How Can Trading And Investment Education Boost Self Employment?

Raunak Karwa Mar 22, 2020

“Give me six hours to chop down a tree and I will spend the first four sharpening the axe” – Abraham Lincoln.

Trading and Investing have undergone seismic changes. Two decades ago, if you wanted to invest or trade, you’d have to get a full-service broker, obtain advice and accordingly transact. DIY or do it your own is a recurring theme within the financial services landscape, and customers today have the opportunity to conveniently take such calls on their own via platforms, discount brokers and easily available information. Unfortunately, financial literacy and trading and investment education are still extremely low. This has meant that consumers have taken bets sans thorough analysis and ultimately been on the receiving end of financial losses, in some cases large enough to wipe out life-long earnings.

A doctor goes through a long education career before operating on patients. Similarly, an engineer tests himself in a protected environment before designing and building structures that ultimately benefit the larger population.

Trading and investing have very low entry barriers and can be a consistent and independent business if executed thoughtfully and planned conscientiously. The goal for every individual should be to bridge the gap between a ‘Trader’ and a ‘Professional Trader’.

Professional Traders, with years of experience, are at ease with the above-mentioned concepts, however, first-timers or inexperienced traders may not have a thorough perspective. More often than not, because customers are devoid of such concepts, trades are executed purely on gut, tips and other external factors over which you have limited control. This may be successful under certain scenarios, however, if you’re looking at building a career around trading and investing and generating self-employment, life will eventually catch up. A good education set-up will delve deeply on such concepts, help in building, evaluating and executing your trade plan, working on the psychological impact positive and/or negative trades may have and most importantly, clear concepts and terms that are freely used by the media and fellow traders.

Education and practice are extremely important in maintaining a long run in the markets. Continuous learning and re-learning are key to ensuring you’re adequately updated and your skills are not obsolete. Trading simulators have allowed users to repeatedly test their strategies and learnings. Further, being a part of a trusted community, and trading while discussing your trades allows you to bridge the gap and build your confidence in a periodic and consistent manner. These are extremely important if your ultimate goal is to be self-employed, and make trading and/or investing your primary mode of income generation.

Your win size builds your confidence, but there is a stark difference between being confident and over-confident. Sticking to your trade plan and adhering to the defined rules ensures your emotions are kept in check. Similarly, a losing trade should not surprise you. Education and practice, ensure these novel concepts and ideas are drilled, finally giving you the best shot at being self-employed, generating consistent returns and most importantly, being the master of your own time.