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Personal Understanding of Stock Market

Hot 249 views. 2022-1-11 12:05

Stock market is not like a casino, that you go there to find out whether you have luck on your side. Although some people do treat the stock market like the casino.

 

Let’s put luck aside, you actually have to have knowledge to be able to gain money from the stock market. There are so many things we require to learn to make a living with it. You don’t just buy any stock out there; you must do your homework first. You not only require to learn the targeted company’s history, fundamental, spending, earning, data, reports, events, incidents, accidents, but also the whole economy of the market. These are all the factors that can affect the stocks performance.

 

There are usually two types of people in the stock market, day traders and investors. Day traders are those who execute four or more trades a day or within 5 business days to maximized their profits from short term price movements. To do that they require to learn the events of the day, and they must know the charts and patterns of the stocks very well to earn money. Investors are different, they profit from compound interests and dividends, but not short-term price movement like the day traders. Once they have done their homework about the company, they would keep the stock for a long time, as long as the company’s fundamental hasn’t been changed. I know a few people have been keeping their stocks for decades now, because of the dividends the company gives out every quarter. Investors don’t log in to see their stocks all the time, and freak out when the prices dropped, they don’t care for the fluctuations, because it would not affect their dividends.

 

Of course, you don’t just jump in the stock market whenever you please, because you will get burn. Why? You always learn the statistics before you jump in, that way you wouldn’t buy it too high, otherwise you would lose money instantly. Sometimes it worth the wait for the prices to dip and you can’t be too impulsive. It is a game that requires patience and knowledge.

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Post comment Comment (5 replies)

Reply Dempsey 2022-1-11 17:46
It is the first time I learn some knowledge about stocks, and I think that my father must be an investor because he had kept to one stock for several years not selling it.
Reply teadrinking 2022-1-12 09:55
We are not supposed to gamble in that market otherwise it hardly profits as we want. Day traders or the short-term speculation and the long-term investors are all up to our logicality and recognition on the understanding to the value of stocks we want to join in. Anyway, investment is deeply personal, the best methods for one's strategy is not suitable for another person. But learning to be reasonable, it helps us invest money into that market efficiently with patience. We are on the way to study all the time.
Reply teadrinking 2022-1-12 09:58
Dempsey: It is the first time I learn some knowledge about stocks, and I think that my father must be an investor because he had kept to one stock for several  ...
Never too old to learn.
Reply SmilingAngel 2022-1-12 11:29
Dempsey: It is the first time I learn some knowledge about stocks, and I think that my father must be an investor because he had kept to one stock for several  ...
I used to be both
Reply SmilingAngel 2022-1-12 11:31
teadrinking: We are not supposed to gamble in that market otherwise it hardly profits as we want. Day traders or the short-term speculation and the long-term inves ...
Learning is essential for our brain.

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