Create a trading strategy before buying your first stock! Of course, but how?? That’s were education comes in. This blog is all about what I’ve learned. I’m sharing and maybe it will help you, maybe it won’t. Maybe you’re already successful trading stock and you’ll find everything I say to be garbage. But that’s the key to learning. You read and listen to everything you can, and as you do you weed out what you disagree with and take note of those things you either agree with or want to test.
So how did I learn how to make a million bucks trading stock? I started to read, I started to listen. I went to the library and started checking out books. I learned about CNBC and started watching it everyday. I opened up a free account to play with fake money at Wall Street Survivor. Notice, not a penny spent! (if I don’t count my TV channels and my Internet access which I’d pay for anyway). And every day something of importance came to mind, I’d write it down. Probably the number one key to my success has been taking notes. Even if you already know everything, if you don’t write it down, you’ll forget it. Trust me!
Be sure not to just write down notes and forget about them! Reviewing notes can be more worthwhile than when the original thought came to mind. Have a marriage that’s not as good as when it started? Guaranteed you have forgotten why it was great. Write things down, and review them regularly!
It’s a common thing to begin discounting what you hear. Discernment is a necessary skill we all learn and learning discernment starts at a very young age. Learning to trade stock is no different than learning anything else. Whether right or wrong, true or false, or somewhere in between, it’s important to look for those things that make sense to you. Note them, test them and keep those things that work for you. What works for someone else is only a starting point. Key point to remember is that while you should seek every piece of knowledge you can about the stock market, there comes a time where more isn’t necessarily a good thing. There is a counter point to everything and within the stock market, this is true to a myriad degree. There will always be an indicator that contradicts another indicator. So while learning all you can is worthwhile, it can also be stagnating and paralyzing. Soon, you’ll start feeling you’ve learned enough to understand the market and begin creating your own strategies. Test them, develop them, throw them away and recreate them. But never, ever trade without them!
