Stock Trading and book reading
Some people ask me: "How can I learn how to trade stocks, fast!?"
I always tell them these two answers.
Get a mentor, but you might have to pay for it.
Read a ton of books, but you need to be patience.
When I first started trading, I started reading about it.
When I read, I don't always get a big aha-moment, and suddenly I understand what is stock trading and starting to make money.
It is a very slow accumulation of knowledge.
Instead of learning the entire field of stock trading in one book, you accumulate a few important aspect of trading in one book.
Maybe you're a little confused about what I am talking about right now.
Let me give you some examples
When you read Warren Buffet's highly recommended book, "The intelligent investor" you learn about stocks fundamentals.
What makes a stock rise and fall, and what we can learn from the history and stock trading.
When you read about Peter Lynch, you learn about stock picking and valuation of a stock.
When you read Ray Dalio's "Principle", you can get a sense of how hedge funds make money, as well as systematically set up your portfolio, the macro world of economy, and how to improve your trading strategies.
When you read about Warren Buffet's biography, you learn about how Buffet's accumulated his Billions of dollars in wealth.
Then, one day, all of these connects together and forms the full picture of the entire matrix of trading.
Now you know how to read a company's value, evaluated the market's emotions, you know Mr. Market, systematically improve your stock selection method, pick great stocks to keep in your portfolio and then uses the power of compounding to grow it for years...
When I talk to people about reading books, people always stares at me like I'm crazy.
I recommend them to read books, because there are things I cannot show or tell in a few sentences or a couple of paragraphs in the book.
Books expands your horizon and stretch your mind, so you can get out of the scarcity mindset you have growing up...
That is something I cannot do without actually reading you the entirety of books cover to cover.
I wanted you to learn and grow, but I can only do so much.
It takes a willing soul to open up its mind and walk the talk, so your dimensionality will get bigger.
Big enough to fill the knowledge of trading, and discipline enough keep the money you earn.