My first experience with forex trading was in 2006 and the very sad and challenging 2007. I remember the elation with which we entered daytrading and how after the 4th month we felt like we have figured life out and all was pink and RICH :)))
Little did we know, that we were yet to experience a world crisis leading to a personal crisis in our trading accounts. Although we followed the rules trading with only 10% of our balance, that was not enough to keep our positions open for very long time. Our pink lenses were shattered in pieces in a very short period of time and we decided to revert to traditional ways of earning our money. No, we were not employed to chisel stones by an Egyptian pharaohs but conventional job felt like sweat and tears for a while.
I would say that although money was lost in the process a valuable self knowledge was gained.
Insight #1. Know your weaknesses
Daytrading is not for everyone – my risk tolerance is too high and it would be more beneficial for me to concentrate on building long term portfolio. People with high risk tolerance can be very successful but can fall from very high. High risk tolerance and daytriding are not good for people who have a history of heart and nervous system health issues in their family, which was my case. The adrenalin rush and my cortisol levels are too high to handle such a lifestyle in a healthy way. If I was to continue and the crisis didn’t happen, the consequences would have been bad for my overall quality of life, although very lucrative.
Insight #2. Turn the weakness into strength
High risk tolerance can be of benefit too. There are different ways to fulfil the need for higher risk. One of them is to invest in innovative platforms like p2p lending. The Fintech sector is a relatively new sector. Although many investors have already few years of experience with it under the belt, we haven’t experienced a big hit on it as 2007 was for more traditional investment platforms. So I consider my decision to grow my dough in a fintech manner a good way to quench my high risk thirst. Within the platforms, my portfolios are mid risk and with buy back guaranty. Automatic investment is a must, the daily report is nothing more than reassurance that things are on track – no big drama there.
And the baby step in a new (old) direction.
In my last article I mentioned that I signed a contract with a trading broker, to use their platform to purchase shares. Now for many of you there is nothing of high risk in that.
For me it was a symbolic step – on many levels. One of them – overcoming fear after crashing once, although I never traded stocks, I traded currencies at the past.
I also wanted to buy my first stocks either on 14th of February or 8th of March, as a symbol of love and respect to myself and my financial wellbeing in my future. Did not manage on those two days to purchase my first stocks but I decided that the whole month of March is the month of “women who create history”. Well in my case, I created just a small step in my own history – 18 of March was the day when I bought my first stock shares in my life.
The amount is laughable, but is my own start. According to my calculations, in order to make the minimum fee of 1,5 eur feasible one needs to invest roughly 255 eur. However I was experimenting with different account top up methods (you can see them here), and 10 eurs were gathering dust in my account, without working for me. I figured that if I use them to buy shares, would be way better as the share value would go up eventually. Said and done – I own 6 shares of Bulgarian IT company, who’s focus is Internet of things. I did my happy dance, as it was a step for me on so many levels:
- Overcoming fear of failure
- Leading by example as a woman making an investment decision during the Women’s month
- Choosing a young IT company with innovative thinking, with a concept in coherence with me
All those baby steps in one (all that with the monetary value of an English breakfast 🙂
Happy growing of your dough, dear ones – I managed to sprinkle a bit more yummy ingredients this month!