The Stock Trader's Mindset (2nd Part)

Every genuine stock trader I have encountered soit will be difficult to do so.
far in my almost ten years of stock trading and- HE CONSISTENTLY LOOKS FOR OPPORTUNITIES
analyzing of stocks all have one commonOF HOT STOCKS TO INVEST IN
denominator; they all believe that everything isThe capital market is a beehive of investment
possible in the capital market.opportunities for all investors to make fabulous
The mindset of a stock trader is a comprehensivereturns. These opportunities come in different shape
description of the mindset, thought pattern, beliefs,and sizes; also they come in different colorations, but
heart beat, and approach to stock investments. Theit is the seasoned stock trader that is able to grasp
traditional stocks investor is averse to taking risk,them because he consistently looks out for them.
plays safe, takes his time, is not knowledgeable ofThe stock trader knows the addresses of where to
the undercurrents of equity investments, he islocate these openings, He goes to investment
grossly ignorant of the dos and don'ts of stockscolumns in daily newspapers, in investment
investment, he is a passive player in the very activenewspapers, stock investment programs in Radio and
terrain of the capital market. No wonder they makeTelevision, at seminar venues and stock investment
just 10% of the over 12 trillion naira that exchangewebsites.
hands daily in the capital market and they constitute- CONSISTENTLY EDUCATES HIMSELF.
about 90% of investors that lay claim to owningEquity investment education is paramount to the
shares of companies.stock trader, He knows acquiring stock trading
Stock traders smile to the bank everyday with aboutunderstanding is non negotiable, he knows the
90% of the over 12 trillion naira that actively isknowledge of yesterday at best is good enough for
changing hands in the capital market, they make justtoday but certainly not for tomorrow.
10% of investors in the Nigerian Stocks Exchange.You'll always find him at seminar grounds both paid
The stock trader as the name implies buys and sellsand free, most stock traders do subscribe to top
stocks; the emphasis is on the word "TRADE" therestocks newspapers, they are on the list of first-class
is a constant exchange of stocks for money, it is hisstock investment newsletters on the internet like.
trade-mark.- HE IS ACTIVELY INVOLVED IN STOCK TRADING
- HE IS INTERESTED IN HIGH LIQUIDITY STOCKSStocks' trading is a full-time vocation, so important
If you take a close look at the daily, weekly andthat it cannot be left completely in the hands of a
monthly trading, you'll observe that it is the sectorstock broker, which in my considered and humble
leaders that lead in volume of trade, they are theopinion can be detrimental to your investment health.
ones that command more patronage, their daily tradeTherefore, by the foregoing, the stocks trader is
volumes is in millions. Now, this is very important toactively engaged in trading, it his passion, he derives
the stock trader for the sake of effective anda thrill from trading in hot stocks that sees him
unhindered trading.growing his portfolio to enviable heights.
Let me describe how this mindset works. High liquidityConclusive, it pays to cultivate the mindset of a
means high trade volume; stock tradersstock trader. All over the world, the best performers
Focuses on high volume stocks, therefore, he knowsin equity investment have been known to be stock
it is dangerous to buy into a company that does lowtraders.
trading volume, why? because when he wants to sell,Watch out for other incisive and impact articles.