What should I trade ?

May 2, 2010 in Blog 4 Comments

The question above is one I often get from people who have never traded before, and they are often overwhelmed at the amount of information out there when they first start looking to trade. Before they realize it they are lost in the maze of Sites , product offerings , newsletters, adverts, seminars etc. The financial world is constantly spitting out more and more information making it really  difficult for a beginner to gain the relevant amount of information, in the right dose, in order to begin a profitable climb of the financial ladder.

In this post , and over the course of the next few post , I will help you answer the question for yourself. However , the answer to the question “What should I trade” turns out not to be so easy after all. When you consider that there are all sorts of products which one can possibly trade.  The small list below would serve as an example. There are Stocks , Bonds, Options, Futures , Commodities , Forex , ETF , just to name a few  Then you also have the slightly more client friendly products like Turbos , Speeders , Sprinters, etc , all of which try to remove the complexity involved in  trading options by eliminating a few of the Greeks  (These are the aspects of Options trading which require a little bit more mathematical sophistication , and which causes several investors to lose their money trading in options.

In order that you might successfully , answer the question “what should I trade?” , it all boils down to a simple word , FOCUS.

In the Next post , I will discuss FOCUS and how it applies to this question, the answer might surprise you. But when you start applying it , your progress would be in leaps and bounds

Until then

Stay Empowered,

Ty.