One of the questions that I receive all the
time is: Should I invest in stocks
or should I trade
at all? Here are my top
3 reasons why I
personally trade. So,
reason number 3 is that
these days it is easier
than ever to trade.
Whether it's stocks
or options,
or whatever you want to trade,
and here's why.
You have powerful charting software that
helps you to make the best decision.
These days brokerage commissions
are lower than ever because
if you think about it,
right now you can trade for as little as
$5, sometimes even a dollar,
or depending on what broker
you use. You might not pay any
commissions at all.
For example,
Robin Hood is one of the brokers where you don't
pay any commissions at all.
Now there is a downside to this,
but we'll talk about this in another video.
I remember back in the days when I
started trading,
this was in the late 90's,
early 2000s.
When I had to place a trade,
I had to call a broker,
place the trade
over the phone.
Then the broker called the order
desk at the exchange.
There, they printed out an order ticket,
gave it to a runner.
He ran to a person in the pit
where the trade was going
on. When he got filled,
at some point,
the trader in the pit gave
the runner the filled order ticket.
The runner ran back to the order desk
at the exchange. [LAUGHS]
Then they called my broker.
My broker called me
and this is how I knew whether I got a fill
or not.
So, as you can imagine,
it took about
30-45 minutes sometimes.
Minutes!
Not seconds.
Because there were so many people involved,
it was really expensive.
Again, these days, commissions are lower than
ever. Back in the days I paid $40,
$50, $60 in
commissions.
And right now it is so much easier.
So, again, we're going to talk about the top
3 reasons why I personally like to trade
and reason number 3,
these days it is easier
than ever. Not only to get started,
but also to trade.
It's a very level playing field.
Reason number 2,
and this is perfect for me because
I am an introvert.
So, when trading,
you don't have any employees.
When trading you don't have a boss.
When trading you don't have
deadlines.
You don't have projects that you need to work.You
don't have an overflowing
inbox. But when trading,
it's just
me and the computer.
And I'm the one responsible
to make the decisions.
I like that a lot.
There's nobody else to blame.
That's the downside.
I mean, if I'm not successful
with trading, this would be on me,
right? But when I am successful
in trading, this is also because
of me.
Now here's the number 1 reason why I like
to trade.
Because if you think about it,
how can you make a lot
of money? For sure not working a job.
I mean, I tried this. I had
a job. I 'worked hard'
and I worked 50,
60, 70 hours,
and yes, I made six figures,
but this is not
how you become a millionaire.
At least that's what I've figured out.
Maybe you're way smarter.
For me,
it didn't work.
I worked hard.
I got burned out.
So, I looked into other ways to make a lot of money.
Here are the 3 ways that I
found that you can
make a lot of money,
that you can become a multimillionaire.
Number 1,
of course,
I believe it is trading.
Number 2, real estate.
Number 3,
running a business.
If you think about these 3...
Now, of course, there's other ways.
You can inherit money.
You can become a famous sports
star or maybe you can
take a picture of your butt
and break the Internet.
But trust me,
I'm not as cute as Kim Kardashian
so it doesn't work for me.
So, anyhow, if you think about it,
the 3 ways to
make millions: Trading,
real estate,
and running a business.
Now, running a business...
I don't know about you.
As you know, I do have a business: Rockwell
Trading.
And there's a lot of moving parts.
I mean, this is where you have to do marketing
and then be on Facebook
and do advertising.
And then there's a team,
and then there's customer service,
and there's a lot of things going
on when running a business.
It's almost like having too many variables
there.
So, this why I personally
like to stick to trading because when it comes
to trading, there's only 3 things that
you need to know. The first is what do you trade.
What stock do you trade
or what option do you trade.
Number 2 is when to enter
and number 3 is when to exit,
whether you exit
with a loss
or with a profit.
About the 3 ways to make a lot
of money... I mean,
running a business... trust me,
that is not my favorite.
Now investing in real estate,
think about this: I do
have a few apartment complexes
and I did have quite a
few houses here in Austin.
I believe I had 12
or 13 single family homes
and even when you have apartments,
I mean, you constantly have something
going on in real estate.
You have busted water heaters.
You have AC's that need replacement.
You have tenants that might trash
your property. Tenants that do not pay that
you have to evict.
So, there is also a lot
of things and again,
we talked about it in step
number 2
or reason number 2 is I'm
an introvert,
so I don't like
really talking to strangers.
I like talking to you because I feel
that somehow, we are somewhat family
or friends, right?
And I really don't like
conflict, t like going to court
and evicting people...
It's not my thing.
And you see when trading,
you don't have this. So,
out of the 3 ways
how you could possibly make a lot of money,
running a business, real estate,
or trading... trading is my
personal favorite because when trading,
you're not dependent on anybody else.
It's just me right.
I mean, I'm responsible for my success
and failure. The beautiful thing is I get immediate
feedback. In your day trading,
you see within minutes whether you're right
or wrong. And when you're trading
stocks and options, you see within a few days
whether you're right or wrong
and then you can correct it.
So, when running a business,
it might take weeks,
months, even years before you know
whether you got it right
and the same with real estate.
Until a real estate investment
pays off, it can be many
years until you can finally
cash out. And when trading,
it's pretty quick.
When day trading,
it's within a few minutes
and when your swing trading,
it might be within...
My preferred way to swing trade is that
I'm holding a stock
or an auction for 5 to 20
days.
So, should you invest in stocks?
Well,
I gave you my 3 reasons
and again 3 reasons: Number
3, it is easier than
ever because commissions are so low
and you have powerful,
powerful tools these days.
The tool that I use,
as you know, is the Power X Analyzer that
literally within minutes
tells me,
analyzes 15,000
stocks and tells me the best 2
to 8 stocks to invest in right
now.
So, anyhow.
Then reason number 2 is for me,
as an introvert,
I don't need to talk to other people.
It's just me
and my computer
and I can trade wherever I
want, and whenever I want,
and I like that freedom.
And reason number 1 is if
you really want to make a lot of money,
I believe that you need to either
run a business, which I
think is incredibly challenging
and difficult
or invest in real estate,
which I also, based on my personal experience,
is not as easy as other people make
it sound. Or trade!
I mean, for sure it's not having a job
and this is what I figured out many years
ago when I left my job
at IBM.
As you know, I was working for IBM.
I was a director at IBM.
One of the youngest directors in Germany,
but I got burnout
and I don't know about you,
but that's what happened to me.
I was working 50,
60, 70 hours a week
and I thought,
"that's not it",
because especially looking at my
savings account
or my IRA, there wasn't much
in there. When I left
my job at IBM to become
a trader, this is when my life turned
around. By the way,
if you're new to this,
make sure that you subscribe
or leave a comment.
What is your favorite reason?
Why do you want to trade?
Or if you are trading,
why are you trading?
Let me know and right now,
also there should somewhere be something popping
up by my face.
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for you. All right.
Hope that helps.
And I'll talk to you soon.
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