I get so many questions from people that say they are beginners and they always seem so confused. I generally tell them that I wish I knew than what I knew now, which is to keep it simple and find a mentor.
The markets can be very complicated…or insanely simple. The hardest part of investing is keeping it simple. The second hardest part is finding someone to help you keep it simple and than someone else to back that person up and so on….
I love reading about the economy and the markets, but for the time spent, I might have been better off as a lawyer just billing my time :) .
For all the beginners and those looking for a fresh start, this post is for you.
Here are ten rules to follow to enjoy the Stock Market:
1. You are not privy to inside information. Ignore tips.
2. If you are investing fake money or money you cannot afford, you should be working to earn and save enough money to do it with money you can afford to invest with.
3. Once you have enough money to invest (5-10 individual stocks) just start. Pull the freaking trigger. Feel the rush.
4. STOP doing it for the rush.
5. If you are going to invest, keep your costs as low as possible. Be cheap.
6. Learn to recognize healthy markets. I define healthy as hundreds of uptrending stocks with institutional support. Stocks trading above $15-$20 with volume of 500,000 shares or more. I want to fish when/where fish are jumping in the boat.
7. Read less about stocks and markets. A daily check at an aggregator like AbnormalRetrums.com is truly all you need to stay ‘cocktail party’ smart.
8. Prune Prune Prune…NEVER get to the point where you dread looking at your statement. NEVER. Find a backup to hold you accountable. Find another.
9. Keep a journal, blog, Stocktwits account..something to keep you even more honest with at least yourself. You will invest better.
Not sure if I missed something so please chime in with your thoughts so I can fill in a tenth….