Stock markets are the most popular markets for speculation, due to their enormous size, liquidity and their tendency to move in strong trends.
Presumably, these characteristics would enable investors to have tremendous success.
However, success sometimes is very limited mainly for the following reasons:
Many investors come with false expectations of the profit potential and lack the discipline required for investing and trading.
Short term trading is not an amateur’s game and is usually not the path for quick riches.
Because stocks may seem less familiar, it does not mean that the rules of finance and simple logic are suspended.
One cannot hope to make extraordinary gains without taking extraordinary risks.
A trading strategy that involves taking a high degree of risk means suffering inconsistent trading performance and often suffering large losses.
Trading in stocks is not easy — if it was, everyone would already be a millionaire — and many traders with years of experience still incur periodic losses.
One must realize that investing and stock market trading takes time to master and there are absolutely no short cuts to this process.
