading. Or that he can take a guaranteed monthly salary. This person is probably a scammer who lives (and got rich) not from trading, but cheating and deceiving common people who want to learn how to get out of this financial mediocrity that society confines us just so that some can have…more money.

If you want a fixed monthly income, stability to pay the bills, or income with little risk, the best solution you will unfortunately find is, to work for others.

If you want to get out of mediocrity, know right away that, in the short term, it's not possible. Come whoever comes. Believe. I've been doing this for long enough and I'm not afraid of any pseudo-trader who will say otherwise.

For those who earn thousands a day, I just have one question, what is your current bankroll? But let's talk about percentages? It's just that if you have a bankroll of 100,000 euros and earn 20% a year, that's 20,000 euros/year. Divided by 12 months, it's an acceptable amount, isn't it? Yeah, but not quite.

There will be months when the market will not give you any money, or even take a little from what you have. And we're not even talking about crises, where the market could fall by more than 20% in a single month, as happened very recently due to Covid.

Now imagine that you only have a bankroll of €100 and take out 50% a year (even better than professional traders huh? Big machine). Because. Reflected to your bankroll, this will translate to just €50. In other words, you won't even “see” the profit, you will feel that “trading gives nothing” and that it's better to dedicate yourself to Placard or scratchcards. Exactly.

In short, it is the wrong expectations that bring us to trading. The same wrong expectations that later drive us away from trading.

Which are they? The expectation of earning a lot of money in a short time. This expectation ends up driving us away from trading. Why? Lack of capital. Plain and simple. If we don't have a lot, we won't gain much.

So trading is always a long-term game and never a short-term one. Want to earn big? You have to have a lot to invest. If not instead of thousands a day, you will earn cents and believe me. It's for the tough and not for the quitters.

It's like I told you, if you want quick cash, try the scratchcard, the placard or even the EuroMillions, who knows. But I also assume you've heard that story that says you're more likely to get hit by lightning (on a sunny day) than win the EuroMillions. But that's it, each one with his luck.

For my part, luck, unfortunately, is something I don't have very often, so I confess that I rarely (or almost never) play in EuroMillions. The same for scratchcards or placards, betclics and the like.

So in terms of psychology, what you need to know before starting to invest

Do not support short-term earnings expectations.

Think of your gains and losses as a percentage of the capital invested per trade. If you invest 50 euros, you can't expect to earn 10,000, but, in a good move, maybe 10 to 20 euros, or maybe even double the investment.

We are talking about profits in the order of 20 to 30% in a position. In other words, if you had opened a position of 50,000 euros, then maybe you would then look for those 10 or even 20,000 euros, which represent what? Precisely 10 to 20% of the initial amount invested (50,000) and not just €50. The amount to be gained is then proportional to the amount invested. We invest more, earn more. We invest less, earn less, but always proportional in terms of percentage. So always orient yourself by percentage and not by the Lamborghini that the other Trader has and that you (yet) don't have.

And again, an open position earning money usually stays open for a long time. It may even have to stay open for an entire month, so forget about Day Trading. That does not exist.

And above all don't forget my advice in the previous articles by the hand of master Bruce (Be water my friend. Be water).

Grateful to have you there.

L. R. Neves.





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