I will be doing a series of posts titled “a step towards success” that will come out at various times over the course of a few months or longer – I will post one every time I come up with an appropriate theme.
Here are a couple small pieces I have already wrote. Enjoy.
What it Takes to Be Successful in the Market
– Hard Work
There is no doubt that the market is one of the most complicated machines, ever. There is also no doubt that the stock market can provide immense opportunity. However, to become successful in the stock market you must have three specific characteristics – Patience, Perseverance, and Hard Work. When beginning, many want to jump right into things, expect to be profitable, and for it to be easy. I have been guilty of this myself. You need to be patient, nothing comes easy, being patient allows you to learn for a long time, and eventually allow you to be a profitable stock market participant. Having Perseverance is one of the most important traits a trader should have. As we already determined, nothing worthwhile comes easily. You will have difficult times within your career. An example of this is a losing streak, or the frustration of not following your rules, both of which everyone, me included has dealt with. The person who is able to persevere through these difficult times will always be the more successful one. Hard Work is something young people often struggle with and some adults as well. But, to be successful you need to put in the work, day after day to learn how to participate in this type of business. I often have given up Friday nights, and much of my free time to study the markets, and for the past 6 or so months I have spent an average of 3 hours a day studying them. Take the time, and do it right. When you combine all these three characteristics into your personality you will become successful at not only the stock market, but whatever you choose to peruse.
What are the Tools available to get started With the Markets –
– Countless Educational Websites
We live a world of immense information. The internet has revolutionized how people connect, and how you can learn. Once you decide you want to educate yourself and take a step toward financial literacy you are able to really explore and discover the countless websites that will help you. If you were to want to start studying the stock market there are so many websites out there that are helpful. The number one website I would recommend from personal experience is StockTwits.com. StockTwits allows you to connect with fellow traders and explore the stock market real time with fellow participants. You are able to develop friendships on there, and definitely learn a lot. StockCharts.com is another website I would recommend. StockCharts.com has a section within their website that is titled “Chart School”. Chart school is a collection of all the basics when it comes to technical analysis, which is another word for the study of a securities’ price. Once you have mastered the basics, you can then venture onto some of the more advanced blogs, some of these include; BenCBanks.com, T3Live.com, and JonBoorman.com. For the most part I have learned all I know from the internet. However, I do have my fair share of books. Having tangible books allows you to refer back to a concept with ease in case you forget something, or would just like to refresh. With the internet at your fingertips, and the books across town there is no excuse for a lack information. It is up to you how you would like to use the information.
How to Pick Stocks to Buy
– Everyone’s different
– Find something that works for you
People often struggle with picking the right stocks to buy. This is because unlike other things in life, there is no black and white method for doing it. There is no “checklist” for picking a stock. If there were, everyone would be very wealthy as it would be very simple. The very basics of stock picking come down to two different methods. Number one, Fundamental or the study of a company’s balance sheets, ratios, and more and the second, Technicals, or the study of behavior and price action of a security. Each of these are used, and one is not necessarily better than the other. No one can tell you what you should use, or how you should use it. Everyone’s method and process is different, and what might work for you, may not for another. At the end of the day, it is up to you to determine which process is best for you, and it is essential you not try to replicate someone else’s. For me, I use strictly technical analysis to determine what securities are worth my time and money. I chose this path because I believe that people are very emotional with their money, and through technical analysis the emotions are shown and I can use this knowledge to my benefit. Just like everyone’s finger print is different, everyone’s approach to the ever complex stock market is different. Go out there are experiment with a few different approaches, it may take some time, definitely some work, but you will know it when you find a process that works for you.