The Psychology For Any Precious Metal Trader
- 2 years ago
The Psychology For Any Precious Metal Trader
A trader’s mindset is very important. Psychology is infinitely more important than how much you have to invest.
A trader with little money but strong psychology is infinitely better than a trader with a weak mind and lots of money. Why is that? Because a person with the proper mindset can double, triple or quadruple their money while a person with a poor psychology can lose it all overnight.
The key is to be detached with your money. It is better to trade with money that you can spare rather than money you depend on (life or death money).
Can you hold a trade? What happens when the price takes a plunge? Do understand that gold and silver trading is like buying a house. No matter what the price of a house will always go up but it is a matter of how long can you hold.
Above all, remember not to rely on gold and silver trading as your only source of income. Most people, when they put all their eggs in one basket make bad decisions because it represents all or most of their wealth. When you have income coming in from diverse locations or even other commodities you are trading with, you will make better decisions.
Knowing when to exit is critical as well. If you feel that you have earned ‘enough’, it’s better to cut the trade and invest it in another commodity. Likewise, it is okay to cut your losses and invest elsewhere.
Next we will look at why you should invest in gold and silver now.
A trader’s mindset is very important. Psychology is infinitely more important than how much you have to invest.
A trader with little money but strong psychology is infinitely better than a trader with a weak mind and lots of money. Why is that? Because a person with the proper mindset can double, triple or quadruple their money while a person with a poor psychology can lose it all overnight.
The key is to be detached with your money. It is better to trade with money that you can spare rather than money you depend on (life or death money).
Can you hold a trade? What happens when the price takes a plunge? Do understand that gold and silver trading is like buying a house. No matter what the price of a house will always go up but it is a matter of how long can you hold.
Above all, remember not to rely on gold and silver trading as your only source of income. Most people, when they put all their eggs in one basket make bad decisions because it represents all or most of their wealth. When you have income coming in from diverse locations or even other commodities you are trading with, you will make better decisions.
Knowing when to exit is critical as well. If you feel that you have earned ‘enough’, it’s better to cut the trade and invest it in another commodity. Likewise, it is okay to cut your losses and invest elsewhere.
Next we will look at why you should invest in gold and silver now.