I decided to enter the realm of amateur and expert investors. The Stock Market has proven time and time again to be an abundant source of income for the well-studied and I thought I could try it out. By the way, did you notice how I’m not saying “trying my luck?”
There’s this huge misconception about the Stock Market. Many will call it an online gambling casino, but I assure you it isn’t. The uncertainty of tomorrow’s charts is not really that uncertain if you can predict the psychological impulses of the general public. It becomes easier to determine the price movement of a stock when you realize it all boils down to fear and greed.
I strongly believe if you put in the work hard and study, all the knowledge, reward and patience will pay off.
Now, I know this is to be true with any career path you choose. So, why become a investor/trader?
Well, your market value has a tendency to accrue (or depreciate) without you doing absolutely anything. So, if you play your cards right, you can accrue value at an exponential rate as you go about your day.
Passive income has been my goal for a few years now. Aggressively trading individual stocks is the best approach I can currently take.
My experience thus far
I’ve researched blue chip and penny stocks. I’ve learned different strategies of entry and exit points. I’ve read The Millionaire Next Door and Rich Dad Poor Dad. I’ve used “paper money” (imaginary cash account) and bought stocks in real time. I spent hours upon hours trying to understand a company’s balance sheet, cash flow and market charts.
I discovered that the fundamental and technical analysis’s are key to picking great stocks.
After so much study, I entered the Market. I put my first deposit into Robinhood account – a commission free brokerage. I bought stocks in three companies and then panicked when they began decreasing in value.
Guess what I did next. I sold them. I bought the high, and sold the low.
The Market has a way of keeping your emotions in check because had I kept those stocks up to this point, I would’ve gained much more value on them. The loss was discouraging but I took it as a beginner’s lesson.
I then moved my brokerage over to Etrade.com and I studied even more. Bought more books. Watched more videos. Listened to successful traders. Now, I’m at a much better place where I have my gains far exceed my losses.
Needless to say, Im still making mistakes but not nearly as bad as when I was on Robinhood. The market is also at a massive discount because of COVID so it’s the perfect time to invest if you can hold your positions for a few years.