How I Started Understanding The Stock Market
When I started trading stocks, I didn’t know what I was doing to a certain extent, but I kept on learning about the stock market and I ‘m understanding the stock market better each day. You don’t just study until you know it all because 1) it’s impossible to know everything since each day is different and 2) You can’t really learn about the markets unless you are in the markets.
I love the stock market and enjoy what I do for a living now. It’s taken some time for me to feel confident enough to do it as a full time job, and now that I have built-up a good looking portfolio and I don’t plan on getting a job where I work for someone else again.
When I was in my 20′s I used to listen to the headlines to get a feel for what was going on. Yes, I missed out on the boom in the 90′s, but that’s okay because there will always be another one. Once I had my finances in order I started to put about 5% of my salary toward an IRA (besides what I was putting in my 401K plan). I traded what the market refers to as penny stocks (stocks valued at $5 a share or less), which was pretty good since if I did my homework I could make 50% gain on the money I invested in a matter of a few days or sometimes in one day because of some great news that came out on the company. Don’t get me wrong, but there were also days that I would lose that much just as quick because of some bad news or mis-information.
You need to understand the stock market as well as how each sector affects each other. Oil and the world economy is something to take into consideration if you really want to be the best trader that you can be. You can’t possibly know everything about the markets, but the more you know the better off you’ll be. Take your time and learn the basics before you put your money on the line, but like I said don’t wait until you know it all. You to can understand the stock market where you can make great gains, but it doesn’t happen over night.
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Filed Under Getting Started With The Stock Market, How To Read The Stock Market, Learning About The Stock Market, Stock Market For Beginners, Stock Market Strategies, Stock Market Tips, Trading Stocks, Understanding The Stock Market | Leave a Comment
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