The thrill of riding a wave, balancing the ups and downs and conquering different difficult situations; ask any surfer and he’d tell you that these are the high points of surfing. If you notice, trading is not very different from surfing. It has the same kind of risks and excitement, albeit financial instead of physical. Maybe this is why surfers can take to trading like a surf board to water. Surely, a surfer’s attitude to stock trading will help you ride the market waves with ease and let you beat the market. Let’s see how-
Whether it’s surfing or trading, you can’t start with risky conditions. Just as you’d start with low waves and gradually move on to high, if you’re new to stock trading, invest when prices are low and start with safe investments. Select well known blue chip companies for your first investment. Though midcaps and small-caps are known to deliver high profits, their risk factor is also quite high.
This Is A Lifestyle
Surfing is not just a hobby; it’s a lifestyle. The same applies to trading. You can’t be a passive trader and let fate take over. Traders have to always be on the watch for new opportunities and exit points. Joining a community of traders will help you stay updated with latest opportunities and stock market news.
The rule of the game is to hang on and not give up till you come out successful. The stock market can be pretty volatile at times; the ride could be quite tough. It’s important to know when to let go and when to hold on to your stocks. Even if you do have a fall, climb back on to your board and enjoy the ride.
Research New Terrains
Avid surfers are always on the lookout for new terrains and surf conditions. They research the best surf spots in a place before deciding where to surf. Traders too have to research extensively before they buy stocks. This involves being au courant with latest stock market news and keeping a watch on stock charts. This will be easy if you have an online stock trading portal.
The Apparatus Matters
Just as you’d need good gear for surfing, you’ll need a good trading platform to trade with ease. Using an Electronic Communication Network is important to do away with the hassles of human mistakes that may occur when you have to transact with a broker over the phone. This will enable you to take split of the second decisions.
Follow Your Intuition
While surfing, you’ll have to follow your intuition on which wave to ride and when to get on. The same applies to trading; you have to know when to invest and when to sell your stocks. It’s important to follow your intuition than to blindly follow expert stock picks. This is especially important when you have to sell stocks; you should know the right time to exit in order to make maximum profits and avoid losses.
As a surfer, you wouldn’t surf on somebody else’s wave. This rule applies to trading too. Never trade on borrowed money. Keep a stop loss on your investments to minimize your losses. Now this should be enough for you to be able to surf the markets like a pro.