Are you thinking of getting started in trading and investing?  Before you even thinking about risking your hard-earned money, well before you look at a chart or think about strategy, it is critical to understand what it really takes to become a consistently profitable trader/investor. In my opinion, if one does not prepare themselves properly, they really are decreasing their odds for success well before they even click a buy or sell button. It is critical for every new trader or self – directed investor to fully understand the disciplines required and, more importantly, why they are required, right at the very start. In this piece, I am going to share the four key areas to focus on which will not only help you determine if self – directed trading/investing is right for you, but also hopefully help you to achieve your goals.

Learn the Right Way

Education is where the journey starts and, unfortunately for many, this is where it ends as well. Most people say education is the answer when it comes to successful trading and investing in the financial markets, I completely disagree.

Education is really why most people lose money and fail, because most financial education is either very flawed or intentionally misleading. Proper education is the answer, and without it you are likely to quickly find yourself time and time again on the wrong side of the market with your hard-earned money being transferred into someone else's account.

Many new traders forget that trading is a skill which needs to be honed and developed. It is a venture that requires superior skill and understanding as it is competition at its finest. Each and every time you push the button to place a trade, there is someone on the other side of that trade trying to take your money. The trader who is more informed and properly educated is typically going to come out ahead.

In short, most trading and investing education leads to buying high and selling low. The proper way to do it is the opposite, buy low and sell high. I know your thinking, who would buy high and sell low? However, that's what most people end up doing and it's the single biggest reason most traders lose money and most investors never come close to achieving their financial goals.