Learning About Stocks and Investing
When I first started learning about stocks and investing, I was iffy about it all, didn’t know if I should try lest I lose all my money, and was just unsure, even though I was interested in the subject. What I have learned in the past 10 years about stocks and investing is that it’s natural to feel nervous when you are not in your comfort zone. If you have a willingness to learn, then you cannot fail in this regard. Most of us don’t want to do the wrong thing, and make costly mistakes, but I found out that making mistakes and learning from them is key to your ongoing process.
Learning stock investing is a process and it is an ongoing one. No matter how long you do this, you will never know everything so be content with that. I think the #1 goal in this process is to start to exponentially increase your financial education. So my advice to all those who want to start learning about stocks and investing is to accept that you cant know everything, but start learning from those who came before you and have been successful in this field.
Nosce Te Ipsum (Know Thyself)
You will also want to invest according to your own personality. This will take some time as you may not know when you first begin. I did not know if I was a trader, an investor, a speculator, or what but what I did know was that I did not want to be a gambler when it comes to financial markets. This was not my goal. There are many types of fields you can get involved in such as forex, currencies, stocks, bonds, options, etc… I found out that I dont particularly like day trading. I found that I am more of a long term trend investor. So I started to focus my efforts there.
Up until I really started wanting to invest in stocks, I only had a traditional education in this, which is just all the info you been told by your job’s benefits department, friends, family, etc… But if all these people knew what they were talking about, how come none of them were doing it with any success? When I started to ask this question, another side of the coin was flipped over for me that I had never seen before. Now I ask, “Well, who are those who are successful at this?” I had to start looking at people like Warren Buffet, who was not born with a silver spoon in his mouth, yet became a billionaire by investing. He also recommends a great book of which I can’t believe I was trying to invest without this macro economic information about financial markets. Its called, Bull!: A History of the Boom, 1982-1999: What Drove the Breakneck Market – And What Every Investor Needs to Know About Financial Cycles. I consider this required reading for anyone that wants to know about stocks and investing in financial markets. This is a great place to start.
Now, when you start learning about stocks and investing, don’t think you have to do everything someone else does or believe everything they believe. But you should listen, learn, and then adapt these things to your own persona and develop your own investing style. You will get better at this as time goes on.