The stock market is huge. People make and lose millions every day. The stock market is great for some, and devastating for others. The question is, \”How do I become one of those for whom it is great?\” and the answer is: good fundamentals and diversity.
Are you ready to make money? Are you prepared to lose some too? Before you can begin you must know. Are you prepared to invest enough that if you are successful it is truly a windfall? Are you financially prepared that if it is not you will be okay too? It is recommended that you only invest about 10-15% of your savings generally.
Before you spend 1 cent though, you should know the fundamentals of stock trading. If you are new to this, you may attend \”stock trading courses\”. These will certainly provide a variety of perspectives and knowledge. Once you have picked up the basics, go for it.
Here’s the most fundamental concept of all: learn all you can about what you are investing in. Fundamental analysis can be conducted from widely available information. Be sure to get things like: how long they’ve been around, who’s in charge, security filings, research and development and future plans. If it still looks good, consider it for a long term investment.
\”Is this really for me?\” If you have an analytical mind and are interested in following the trends day to day and over time, the stock market is for you! You must throughly understand the nature of the market in order to maximize your potential gains.
What are the basics? If you’ve held a stock and are happy with the profits of cashing out, sell it. If the Stock is low, but has long-term potential, buy it. If the whole market is low or crashes, and you can afford to do so, buy! Money is made buying low and selling high.
Can you wait until your stock goes up at least 15%? Are you prepared for uncertainty? Are you prepared to weather a storm, should the market fluctuate?
It takes a strong stomach to get involved in stock trading. People who do all the right research can make lots of money. The market is never a sure thing though. When the stock dips, are you prepared to do what it takes to keep making money? Good luck.