The Stock Market.
Everyone has heard of it at some point, but many of us, including myself, really know nothing about it. Depending on who you talk to, it can be either an unnecessary risk or the key to financial success. I’ve decided that I want to explore the stock market, see what I can learn, and what it has to offer. For those of us who are new to this area, it can be very overwhelming. There are so many things to look at and research before dropping money into the game.
Here is what I have learned so far:
Do LOTS of research.
You will be putting your hard earned cash out into the market with the hopes that it will grow for you. Throwing your money at the first stock you see is neither smart or advisable. You can either hire an advisor to help you through the process or you can choose to do it yourself. If you choose to go it alone, make sure to find all the information you can on your chosen company. On your trading platform, you should be able to find a “research center” that displays the company financials, performance charts and any news pertaining to them. Knowledge is power when it comes to the stock market. Arming yourself with as much data about the company as you can find will help you make an informed decision.
Figure out what your investment goals are.
Are you looking to make a quick buck, or increase your net worth? While both are valid goals, they require very different strategies. Those trading for a quick buck usually operate from a “Buy Low, Sell High” mindset and only hold on to stocks for a short amount of time. Conversely, those looking to increase their net worth tend to look for stocks they can hold on to for years.
Don’t get emotionally attached to any one stock or company.
Because the stock market can be volatile depending on the sector you’re in, there can be many ups and downs. You have to be prepared for the days you will see more red on your ticker than green. Do follow your gut though. If all the research you have done leads you to believe that your chosen stock is a good one (or not), listen to what your gut says. In the long run, you have to feel good about your choice or it’s not worth putting money into it. Getting emotionally attached can lead you to hold onto a stock much longer than you should have. Then you may run the risk of losing a lot of money. Research them, believe in them, but keep your heart and emotions out of it. The stock market is no place for “feelings”.
Seeing Red is not always a bad thing.
A lot of people freak out when they see red. This means your stock price is falling and you are potentially losing money. But, on these red days, it can be a great opportunity to buy more shares in that stock. Then, when the ticker is green and the price is rising, you have increased your earning power.
Join groups on Facebook.
There is a huge community of people on facebook who are investing in the stock market. Some are newbs like you and me, and some are seasoned veterans. Take the opportunity to pick people’s brains and ask questions. Everyone was a newbie at one point and a lot of the members of the groups are super helpful in helping you understand what everything is about.
This list barely scratches the surface of what there is to know about the stock market. As I learn more, I will definitely share more! Join me as I Learn to Earn in the Stock Market! **Please note that I am in no way shape or form trying to advise anyone on how they should invest in the stock market. That is best left to the professionals. If you want more in-depth info the only real suggestion I have is for you to find a financial planner or someone legally able to give you all the support and advice you need. **