Successful Stock Trade
Ask readers some stock related questions… get their juices stimulated?
Have you lost 50% of your portfolio in the recent market gyrations?
Have you traded in and out of stocks with no clear goals or directions?
Are you facing personal finance troubles?
Your Financial Journey Begins…
This site started out as a personal journey on another website, a journey for me that began in 1995. What happened you may ask? One of life’s turning points: my marriage. For many people, the onset of marriage, the birth of a child, the prospect of retirement or redundancy, all act to focus the mind on one’s personal finances.
While I take you through the steps to successful stock trading, I will encourage, describe and examine the basic steps in light of my own personal experience. However, each of your own situations may be quite different from mine, and the story of how you arrived at your current place also different. As you correspond with me, I’ll try to offer my own insights, too.
Start at the very beginning
For those interested in stock trading, it’s a risky field, but one thing is certain: everyone needs proper foundations. By building up your foundations before you start investing, you will lay the the concrete for a stronger and much more satisfying experience in the stock market.
So let’s take a look at the basic steps to successful stock trading.
Step 1: put your financial house in order
In the excitement to invest or trade stocks, many investors risk losing (and do lose) their shirts because what starts out as a gamble on a hot tip often means that person’s savings have gone down the tube, or perhaps even their next mortgage payment or more.
So putting your finances in good stead, though the least exciting part of the journey to successful stock trades, is in fact the most important.
You will learn the basics of how to budget, why to pay down high interest loans, the risks of borrowing. More than this, you will gain an insight into the laying of your foundations. You will also find out how and why you should set aside some real savings in the bank, even before you make your first successful trade.
This blog doesn’t aim to be a personal finance blog, so we won’t necessarily delve as deeply into this area as could be done. You’ll be pointed to other resources for that.
Ready, set, … wait!
Step 2: We will find out about the stockmarket, what trading is, the ways to trade stocks, which brokers are best, and which are suitable for successful stock trading.
We’ll also look briefly at the different markets you can invest in: stocks, bonds, commodities, options, and much more.
Step 3: We’ll look at what kind of risk profile and rewards you are looking for by taking part in the stockmarket.
Are you looking for early retirement, saving for a house, your child’s education or you just want to be ‘rich’… Whichever of these is your situation, we may have some suggestions that you could look at.
Step 5: We’ll also be having a look at some stock portfolios that you could trade. Although I won’t be suggesting particular trades, we’ll look at some strategies and ways of organizing your port
What qualifications do I bring to this whole affair? None. I’m a teacher who fell into business, started working on website development and reading about the stock market in depth. I’ve traded stocks through the dot com boom era, earning a decent return before losing it all in the bust that followed. I’ve clawed my way back with some effort to a portfolio that is currently worth around 50% of the dotcom boom period, but with a monthly dividend, and about 10% in cash at the moment.