4 – The Advantage of being Young
Traders who start out young when they have a low income is something I consider as an advantage as they will have fewer funds accessible. This will allow them to lose funds that will be less considerable in their near future as their income rises. A young trader will value $1000.00 more then someone who has been in the workforce for several years making a $75,000.00 annual income. The advantage of starting out young is that the losses you make at the beginning will not have much of an impact on your all-time performance as your income should rise in correlation with your experience. We could advise any new trader to start out trading with $1000.00 regardless of their age and income. However do you imagine a person with a $75,000.00 income to take their $1000.00 investment seriously, do their homework and follow their stocks on a regular basis? Unfortunately if you want to have the drive to learn, the money you invest must be valuable enough to you for you to follow your stocks on a regular basis. Putting enough money for you to care about to follow will create a commitment between yourself and your portfolio, and this is what will drive you to learn and succeed in the long term. As the years go by and you gain more experience and income, you will have to add more funds to your portfolio as $1000.00 next year will be worth less than it is today. The first 3 years of trading are critical years, because if you survive you should be able to start making profits in the stock market.
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