Today, many analysts compare the increased public interest in speculation in the crypto currency market with the dot-com bubble, which is also called the Internet boom of the 90s. Shares of high-tech Internet companies in those years grew by leaps and bounds for several years in a row, thereby attracting the interest of many inexperienced investors, including housewives and ordinary hard workers, similar to today’s interest in the crypto currency market.
Stories of how someone got incredibly rich on bit coin excites inexperienced minds and attracts the seemingly easy money. Therefore, many people are looking for investment “gurus” on the Internet (who mostly make money not on the market, but by giving advice on stock trading) to find out from them where to invest money in order to quickly and earn a lot.
When people strive to get rich on the stock exchange, they accept market risk without the slightest understanding of its nature, the obvious “overheating” of the market is evident. And the blame for everything is banal human greed, which only plays into the hands of stockbrokers. In the collapse of the dot-com bubble, the losses were enormous: many investors not only lost more than 70% of their funds, but some even took their own lives.
Psychology plays a primary role in stock exchange trading. Despite the fact that today some of the transactions are still performed by robots (and their share is growing all the time), still living people are behind the majority of buy / sell orders. Many people call this process a game, but this is only apparent ease. Investing is a difficult process that requires concentration of effort and time. This cannot be done spontaneously. Of course, luck is present on the market. And some stories about multiples of the nested capital are also real. However, in most stories of success in trading behind the scenes, there are numerous “leaks” of deposits and unsuccessful investments. And if we evaluate the success of a trader not by one extremely successful deal, but in general for the entire period of work in the market, it turns out that trading on the exchange is not always a rewarding job.
Therefore, the lessons of all kinds of “gurus” of the market, who promise to teach you how to earn 30% of the deposit per day/month / year, should be treated critically. These people make money on a person’s faith in the possibility of easy and quick earnings. In fact, no one will ever be able to guarantee profitability in the market if these are not risk-free assets (but the profitability on them is not what attracts most novice investors), and only a small proportion of professional investors are familiar with the instruments of “hedging ” positions.
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But this does not mean that a novice investor does not need to learn. Constantly educating yourself, shape your investment portfolio taking into account your personal goals, attitude to risk and experience. As you gain knowledge, move from simpler tools to more complex ones. You can learn a lot from all kinds of courses about trading on the market: a description of tools and rules for working on the market, basic indicators and how to use them.
But you need to trade either by yourself, understanding thoroughly what strategy you are using and why it suits you (even if you copy someone’s transactions), or through a professional manager. But you should contact trustees only when the amount of funds available to you is significant, and there is little experience. With a deposit of 30,000 – 50,000 dollars, you can form a starting and fairly conservative investment portfolio on your own (for example, 60% of shares and 40% of bonds). Then, gradually forming, you can expand the range of investment instruments and increase the share of risky assets. But, in addition to independent learning the basics, you will also need the ability to get around the typical mistakes made by all novice investors.