If you invest this way, it’s always a WIN WIN! [BEGINNERS]

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Let’s get started

Let’s not waste time, I’m about to save you a whole lot of money, a whole lot of headache, and a whole lot of time. Thank me later.

If you’re new to investing, this post is perfect for you. If you’re anything like me and are enthusiastic about stocks and making money, than you’re already off to a bad start. I’ll tell you why. As humans we have emotions, thoughts, feelings, and a unique perception, this interferes with trading stocks. You see due to the amount of emotion and psyche involved in the stock market, there is a whole strategy of trading based off of stock psychology. Essentially it helps day traders predict the up or down movement of a stock. This is good if you want to make a quick profit short term, however it is high risk and I would not recommend it for beginners.

The Guts

Now that you understand the magnitude of emotion that goes into stocks, let’s talk about stocks. You can really see how potent the human tendency to overcomplicate things is, when it comes to stocks. The market involves simple math. Anyone can do it, it’s just addition and subtraction.

Example:

  1. You have the total initial cost of the stock plus the trading fee

Company X is currently selling for $10, if you buy 10 shares then your total initial cost would be 10 shares x $10 = $100 + trading fee (approx. $9.99) =$109.99

      2. minus the total current price of the stock minus the trading fee, and you will be left with a loss or a profit.

Let’s assume Company X goes up 5$ and is currently selling at $15, then the total current cost would be 10 shares x $15 = $150 – trading fee (approx. $9.99) = 140.01

Profit: $30.02

It’s as simple as that. Don’t complicate it with all the different equations, ratios, experts, strategies, etc. Now don’t get me wrong, I am not saying don’t USE them, I’m just saying don’t complicate them. The more tools under your belt, the safer you are in stocks. However trading involves a lot of emotions, so it’s important to not be confused, as that might cause you to make a bad trade out of impatience or confusion or worry. 

When you’re new to stocks you might not know what to expect, and when something happens you might not know how to react. Let me start by saying right off the bat, there is no right or wrong way of investing or best way, there are some strategies that are more successful then others, but it all comes down to whatever makes money. So take what I am saying as just advice, not rules or “the best strategy”, I am a simple investor, I don’t know Secret Wall Street information, all I know is how to avoid the mistakes I made, which cost me money, and how to get you started and on track, broaden your horizon, and then you must grow like a butterfly!

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