3 Decisions To Make Before You Start Trading

These days, you’ll find thousands of articles online telling you just how easy it is to start trading. Technology has changed the game, opening the doors to millions of new investors. You don’t need any financial expertise or experience, nor do you have to quit your dayjob.

The truth is that it is really easy to start investing these days. AI truly has made the difference projected by experts not so long ago. I personally know a number of beginners – teachers, artists, secretaries – who have made good money investing.

However, you do need to be careful in how you go about getting started. Jumping in headfirst is rarely a good idea. Consider the following 3 decisions you need to make before you start trading.

Trading Strategies

There are different types of traders, who use a range of strategies to make their money. They have carefully chosen their investing strategies, but they are really just finding what is right for them. Because when it comes down to it, everyone’s personality is suited to particular strategies and not to others.

For example, the most basic choice you’re going to need to make is whether to be a “buy and hold” trader or an “active” trader. In other words, are you playing a long game or would you rather be making trades every day? Some people are suited to making money with quick decisions about a range of investments, while others don’t have the time or personality to do so.

Figure out what kind of trader you are before getting started. This can save you a lot of emotional pressure as well as money.


Chances are, the reason you are getting into trading is that technology has made it so much easier. Unless you have a background in economics, you’re probably not much of an expert. Nor do you need to be. Technology really will do most of the legwork.

However, you need to decide what you’re comfortable with. How much control do you need to have? Will you let AI make the decisions for you? And do you even want to know the gritty details?

Again, this comes down to personality. Someone who is slightly technophobic will take a very different approach to someone who lives for every new AI innovation.

Risk Aversion

Finally, one of the most significant factors in every trader’s life is their aversion to risk. Everyone is somewhat risk averse, but some are far more so than others. There are people who are willing to risk losing all their capital for the chance to make big money. Others are willing to risk their money only on investments that are almost guaranteed to succeed.

If you are very risk averse, you are going to need to decide how far you can push yourself. By all means choose safe investments, but see if you can move a little bit outside of your comfort zone.

On the other hand, if you are a big risk taker, you need to work on figuring out just how healthy that is. Are you taking risks because you are confident in the evidence before you? Or do you get a thrill out of it? Trading should never be equivalent to gambling.

Getting into trading is very easy these days, but that doesn’t mean you shouldn’t consider your options before getting started. Think carefully about the above decisions before you take that all-important step.

*** SPECIAL ALERT — July 25, 2020 — TWO of this Year’s Motley Fool Stock Picks Have Already Tripled and Two have Doubled! ****

We have been tracking ALL of the Motley Fool stock picks since January 2016. That’s 4+ years, 54 months and 108 stock picks. As of Friday, July 24th 2 of their 12 2020 stocks picks have already tripled (TSLA, SHOP). In addition, 4 of their 2019, 8 of their 2018, 7 of their 2016 and 10 of their 2016 picks have also doubled. Best of all, over these 54 months, the average stock pick is up 111%. That beats the SP500 by an average of 87%. And that’s even accounting for all of this COVID mess that has wreaked havoc on some stocks but presented opportunity for other stocks. THAT is how the Fool does so well!

  • Shopify (SHOP) – April 2, 2020 pick and it is already up 163%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 107%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 26%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 123% compared to the SP500 -7% so it is ahead of the market by 130%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 46%
  • Netflix (NFLX) picked November 21, 2019 and it is up 42%
  • Trade Desk (TTD) picked November 11, 2019 and up 111%
  • Zoom Video originally picked Oct 3 and it is up 234%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 44%

Now, no one can guarantee that their next picks will be as strong, but our 4.5 years of experience has been super-profitable. They also claim that since inception, their average pick is up 424% and now we believe them. You sure don’t want to risk missing out. Many analysts are saying that we have passed the bottom of this COVID crisis and stocks will recover quickly. So make sure you have the best stocks in your portfolio.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

CLICK HERE to get The Motley Fool’s Stock Picks for just $99 per Year! 



Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW

(before it’s too late)

Leave a Reply

Your email address will not be published. Required fields are marked *