Any potential investor must first decide how he intends to generate income. When it comes to trading on the market, you need to choose between two options: self-trading or trust management. In order for the decision to be correct, it is necessary to carefully study the pros and cons of both directions. Also, one should take into account the peculiarities of one’s own psychology and some other factors.
Today I want to talk about the advantages and disadvantages of independent trading. By the way, despite the growing popularity of trust management, it is still often used by investors. And there are reasons for that. So, why is self-trading the preferred way of earning?
Benefits of independent trading
The following factors can be referred to them.
- I don’t know how you do it, but I like to make any decisions for myself, including in trading. In my opinion, my own analysis and assessment of the market situation is more reliable. The trading decisions made by a trader, to whom the investor trusts his funds, are not always clear. And that leads to emotional tension.
- Own responsibility for decisions on opening trading positions can also be attributed to the advantages. Of course, it’s easier when you have someone to point your finger at in case of a trade failure. But it will not improve the situation with the trading account in any way. Analysis of your own mistakes allows you to significantly improve the quality of trading, and therefore the size of earnings.
- Self-commerce is an opportunity to improve your professional skills. And that’s the key to confidence and peace of mind. A man like that knows he can always make money.
- And finally, independent trading allows you to experiment with the aim of creating more efficient trading systems.
Lack of independent trading
I’d point out two main drawbacks.
- Self-trading requires a sufficiently deep knowledge of the market, technical analysis methods, principles of creating trading strategies and reducing risks.
- It will take a long time to trade independently. And if a person is engaged in some other type of activity, the earnings in the market can become problematic for him.
Powerful tradingcan be a source of material well-being. But to do so, much effort must be made to improve financial literacy and create a profitable trading system. If there’s no such desire, there’s only one way out: trust your money to an outsider and hope he disposes of it in the best possible way.Fyodorov’s Inga27.08.2018