For centuries the idea of trading has provided immense amounts of pleasure and pain for millions who have been involved in this pursuit of riches.
Many individuals who trade do so without an understanding of economics or economic cycles and as a result they fall victim to their own emotions of greed and desire.
Although economic challenges have occurred for thousands of years in more modern times the same irrational behaviour has won and lost many fortunes.
One of the most successful investors of the modern age is Ray Dalio from Bridgewater Associates, his company manages well over $100billion of assets and his personal net worth is over $18billion (April 2019) He created a video called how the economy works and I can recommend this for anyone who wants to get a better understanding of markets.
You can see it here – http://anisometric-inc.com/one-of-the-best-ever-explanations-of-how-the-economy-works
Dr Alexander Elder looks at the psychological aspect that is required for trading. The largest factor that influences the financial results of a person is their state of mind.
An example of a first-rate trader/investor is George Soros. He famously made $1billion in a day during the financial turbulence of 1992. George Soros is a billionaire with an estimated net worth of $8.3billion (May 2019). He lays out his financial principles in his work ‘The Alchemy of Finance’ and to view it you click here – http://anisometric-inc.com/billionaire-george-soros-on-his-financial-strategy
The interesting thing about trading is that even though there are only two directions that a stock can go, up or down, the amount of ways that an individual can work within those parameters are almost infinite and the disparate results of individuals show that in the same market economy some investors will lose everything while others will make a fortune.
Recently the topic of crypto currencies have entered the mass consciousness as the rise of Bitcoin and electronic trading platforms have inspired a new generation of traders (or speculators) to follow the dream of getting rich quickly.
Alexander Elder looks at the psychology of trading and how to apply those insights to make you a better trader.
There is no single right way to success, each of us have our own journey and even successful billionaire investors such as Warren Buffett and James Simons have incredibly different ways of looking at stocks and investing.
The right answers are the ones that enable you to obtain the goals that you set for yourself.
Trading for a living
Author: Alexander Elder