Tip # 1 – Ride the Economic Waves with COURAGE…DON’T FEAR the obstacles
The ups and downs of the stock market are part of a natural cycle of balance, but, for the beginner, they may seem like a lot of zig zagging mountains standing in front of an impenetrable wall. Watching a dramatic stock adviser like CNBC’s Jim Cramer, sharing his stock picks, while pushing his mad machine buttons that sound off horns and whistles, and diligently setting up an on-line trading account that puts your money into a “sweep account,” can find you wondering if it is really worth learning about the much talked about, world of investing.
Knowing the tides to come can challenge the best of investors, the gear of preparation can make the overall peaks and valleys, provide a long term, profitable purpose. The fear of the unknown can be an intimidating path, but the perseverance of courage makes the goal obtainable. The obstacles along the path can be sparks to ignite us to desire moving on with what we have learned, to use it for future gain.
Tip # 2 – Research the possibilities
It can be a so called “mad” journey, but also a fun one, especially if you take it nice and easy from the start. Of course, as with any new learning adventure, you must do the research that will help you begin to think like a pro sooner than you might expect. You mustn’t let yourself be fooled though, stock trading may look easier than it really is. However, with some cautious practice, you can become confident with some basic trading opportunities.
Research is necessary to know trading terminology. Recent year copyright library books offer information on day trading, and swing trading. Different types of investment instruments can be explored like stocks, bonds, and treasury bills. Long term investment is recommended in most of these sources. This type of research can help a person decide if they want to leave there future financial retirement building in the hands of one of many mutual funds, or if they want to learn enough for themselves, to perhaps keep more of the possible gains from investing in their pocket instead of a fund managers.
The stock market is all about taking risks, but the more you learn, the more your risks can be minimized. Diversifying, which is investing in different kinds of stocks, like growth stocks, small, mid and large caps, or stocks, bonds, bills, etc. can also be wise in minimizing the risks. Internet resources abound for investing and trading education. A good start would be www.nyse.com.
Tip # 3 – Resolve to gain wisdom
Above all, be slow, be cautious, do the research, perhaps some paper trading(logging or keeping a journal of your trades on paper before you actually execute them in the markets). Also, be prepared to be “bearish” or “bullish,” as they say in the trading world, realizing you may win, you may lose…but you can always have fun, if you don’t spend monthly budget money; instead, use your “mad money” to invest.
For the beginner, as well as for the more experienced, patience, learning and remembering are invaluable. As one’s experience level changes, it will always be wise to be reminded of the beginning primer principles, thus, keeping the focus on the basics. Simplicity is often an overlooked tool in a world full of technology, yet, it is a great teacher.
You could become another Warren Buffet, but even if you don’t, you can open yourself up to a new learning adventure, and have something of long lasting impact to share with your children and the generations beyond.