Stock Trading Experience - Essay Example

Stock Trading Experience & Section Number of Introduction Working in stock market is very complex job; it does not only require money but also high skills and techniques along with the fact that the player must be lucky also. Since there are several factors involved in trading of shares while being in the competitive market, therefore at first the trainees are given mock training sessions, in which they are provided with fake amount of money and they need to buy and sell shares on in the given time and note profit or loss. This activity helps in gaining huge experience about the market fluctuations and also keeps the instinct on the line. The following essay discusses the experience of stock trading. Stock Trading Experience Just few weeks ago, I decided to enter into the stock market and become the professional trader. The motivation and interest was developed to work in the stock market, while I was in my school life because in my school life I was very good at mathematics and statistics and loved to play with numbers. One of the biggest advantages and opportunities were my teachers who supported me a lot to polish my skills and techniques. At one point of time, I was strongly suggested by my statistics teacher to take the advanced computer classes and statistics and mathematics tuitions. The advanced lessons and classes also helped to be positive at all times towards trading in the stock market and when I was in college, I finally decided to start trading (Nassar, 1999). In the initial stages and to gain the professional experience, I spent some time with the professionals who were already in the stock market. The people I worked with were known as the successful entrepreneurs and by looking at their success rate, I became more motivated. But at some point I felt that working in stock market is not an easy task. It requires full concentration and strong analytical skills to understand the current scenarios and predict the future. Also while attending training sessions, I found out that I was still in-competent working for this industry because the stock trading industry is very competitive and there are many players who have spent decades (Puri, 2007). Although my expertise and analytical skills were better than others of same ages, but when it comes to the trading of stock, I found out that my skills and expertise were very restrictive to the theoretical aspects. And in the professional life, there are many big fishes that have more knowledge, experience, expertise and skills than me. But I tried my best to understand all the concepts, techniques, approaches and expertise to ensure that in the future these elements will help me to become the successful stock trader and generate the positive outcomes and results. After spending six months as a trainee stock trader, I then decided to move on and become the individual in the stock trading market. I went to my bank and visited an assistant to lend £100,000. After few days, the requested amount was lent to me by my bank. After couple of days, doing my homework and prepare the entire plan, I approached the stock market to make efficient investments. But sooner I realized that the situation in the stock market is not as I was initially thinking and expecting. Before deciding and availing the investment opportunity, there were many aspects that were found to be very critical and difficult. But after long considerations and detailed homework, I took a step and made an investment of £75,000 and bought the shares of the company whose stock prices were constantly going up. Sooner I bought the shares, the very next day, the prices of the stocks starting decreasing. As I entered into the market as a regular investor therefore I did not had the time to wait for the prices to go up again. But I waited for 3 days and found out that the prices were constantly going down because the current financial position of the company was not strong. On the day 4th I had no other option but to sell the stock at lower prices and made the total loss of £3,000 within a week (Conway & Behle, 2003). As it was my first ever transaction and I made the loss of 3K. This de-motivated me a lot but as it was my first every experience therefore I decided to make another investment. I made another plan and covered all the aspects which I found to missing in the first plan. This time I chose the company that was already financially strong but the growth of the stock prices were very low. I consulted my ex-boss and he also recommended me to buy the stocks of that company. But at other end, he also suggested to look and analyse all the aspects before buying the shares, so I did it again (Trader & Jerold, 2001). After few days, I made an investment of £100.000 in stocks and found out that the prices of the stocks were constantly growing but at slow rate. I waited for a week to ensure that when I sell the stock, the profit could cover my previous loss. But in the meanwhile, the stock prices starting reducing and within one day, the stock prices of the company reduced by almost 8%. Again I was in the same situation and this time I lost the total of £8,000. I was in shock at that time and finally decided that this market is not for me. Although I was assuming that my skills and short experience would help me to become the successful stock trader but this was not the case. Conclusion Initially I was positive and confident that the skills, expertise and short experience would help me to produce the positive outcomes. But sooner I found out that working in stock trading market is not a piece of cake. There are many big fishes and giants that are operating and their strategies, approaches and techniques are very strong and efficient. And for individual like me, it is almost impossible to sustain in the market for long run. References: Conway M R & Behle A N, 2003, Professional Stock Trading: System Design and Automation, Acme Trader LLC, USA Nassar D S, 1999, How to Get Started in Electronic Day Trading, Mc Graw Hill, USA Puri P, 2007, Stock Trading Riches, Parveen Puri, India Trader X & Jerold R, 2001, Technical Trading Online, John Wiley & Sons, NY Read More