When I started to get in touch with finance and stock markets I was also in touch with different finance products. I tried to buy stocks, sell them on higher stock price with profit. I tried to trade forex and options. I was frustrated because I lost some of my capital. I didn’t have the knowledge to trade on profitable basis. If you are trading forex you’ll also be in touch with trading on margin and other functions – I would call it “freaky” stuff for no professional traders. Its freaky because you are trading with more capital as you’ll have invested. Currently I’m using the dividend growth strategy as I’m sure its the right one to become financially independent. All the money I’ll save will be added to my portfolio to invest in great companies which are paying dividend and will grow them from year to year.
I just read an article about an german guy losing 250k € in few minutes. I asked myself how is it possible? What did he wrong? In this german article you can read that this guy was not investing, he was trading. He was trading in forex and lost 250k €.