Stock Market Basics
Your Roadmap to Financial Freedom Starts Here
Would you trust a doctor who never went to medical school? Would you want to be represented by a lawyer who never went to law school?
Its amazing how many traders think all they need to do to make money trading stocks is to open up a brokerage account. No need to learn anything.
Its also why the vast majority of them fail.
Since you're reading this, you're on your way to avoiding one of the first pitfalls of new traders. You're already on your way.
There are 4 levels to stock market basics that you should become very familiar with. Remember, you are not only buying a part of a publicly traded company, but you are also going against professional traders who's job it is to sell you shares at a higher price, and buy them back at a lower price.
Let's have a look at these 4 levels:
If you want to be a successful investor or trader, you need to treat it like a profession. Its a profession that is exciting, its liberating and its one that can make you a lot of money.
Of course, if done incorrectly, you will lose a lot of money.
If you want to become a successful trader, you need to take a few minutes and learn some trading basics. Just you you wouldn't trust a doctor who didn't go to school, you shouldn't trust yourself until you understand fully how to make money in the markets.
That's where we come in to help. We'll teach you what you need to know in order to become a successful investor. The rest is up to you.
There are plenty of ways to invest in the equity markets and plenty of ways to lose money as a result. The biggest mistake that investors make is to trade an investment product without knowing the risks involved, and without considering what their own risk tolerance is.
If you are an experienced investor, you may want to consider increasing your risk exposure by looking at trading futures, or trading options. Its important to remember that although there is plenty of money to be made, you can also lose a lot of money. The smart investor will only expose a small percentage of his overall portfolio to such risks.
So before you jump into these investment products, you should first sit down with a financial planner. Too many people look at investing as their ticket out of financial challenges. While an argument can be made for that, the truth of the matter is that people take more risk than they should, all in the hopes of making a quick buck.
A financial planner can help you ensure that your fiscal house is in order, talk to you about investment planning, investing in mutual funds, bonds, exchange traded funds and retirement planning tips. While stock market investing can help you achieve these goals, you need to start from square one