I wanted to share this video on my website to put it in the spotlight as the more you trade, make mistakes and gain experience you find this video more and more relatable.
My favorite part was when the presenter expressed that once you lose the excitement and emotional attachment to your positions as they’re only numbers portraying the value of your positions .
It’s been a while since I watched this video and I am going to give It another view as I remember it being enlightening, however I currently have a list of drafts which need to be reviewed and published and I’m eager to get the task done.
Regardless of what I have to say or what my opinion is, you should definitely watch this video If you are interested trading stocks or crypto as it mostly discusses about the psychology, mentality and mindset of the path to becoming a profitable trader.
I’m personally looking to get back into trading and avoid alcohol because If a trader such as me or you stays sober, has a strategy which is proven to work, has patience, and is detached from the fluctuations of the position value, sets a stop loss, and take profit, avoids using excessive amounts of leverage if any is bound to become profitable.
Trading is a very enticing activity compared to just Investing, especially for beginners new to the game, studying the graphs, the fluctuations, recognizing patterns and putting their own money on the line with the goal to learn and make profit.
My goal is to become emotionally numb to the value fluctuations of crypto coins for my open positions. I used to trade stocks and I lost way less money and actually had some savings.
I am under compulsion that the only rational thing to do when It comes to trading (stocks & Crypto) Is to diversify your portfolio 50/50 Between both.
The Value of Money is No Laughing Matter
If you start from zero, you must find a source of income, the most common way is to find a Job.
Let’s say you have no education, no qualifications, but you have ambition. You get a minimum wage job, live bellow your means for a while, put practice trading in the stock market on E-Toro and trading crypto on binnance.
You put down another 1/3 of your savings budget into an investment account focused on dividend yield on a different platform such as Trading212.
Maybe you’re an ambitious entrepreneur who want’s to start their own business so you split your investment budget into 1/4s. You want to sell custom merch and build your own brand from the ground up selling something you’re truly passionate about.
Either way, you start from nothing. You earn your wage at the end of the month, spend 1/4 of your wage to pay for your utilities, rent, mortgage? You spend another 1/4 on food and nutrition, not the premium fancy stuff, just food with enough calories, protein, fats and vitamins to maintain a healthy Body Mass Index (BMI) in relation to your lifestyle whether its high or low physical intensity.
Investment Budget and Savings
This means you have 1/2 of your wages to use for accumulation of wealth. But saving money in the bank is the worst thing one could do to themselves. (My Opinion) I will explain why I think this. When money is in the bank, it’s wasted potential, meaning that It’s just a number sat in your bank, sure, there is pure liquidity; meaning that you can spend it any time you like it. However I must argue that money intended for spending is not money intended for wealth accumulation.
Let’s say you make 1,000 Euros Per Month
Whether you make more or less, it doesn’t matter, I’m using 1000 euros as an example because it’s a fairly realistic and round number which is going o make the presented math easier.
You get your 1000 Euros, You pay your rent, 150 Euros, You pay your Utilities, 100 euros, you divide 250 Euros into 4 and you get 62.5 Euros to spend per week on food. Now you’re left with 500 Euros.
I don’t know about you but this seems fairly realistic math to me. Let’s say you make more or less, Here are the percentages:
You pay your rent: 15% of your wages, Utilities are 10% of your wages, 25% per month on food/ 6.25 % per week. This adds up to 50%.
Now with the remaining 50%/500 Euros, you could buy some new clothes, buy a new television or a speaker. You could buy a laptop (arguably a good investment). Point being, there is a lot of things you could potentially buy with 50% of your wages or 500 Euros.
Or you can do your best to resist the temptation to spend money on unnecessary luxuries and accumulate your wealth through investing in dividend paying stocks, trading stocks and crypto, or starting your own business selling products you truly care and are passionate about.
To Summarize The Idea
The 500 Euro/ 50% of your wages now becomes 100% of your Investment/Wealth Accumulation budget.
This is how I would personally split that 100%/500 Euro Every Month.
I am fairly stubborn when It comes to adapting to new trends when it comes Video Games, Applications… Brokers.
So essentially, although one may go out their way to find better brokers than the ones I am about to list, these are the ones I have used to past and Intend to use in the future for the sake of developing my comprehension, understanding and authority to speak on these tools.
Crypto (25%)
For trading/Investing in Crypto I like to use Binnance because it’s popular, widely recognized and constantly improving and developing. I know that Binnance is here to stay as far as I’m aware so I know I can trust it as an established Crypto Trading Platform.
By google definition, Binnance is the world’s largest cryptocurrency exchange by daily trading volume, offering a platform for buying selling, and trading over 350 cryptocurrencies with low fees. Founded in 2017, it provides advanced tools, futures/margin trading, staking (Simple Earn), and NFT marketplace access, along with its native BNB Chain ecosystem.
Stock Trading (25%)
For Stock Trading I like to use E-torro.
Stock Investing (25%)
For investing in stocks with the intention to receive dividend yield, my dedicated brokerage playform is trading 212.
Business (25%)
Figure out what you are passionate about, whether it’s computers, arts and crafts, blogging, baking, music; anything that comes to mind.
Use the 25% of your wealth accumulation budget to invest in some items in relation to your passions.
If you cannot figure out, or are not interested in starting your own business, you can invest this money into your passions such as reading by buying books, or buy gym equipment if you’re into working out to develop yourself mentally and physically. If you are interested in fashion, nobody is stopping you from spending your hard earned money on some clothes.
And if none of this strikes a chord you can use this 25% to invest in Dubai Real Estate on the StaKe Platform at www.getstake.com and buy shares of expensive properties as a result receiving monthly rent payments for a percentage of shares you hold in a property. Not to be confused with the Online Casino Platform Stake.
So far to me, it’s an interesting concept. However I have not yet attempted to withdraw funds as there are only two sales windows per year and I enjoy receiving monthly rent payments.
It would be wise for me to confirm whether it is possible to withdraw funds for myself before I promote such a platform but it has my faith.
But at the same time, becoming aware of that given fact. I am not going to invest any more money into StaKe until I confirm whether it’s possible to withdraw funds from it.
As for the previous platforms: Binnance, E-Toro and Trading212, I can confirm that they are legitimate and it’s possible to deposit, trade, invest and withdraw funds.
ZutisBljeg 