0Over the past 12+ years, I've seen many traders who made good money at one point but were unable to hold onto it. Some people have the mindset of "No risk, no gain," and end up trying to take revenge on the market after losses. However, the stock market is a professional field—there’s no such thing as gambling, and no strategy will make you an overnight millionaire or billionaire. It’s a cyclical process that requires good psychology and risk management. If you know how to manage your risk and emotions, the stock market can offer steady returns. But you also need to understand market cycles and know when to enter and exit.
I believe that a single strategy can give you great returns over an entire cycle, as long as you believe in your research. It's essential to backtest your strategy and start small with minimal risk to test it out.
Before entering the market, make sure to do thorough research, covering both technical and fundamental analysis. This preparation will help you have a smoother journey in the market.
Now, I have a question for you: How much return do you expect from the market as a full-time or part-time trader?
I believe the answer to this question can give you an idea of what type of trader you are. Many retail traders don’t understand the potential returns of the stock market, and they often don't even know the average CAGR that professionals earn. Understanding this question can simplify your stock market journey and help you realize why only 5% of people succeed in the market.
