- Smart investing is like a muscle. Don’t attempt to lift more than what you’ve trained for.
- Prepare to lose almost as much as you gain. You only have to gain a little more than what you lose in the market.
- Starting a micro-business gives you more freedom to re-invest your market earnings.
Nana Yaw Ampofo
“Smart Investing is not a skill, it’s muscle memory. You could read all the books written by gurus that talk about investing and you will still suck at it until you develop and train your reflexes to the market.
You train by getting started, even if it’s a few extra dollars. You will have your ups and downs. That’s why, in the beginning, you need to invest small amounts because if your goal is to live off your investments within a few years then you need to learn how to track market trends and not jump because of good or bad news cycles.”
“I’m a day trader of currency, and yes, interesting news can turn the market upside down TEMPORARILY but what newcomers fail to realize is that you can ride trends in micro-movements that may happen in less than 3 minutes. Fortunes have been made and lost in that small window of time.”
I myself made and lost tens of thousands of dollars in that short amount of time but you have to step back and look at your trading as a whole. Losing half of your $200 investment in a few minutes can be painful but losing $20k in that amount of time is crushing.”
Who’s Afraid Of The Big Bad Trend!
As a seasoned trader of British Pounds, Euro, and other currencies with large movements in the market, where I can lose and gain 20k is part of the job. Once you build enough muscle memory that triggers your recovery reflex, your emotional reaction to market waves becomes trivial.
What happens in the case of a bad market move where you can’t recover? – I’m still working on inoculating myself from going all in. One thing I have is continuous income from my moving helper business.
The steady income allows me to make market moves others can’t because they need to pull income from their trading instead of positioning themselves for a trending move.
“I’ve created a business that gives me cash flow outside of my currency trading. I make bold moves, so, the last thing I need to worry about is cash flow.
“It doesn’t matter if you are trading stocks, currency or cryptocurrency, If you have to live off your investments, you invest differently. When your back is against the wall, you invest in desperation. Creating continuous cash flow gives you the freedom to invest wisely and not make desperate trades.”
“You can have a number of micro-businesses that bring in just $500 a month. They can seed your investments or keep the lights on.”
You can read more about Nana Yaw Ampofo in the Investment Issue of Millennial Entrepreneur