People that earn a salary of $40,000 a year are able to become millionaires in a short matter of time. The reason is because their main source of money isn't their job, it's their money making money. There are many factors that go into becoming a millionaire, like being frugal, budgeting, and multiple money pipelines. I want to focus this article on investing in the stock market and making a 60% return a year instead of the conservative 8% a year.
The words "stock market" usually gives people the chills. The majority of people look at the stock market as a death sentence, and think it is impossible to follow and make money. My own parents think I am crazy for investing in the stock market and becoming a stock broker. The main point is that the stock market is not scary, and anyone can make a good investment if they are willing to put in the time and confidence.
The number one rule to investing in the stock market is making a plan and sticking to it. There will be times were your stock will soar high and times that it will drop, but remember your plan or goal for that particular stock and do what it takes to achieve it and stop. Do not get greedy or panic. Simple rules and fundamental principles will make you a winner in the end.
We have seen from the past and current world news that the market is more unpredictable than before.
The year 2010 has presented new rules to investing, and the game is offering more rewards. The guarantee made by brokers is no longer constant and even the safest of investments are now just as risky as ever.
First, find stocks that have potential of growing, or that are under priced. There is no point in investing in companies that have already reached their peak in the business world. The easiest way to see the potential is looking up the graphs of the stocks from three months ago. If it looks like the company only moves one percent a month, then it's not worth your time.
Second, stay on top of the news that comes out for your business. The movement of stock market depends on the government and the companies. When the government comes out with good news, stocks go up. When companies come out with good news, it goes up. Read the articles written by credibility sources that will say if a certain stock is doing better or worse.
Third, follow your stocks you have picked and wait for the opportune moment to buy shares. You will be able to recognize low points from performance in the past. Once that moment comes stick out your chest and push the buy button. Now all you do is wait for your goal to be reached, then press the sell button.
Some of you are saying to yourself, what if the stock goes down after I already bought the stock? You have options. One, wait it out: usually stocks will return to their original spot unless the company is going out of business. Two, find a better stock: since you are looking at other stocks, sell your stock that isn't doing well and buy shares of a different stock that you know that will do good.
A goal of 5% a month is very achievable. I have experienced that this could happen in one day or the entire month. But it can happen and will. Today I bought a stock that went up 6% in one day. I sold it and took the rest of the month looking at stocks that have the same potential and waiting for the right moment to buy. For more examples and a real look at this goal being accomplished follow our blog and see what stocks we are trading.
No comments:
Post a Comment