Stock Markets Exposed

How long does it take for a retailer to start making money from stock market. or is it not possible at all!!!!

Public Comments

1. The stock markets is not about "how long does it take" but about "how much do you know". If you have the right knowledge, you can start profiting right from your very next trade but if you are a complete zero in terms of trading systems and knowledge, then it will take as long as "NEVER" to make any money. There are quite a number of things you need to learn before you can even start thinking of the stock markets ... 1. You need to understand how the stock market works and what it is exactly about. 2. You need to know what are the different styles of trading in stocks and shares. 3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take. For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com/)......... Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor? After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not : 1. Why are you of the opinion that this stock will rise? 2. Is your opinion valid in the first place? 3. When are you expecting it to rise? Can you hold on for that period of time or longer? 4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon? 5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out? 6. Where is your expected profit taking point? What is your profit taking point based on? 7. Does the way you are buying the stock allow you to hold on until your expected profit taking point? 8. How much of your money should you dedicate to this one trade? 9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use? 10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock? After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life. Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes. So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful. Take heed and good luck. All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets. If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/ In conclusion, what I am saying here is that trading stocks and investing for profit is a professional game that takes years and a lot of money to learn, so it is not something that someone in need of college fees should do ... now.... but you should certainly start to learn about it right now. Hope these information helps. http://www.optiontradingpedia.com/ http://www.mastersoequity.com/ .
2. This is an unusual question. What do you mean by the term retailer in this context? I assume you mean small investor and not someone who buys wholesale and sells retail. There are a lot of people who make money by investing in stocks. There are also a lot of people who do not. But in general those who do far outnumber those who do not. Or anyway that has been the trend in the past. It could change. If you look at the trend of price increase of some of the better mutual funds you will find that they have had an average return over a long period of time of better than 10% annually. Some even better than 13%. These returns are not consistant however. They do vary greatly from year to year. Some years they may actually be bettern than 50% and other years they may be worse than -25%. Unfortunately, those who bought tech stocks heavily during 2000 are still waiting to make money. The key to making money is diversification and investing in both good times and bad times. The old adage is that the best time to buy stocks is when everyone else is selling them. That seems to apply today.