Playing the stock market
We may have already talked about the need to not only save money but also invest it. Invest in yourself, your projects and your career to earn even more. But some guys, when they hear about «contributions», just remember about the game in the stock market and begin to merge to their capital, and later remained with the broken trough. Many are convinced that the stock market is too complicated. Others say that it is very simple. But the truth is, as usual, lies somewhere in the middle. And that’s what we think about games in the stock market.
1. I can’t afford it
The vast majority of Russians live from paycheck to paycheck. And financial position of our citizens to improve is not going to like. Why people think there’s some short-term operation, which will allow them to enrich themselves. They think that they will invest their money, and those easily repulsed. Not only do these individuals lack the necessary knowledge of the market, so they substituted their own future.
So if you want to come up for auction in order to raise their critical financial situation, then forget about it. But if you’re the person who carefully plans everything and thinks decades ahead, and your financial situation allows you to indulge in adventure, then go ahead, will not be worse. However, it is still worth to start small. Invest in equities a small percentage of the salary, study the market, don’t make any sudden movements.
2. It’s not gambling
There is a myth that working in the stock market is like gambling. And part of the truth in this myth exists because people who do not understand what you are doing, you can say, playing dice. You don’t have a serious chance to successfully invest in a campaign if you lack the necessary knowledge. The research activities of the campaign stands at the forefront, you also must arm yourself with knowledge about the sector of the market, which drew the attention and also understand the risk. A smart investor always expects a profit, that will give him long-term investments.
For beginners incomprehensible slang used by people working in the stock market. Some even believe that this was done deliberately in order to lead the gullible astray. But it is not, abbreviations can seem confusing, complicated, but it is fee to participate in this work. On the Internet you can find dictionaries that will tell you about thousands of terms used in the stock market. If you scare such a study, it is not necessary to do this. Otherwise, you simply will not be able to be guided well in this work.
The work of the trader not involve any serious physical effort, but it’s still difficult intellectual work, and as a hobby we would not recommend it. You need to analyze the dynamics of the stock price, to know how to read the economic news, understand the impact of economic news on stock market, well, have a good temper, it is so easy to lose your head in serious win or get depressed when losing.
He’s not the hundreds and thousands of percent, as some people think. Most can earn investors, speculators, tend to earn less. However, you probably know one of the most talented speculators of our time, George Soros. In General, you hardly will be able to see a couple of zeros on his account unless he started to play. Free money does not happen even on the stock exchange. For most people it is much easier to get a regular job to see serious money of the investors.
6. Financial illiteracy
Believe me, most of us don’t understand the simplest of economic transactions that occur in the market. Many people use this ignorance to fill their pockets. And these people will convince you that the game in the stock market easier than drink a beer. But be careful. The economy is actually a complex science, and it is necessary to study and understand even those people who are far from it. If you want to try yourself in trading stocks, you have a long way to self-education in this area. Not is the nature of genius investors.