The stock market can be a very dangerous place to put your
money if you don’t know what you are doing so I am going to continue supplement
my information with that of others for the beginning traders because I know a
lot of people who have fallen into many of the traps and have started trading
before they were ready.
I have found a post that gives some insight and more
information.
Click on link below to view:
I encourage everyone to check out this link. I agree with the most of what this author is
stating. I can’t give you enough tips
for investing.
The author clearly lays out many mistakes that many people
make such as
Number 7: “You can’t
tell how expensive a sock is by looking only at its price.” There is a misconception that the price of
the stock reflects how well the company is doing. This is false the stock price isn’t used to
compare stocks there are other factors such as how many share are
outstanding. (Example: Apple vs Google) Apple just did a stock split as did
Google. Apple stock did a 7 to 1 split taking
the stock from $600’s to the 90’s.
Google’s stock split was more complex as they added a new stock with a different
dividend payout but the stock went from 1000’s to $500’s on a 2 to 1
split. The shares of stock that you are
holding would just multiply accordingly.
Number 10: “It’s
smarter to buy and hold good stocks than to engage in rapid-fire trading” A
trader has trouble judging the market or the move of a stock on a day to day
basis. I would suggest that you purchase
stock from healthy companies and hold them for a longer period of time.
Check out the link and let me know if you have any questions
and want me to elaborate on any of them for you.
The Wall Stock Journal
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