Stock Market Basics Revisited
As the days get shorter and the seasons begin to change, another rite of passage occurs. Junior is packing his lunch and books for the trip back to school. While the average adult no longer visits a classroom, the average investor can always use a little help with investing. Revisiting some stock market basics from time to time can be very beneficial.
Stock Market Basic 1: Volatile Markets Make Bad Stocks Look Good
Always remember, if it walks like a duck and quacks like a duck, itís probably a duck. This stock investing concept is obvious to the seasoned investor; active markets lure the investor with promise of great gains. Just because a company can gain funding doesnít insure that it has a solid business plan or is a strong investment option. A plan such as the candlestick basics should help even the most experienced investor avoid this pitfall.
Stock Market Basic 2: Investing is a Game of Chance
Gambling (interpreted as day trading, IPO flipping, buying on hot tips, etc.) is best left at the poker table for the average investor. The dynamics of the market may change, but the basics of stock market investing are always the same. Investing requires insight, and not just the hot new buzz of the day. It requires a plan for long term investing.
Stock Market Basic 3: Follow the Beaten Path
The market has been a saga for years. Fortunes made and lost, ups and downs experienced, and in the end, most of the tried and true rules remain for true. This basic stock market principle is not lost on the giants of investment, who consistently find the highs and lows in the market and capitalize on them. Whether investing in currency trading or option trading, the lessons learned by others and passed down are almost always the best.
Stock Market Basic 4: The Job is Always Easier with the Right Tools
This lesson conjures images of being under the hood of that old car, but the stock market principle here is directed to stock market trading tools used in working the market. There are many programs available, all of which offer their theories and charts to add credibility to their claims. Finding a proven system using candlestick trading tactics is exactly the tool needed to make your goals in the market a reality.
Stock Market Basic 5: Why do the Answers Change as Soon as I Figure Out the Questions?
Asking intelligent questions of people who have been in the stock market community for awhile is a great resource and it is the final basic stock market principle revisited. FAQís, expertís columns, stock market newsletters and the like are prime examples and excellent resources for learning what has worked for others.