Trading stocks are difficult and we all know there are ups and downs, but it should not be treated as gambling. Gambling is also known as, so if you catch yourself “buy” that stock of stock you will be worth more tomorrow than they are today.
Smart Trading
1. Buy what you are looking for today http://159.65.15.84/.
2. Research the company.
3. Are they over-valued or under-valued compared to their actual net worth?
4. What are their plans over the next year, 5 years and 10 years?
5. Who is the owner, or CEO? Mark Zuckerburg cares more about his company than the money he makes. Others may be more apt to put on giant bonuses in their pockets.
6. Pick a follower. Warren Buffett has a long history of great decisions. You can look at the companies that are bound and choose to buy those shares.
Doing research on the company will allow you to make better decisions. If you’re a jackpot winner then go to the nearest casino. If you’re looking for a million dollar winner in a single day then play the lottery. However, if you’re looking to make 10-15% off your money and buy solid companies for the next 5 years.
Gambling – Clear Signs
1. Jumping into a stock because it’s hyped up in the news. If you’re reading the news online you have already missed the jump.
2. Getting mad because your stock didn’t increase in an hour or a single day.
3. Not telling your friends or family members that you think they will buy the penny stock with disagreement.
4. Riding Stocks to the End. Have you ever bought a stock that dropped 5 days in a row, then 10 days in a row, and you held it the whole way? You might think that it’s going to turn around, but it may not. You can while getting out. Smart traders tell you to always pick a “stop loss” number. If you buy a stock at $ 5.00 you can set it to sell automatically if the stock drops at $ 1.00 or 5% or 10%, your choice. That way your crazy thoughts won’t alter your smart decisions.
First things first, stop saying “trading stocks” or “day trading”, and start saying “investing in companies”. If you buy shares of GOOG you are a part owner of Google. If Google’s sales increase your stock. If good news comes out, Google will increase your stock, and so on.
10 years like GE, IBM and Microsoft? Or are they too new to judge like Facebook, Twitter and YouTube? Facebook replaces MySpace, so another company could possibly replace Facebook. That’s one risk in the negative column before I decide to buy FB or not.
Trading Stocks and Gambling It also shows you the cheapest places to make each trade. Switch to a lot of money if you can day-trade it.
