Stock Market Tips on Investing and Tradingthrough these troubling times
Are you worried about your financial stature during this pandemic? With limited opportunities for Small Market Enterprises and business opportunities, do you wish to learn about the stock market? Hopefully, these tips can help you invest and trade through these troubling times.
What type of investor are you?
Before you start buying stocks, the most important thing is to know yourself first. Are you an investor, a trader, or a gambler? It is important to know your appetite for gains and your fortitude for losses.
Investors are stock traders that study the market through fundamentals, charts and of course, broker recommendations. Investors are happy with the dividends and the steady price volatility of their equities.
Chupitero ka ba?
Traders or punters, (in local terms are called “chupiteros”) speculate using volume, price movements, charts, resistance and break out prices. As long as there is buying or selling pressure, traders are in for the action. The most important rule for traders is preservation of capital, so they know when to run with their profits or cut their losses. Being a trader takes experience, and discipline.
Are you a Gambler?
The gamblers are the ones that go in blind in the market. They get their recommendations from so called financial gurus, or happen to hear someone making a killing in the market and are curious to get into action. They would ask around from friends for “tips.” If they happen to catch a good wave, they win big, and are excited for more, but in the end, when they treat the market as a casino, the inevitable happens, the House always wins.
Know what you want and what your goals are in trading
It is important to know what category you belong so you can cruise easily, survive storms and avoid sinking.
