Every systematic trader has done it. You put in a trade that your system tells you to trade. The trade hits your stop so you get out. Like any good systematic trader would do. Then the market moves in the opposite direction. That urge or regret or whatever feeling you have at that point is wrong if you are a systematic trader. The right feeling is I followed the system so I made the right trade. Many traders get discouraged by market direction. The direction of the market should not leave you feeling discouraged. If it does then you don’t have enough confidence in your system.
There are many markets in the world. You can buy stocks, bonds, or many other things. When you start thinking about buying a physical product it is a little different. Today we want to talk about how to buy gold.
Gold is a precious metal. It has been around since the beginning of time. Since that time it has had value. Precious metals are natural currencies. Gold is in that category. So how do we buy gold?
How to Buy Gold: Buy Physical Gold
We have all seen the commercials. The world is ending and you need physical gold. That is one way to buy gold. You can buy the gold in bricks or coins. There are companies that specialize in this. You can buy a big safe and stuff it full of gold if you want. Physical gold has value anywhere in the world. If you are going to buy physical gold you need to ask yourself how long do you want to hold it? If you buy a brick of gold you are not going to make any money if you sell it the next day.
Today we don’t want to talk about what the brokerage account considers traders. Many people that brokerage firms consider traders are gamblers. They have no clue what they are doing. We want to talk about how to be a good trader.
It’s important to ask this question to ourselves from time to time. We need to ask why is it that we are trading . If you look at people sometimes people will do things and it is important to ask the question why.
What type of Trader Are You?
A man will climb into an airplane and they will go up thousands of feet and jump out. I can’t understand why anyone would want to do that. Some say they enjoy the rush that they get.
There is another man who will go into a building filled with lights. This man is expecting to get rich. He doesn’t understand odds and that the odds are against him. He is looking to have a good time. Some get addicted to it and they feel like they are going to win in the next play of the game.