The “surface” of the investment world looks deceptively simple

It is natural for untrained investors to gravitate toward “story” stocks because the “story” tends to provide an aura of rationality and competence to a decision based on inadequate information and hope. The “story” helps such investors believe that their actions are intelligent and wise. There is nothing wrong with this. We all want to feel we are competent in handling our own money. The excitement fifa 18 buy coins and “adrenaline rush” that often accompanies this kind of investing is a great motivator that tends to keep the investor hopes up and his attempts at “making it big” an on-going endeavor. The problem is that the aura of excitement regarding the prospects of the company clouds judgment and destroys discipline. Clear sell signals are ignored because the individual “believes” in the company and its future.

The “surface” of the investment world looks deceptively simple. What could be simpler than buying a good stock? There are thousands of “good” companies in which one could invest. However, there is a good time and a bad time to own even the best company. A stock is not necessarily good to own because it is the stock of a good company. “When” the stock is purchased and at “what price” are critical issues. Traders have an assortment of analytical tools available that most people have never even heard about, let alone understand. Among the analytical fifa 18 coins tools used by traders to determine the “when” and the “how much” are Accumulation/Distribution, Accumulation Swing Index, Bollinger Bands, Candlesticks, Candlevolume, Chaikin A/D Oscillator, Chaikin Money Flow, Chande Momentum Oscillator, Correlation Analysis, Demand Index, Directional Movement, Dynamic Momentum Index, Fibonacci Studies, Fourier Transforms, Gann Studies, Inertia, Linear Regression, MACD, MESA Sine Wave, Negative Volume Index, On Balance Volume, Parabolic SAR, Polarized Fractal Efficiency, Raff Regression Channel, Relative Momentum Index, Relative Strength Index, Standard Deviation, Speed Resistance Lines, Stochastic Momentum Index (and Oscillator), Time Series Forecast, various Valuation Studies, and many others.

The point here is not to frighten you away from the market, but nhl 18 hut coins to give you a reality check. Do not simply throw your money at the market. There are people there who will gladly take it without even a “thank you.” Study the investment landscape by reading a few books first. Limit your risk by starting with an imaginary portfolio (but record your “transactions” as if they were real). Record your buys and sells along with the trade dates. Check your record over a number of months (and record what the market did during that time). When you think you are ready to invest real money, use a very small portion of what you have and diversify that amount by putting no more than a tenth into each position. Do this for awhile and learn your hard lessons by putting only a small amount of money at risk. Otherwise, you are likely to lose most of your money quickly. If you want a quick and easy way to make money, forget about the market. If you are willing to lose money and suffer a little ego-punishment while learning how to trade, you might be able to survive as a trader. Even so, there is no guarantee that you will actually become wealthy through your trading.

Leave a Reply

Your email address will not be published. Required fields are marked *