Do you want to begin investing for profits in stocks but have no idea where to start? This quick post can help.
Are you a fundamentalist (think Warren Buffet) or a technical trader (think Japanese candlestick)? It all boils down to what’s your sense of investment. Are you going to invest $1000 or $100,000 and how much time do you intend to spend on reading the market moves to multiply your investment?
Your investment success begins with the simple choice; are you a fundamentalist or are you a technical trader. Your answer will determine nothing in the long run. It is after all the first step of trading, how do you pick stocks to buy. It is the beginning of successful investment. Most stock trading seminars unfortunately, stress on this primarily. If you are investing for profit, learn how to pick the stocks. Once you can do this well, you are on the right curve towards profitable investing. Investing for profit becomes second nature to you.
We are here on living on the Titanic, either we don’t have the time or the patience or maybe we actually do. Whichever we think, will dictate our way of choosing, holding and sell the traded stock. Do we have ten mins or 2 hours each day in what I called our mindless endless busy daily life, that sense of time will decide our trading mindset.
Remember knowledge can be easily obtained from any bookstore but experience can only come from the street market. If one wants to easily acquire new profitable investing skills, it takes money to acquire the knowledge, then more money to put into trading practice before one can skill up and start earning. You could earn a million or even lose a million, I knew a few friends who lost that and today are a miniscule of themselves or some forget it and still march on with monthly visits to the bankruptcy office to make payments.
If I were to tell you, in order to learn how to invest in stock, there are three financial statements you’ll want to examine closely:
1. The income statement
2. The balance sheet
3. The cash flow statement
And your reaction is who’s got the time for that, then you are definitely the technical type.
Remember whether we use the fundamental or technical approach to stock trading, it doesn’t matter. It only is but the first step of getting our feet wet. It’s then the game begins, whether we make money or lose money, when we can execute our trading plan. But that’s another story.
Happy kaizen trading!