Making Money in the Stock Market

For years people have been making money in the stock market. And for years people have been losing money in the stock market. The stock market has become so popular in today's society that it wasn't known since the first depression and that was since the 1930's. Not so long ago, back in 2000. The world thought that the world was going to end. And soon the Y2K rumor was spread far and wide through-out the world. Next came the real-estate crash in 2008. Where all the housing markets fell into the hole. To Find out more click bottom.





You Can Make Money in the Stock Market
No matter who tells you or what rumor you've heard. You can make money in the stock market. The only thing that you can do is, learn what its all about. Study what a stock market is and how people make money in trading stocks. And find out what does the stock market have to do with the economy.


What I am going to share with you is some basic information on what the stock market is and how you can make money through investing. And what platforms that you can use to gauge your plan for your future.


As the media goes and rumors are spread. Don't get discouraged that the stock market is the wrong idea of making money. Yet, it is not a wrong idea. It is a good idea. Its just that, finding the right time to get in and get out. The problem that people have is that, they get too emotional of their money. When they start to see an increase of a stock. They get excited. The market feeds on your emotions. When you panic about a stock falls, the more it will fall and your emotions run high and you'll start to stress out. If you are operating only on emotion. Then you haven't done your home-work.


To be honest, I've been there and done that. Then I learned from my mistakes. I learned that the money that I use in my trades aren't mine. That way, if I do lose money. I don't have to worry about it.


If you are using borrowed money. That's a wrong way to go. When you hear people or brokers use the term trade on margin. I wouldn't advise a new-bee to start out with a margin account. Even if the company that you are working with says; "You don't have to worry. Your investments are insured." Yeah, if the stock is improving. If you use margin, you are using a high-risk route. Its like going for a loan with a mafia and you will have to pay them back on interests. If you lose their money? You will have to sell your life to them.


What I am going to tell you here on this blog, is the fact that, you can make money in the stock market.

I know it sounds like I am repeating myself. I just want you to be motivated. To know that you can still make money regardless of the rumors. All rumors are, their just rumors. If you choose to invest into the stock market. And you only have $100 bucks to your name. You can diversify it. This is a word that you have to learn and put into your vocabulary. When you hear people talking about diversification. Or diversified portfolio. They're talking about; Spreading your money around.


I had to learn this technique very well. When you go into a stock market. You have to think like a shopper.
You have to think about where you're going to spend your money? You have to plan out what you are going to buy and know your budget. If you are going with a broker. A broker will give broken advise. He/She may or may not know what stocks are good to buy. That is why, you have to do some research on your own and make your own trades.

As for me, I have been trading on my own for 5 years. I have learned my mistakes and learning more as I go along. Since 2009, the year that AIG crashed. That year, I thought to myself; "I can make money with this stock." Without my knowledge, the stock was going down and down, down, down, down. I was buying as it was going down. They call this; Dollar Cost Averaging. I was buying the stock at a cheap price. I had about 100 shares of stock before it split. And before I could sell my stocks on option. The stock tanked and split, leaving me with only 50 shares. The other 50 AIG bought from my broker. And I lost, big time.


Through my mistakes. I want you to learn from them. When you go into a stock. Look at its performance. Study the way its moving. When reading a stock chart. Its formula is based only on a monthly basis. Its not based on a daily basis. As with my blog, The Art of Investing. You will find just the basics of investing. Here I will give you some of the intermediate skills to win in the game of investing.


When starting out with a stock. You have to look at the charts. Here is an example:  Figure 2.1 courtesy of Sharebuilder.com

At the top left, you have the date, open price, the high, low and close. The up and down lines are the stock movement from month to month. At the top of the chart, you have the comparison button, technical indicator button, Event button, Chart styles button. It gives you the tools to gauge what you are looking for to make money and to find out whether the stock is a good stock to invest into or not. On the right side of the chart, you have the illustrated price of the stock from its low price to the high price.

So, before you get into a stock. 1) Diversify your money first. By buying stocks at a cheap price that pays dividends. It will help you out in the long term. 2) Use dollar cost averaging, to buy stocks that you already have, but buying more shares of one stock.

Here are the keys to having a profitable portfolio:

• Research
• Plan
• Budget
• Diversify
• Dollar Cost Average

Without the keys, you will not be able to have a profitable portfolio. You wouldn't be able to make your millions and be able to buy your dream home, car, boat, plane, vacation. To find out more subscribe today!

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