How and Where to Begin?

Posted on Nov 19 2014 - 3:26am by Sharpe Trade

Payout Ratios.

NYSE Arca/Ex.

New Zealand’s Current Account.

200 day moving averages, simple and adjusted weighting.

Forex markets

The BATS exchange.

It is no secret that newcomer’s to the Capital Markets who wish to direct their own accounts, investments and trades, are immediately introduced to what seems to be a bewildering array of terms and concepts that sound like something out of a Star Trek episode …

Captain, the ARCA/EX reactor is hitting a maximum current account of 2.40!  Any higher and we’ll have to dump our adjusted weighting into BATS!!!

My ‘advice’, if you want to call it that, to anyone that is new is to not allow the terminology to over-whelm you.

But the question remains ..

Where does the newcomer begin?

I personally receive this question more than many other.  I have received this question forHow to Begin Investing the eight years that I have had a public presence in the arena of investing and trading.  When looking at the journey and path of an investor and trader …

Where does the newcomer begin?

Well, the very first place to begin, many of us believe, is to have worked through Dave Ramsey’s Babysteps.

Didn’t expect that did ya?  Were you expecting an outline of a discussion regarding valuations perhaps?

But seriously, Dave Ramsey’s Babysteps.  No, we have no business referral or affiliation with Financial Peace University.  This is just a personal belief that it is best place for a new, descretionary, self-directed retail trader to begin. Those are the sort of principles by which they should begin their journey. And there are a number of reasons why we beleive this to be so.

First of all, just as a personal rule, we hate personal consumer debt, and all of the entanglements that ensues because of it.  We wholeheartedly support much of what Dave has to say in that regard.  As a friend of mine likes to say:  “Getting out of debt is the same as making money“. Or with someone else, as we were having this discussion  If they want a 20% return on their money, probably the best thing to do would be to pay off their credit cards.  Boom.  20% right there.

A second reason that we believe this is a truly wise place to ‘begin’ if you are just starting out, namely … you can begin doing this, right now.  Today.  This second.

It requires no specialized knowledge.  No studying.  No books.  No purchases of a course.  Simply read those “Baby Steps” of Dave, or if you prefer to watch a video of the “Baby Steps”, you can do that too. 

A third and final reason this is a good place to begin?  Going through those Baby Steps requires a definite attack on behavior.  Finance is really, about behavior. As the years pass, I find this to be more true.  No, not just your individual finances and family balance sheet, but as we will discuss in the future here at Sharpe Trade, investing and trading the capital markets as well.  After all, that’s what I am at heart.  An investor.  That’s what I love.  Trading.

And trading profitably requires patience.

Trading profitably requires self-control.

Trading profitably requires persistence.

Trading profitably is about rigorous psychological discipline.

Trading profitably requires persistance and dogged determination.

So my question would be, would there be a better place to begin than the Baby Steps, which are all about behavior and psychology as they relate to finance?

Stay tuned, because we are going to develop a series here at Sharpe Trade, that explores the topic of “How to Begin“.

The “How to Begin” playlist on YouTube can be found at this link.

(The next entry in this series can be found here ….)

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