Reading financial economics books can help you understand the fundamentals of the financial markets and how they work, but it doesn't mean you'll be able to make money. Making money requires more than just knowledge, but also experience, skill, and luck.
Here are some reasons why you can't make money even if you read books on finance and economics:
The knowledge is not comprehensive enough. The financial market is a complex system that involves a lot of knowledge and skills. It is difficult to grasp all the necessary knowledge just by reading a few books.
Lack of practical experience. Financial markets are changing rapidly, and there is a big gap between theoretical knowledge and practical operation. Without practical experience, it is difficult to make the right decisions in the market.
Lack of discipline. Investing requires strict discipline, and once discipline is lost, it is easy to make bad investment decisions.
Poor psychological quality. Investing is a risky activity, and people with poor mental qualities can easily make impulsive decisions in the midst of market volatility.
If you want to make money in the financial markets, in addition to reading financial economics books, you need to pay attention to the following:
Start with the basics. Don't rush to learn complex theories, start with the basics and lay a good foundation.
More practice and less theory. **Constantly summarize experience in practice and improve your investment skills.
Establish strict trading discipline. **Strictly enforce your own trading discipline and do not change easily.
Cultivate good psychological qualities. **Stay calm in the midst of market volatility and not be affected by emotions.
Here are some specific suggestions:
Choose the right investment vehicle. **Different investment vehicles have different characteristics and risks, and choosing the right investment vehicle can increase the probability of investment success.
Do a good job of risk management. Investment risk is unavoidable, and doing a good job of risk management can reduce the risk of investment loss.
Learn to stop losses. Stop loss is one of the most important principles in investment, once the investment is lost, it is necessary to stop the loss in time to avoid the expansion of the loss.
Be patient. Investing is a long-term process, don't expect to get rich overnight, be patient and build wealth.
Hopefully, these suggestions will be helpful to you.