MacroBusiness Radio: Trading psychology

Following from Houses and Holes podcast yesterday on his views before the RBA rates meeting, here is Chris Becker A.K.A The Prince, our resident trader talking with Gunnamatta about trading and beginning in the markets.

Comments

  1. I’ve never had enough money to trade and wouldn’t know where to start if I wanted to. (ie. what broker do you pick).

    That said, I found everything you said just to be pretty much common sense.

    • Thanks.

      You can start with just a few thousand bucks – or even a couple hundred – and learn most of the fundamentals.

      Just 2 caveats:

      1. No you wont make a living on $2-5K (although it has been done, I know a guy who trades AUD only and started with $2K and makes a living) but it can help you in your overall investing education, so should pay off with your other investments/savings.

      2. You MUST be prepared to lose all of your initial investment. I consider this a well paid education and better value than doing most expensive courses.

  2. Thanks Chris. Two great points I agree with:

    1. The market is made up of people
    2. Know yourself.

    I know myself, therefore I don’t trade!

    • That realisation can save you a lot of money and heartache in the end.

      Although edited out, I also spoke about the analogy (urban myth?) of Pat Cash’s training partner, who was a better player on the training court, could read Pat’s forehand, backhand – everything.

      But once he got in the real arena, with a crowd watching him and a skilled hardened opponent, his game fell apart.

  3. Yeah I spend 100% of my income so I’m out for a considerable length of time. I think that tells you where I am in the income brackets given my not so marginal propensity to consume.