6 Rules Traders Have to Live By To Get Rich

by Andrew McGuinness     Jul 16, 2019

With the state of the world’s economy, wealth is generated faster than ever before in mankind’s history. Additionally, money and its value is changing faster than ever as well – with technologies like blockchain redefining the way value is made and the same strategies from today are not going to be applicable anymore in 10 years from now. The great news for everyone is that it’s easier to get rich than ever before – anyone can do it with the right mindset and work ethic. Traders are in an ideal space to make a lot of money once they put themselves into the right mindset.

Let’s look at the 5 rules traders should follow to get rich as quickly as possible.

1) Working in corporate won’t get you rich

This applies to being a trader, too. Trading for a big corporate setting can provide you with some safety nets, but a large chunk of profits is going to disappear as they largely belong to the company you’re trading for, and not for yourself. Most corporate places have upper limits on how much you can earn. If you’re planning to earn more than a couple of hundred thousand dollars per year, you’re going to have to go into some non-corporate routes.

2) Small profits are the building block for big profits

Anyone can make a living from trading if they’re playing smart. There’s no shame in going in on small profits, in fact, small profits are safer than holding onto a stock hoping to gain more profit. Often this results in holding on for too long and the value dropping, lowering your profit in the process. Any profit is good and profits can be leveraged to add to your capital if you don’t need the money for anything else.

3) Stock trading is all about opportunity

In the stock market, your educational background, family background and anything else about you doesn’t matter. The stock market doesn’t care about your personal circumstances, and millionaires and everyday Joes are playing on the same playing field. Regardless of background, trading is profitable for anyone willing to put the time and research in. Age also doesn’t matter – anyone with the time management skills can do it.

4) Do what works for you

There is no formula that you’re going to stumble across on the internet that’s going to magically work for you and make you rich. It’s important that you explore strategies and markets that work for you – maybe markets that you have a lot of previous professional experiences in or have a personal interest in. Any trader will need to explore different tactics to see what they’re comfortable with doing, which will require some trial and error, so the obvious expectation is to lose a few trades in trying this.

5) Adapt to new technologies early

Different technologies are emerging in the finance industry – cryptocurrency and blockchain technology just two to name with wide reaching impact. Technology has always made a significant impact on trading, with the internet being the largest revolution in the finance industry. A lot of progress is done in big data and financial research, allowing you to have access to the type of information that simply wasn’t available a few years ago.

6) Staying ahead of the market shifts

The markets are constantly changing and evolving. It’s important to understand how markets react to geopolitical events. Staying on top of the latest news is critical to understanding how the markets might move and how stock prices can react.

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