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How to Trade Stocks

Stocks is not the same as gambling (solely luck). It’s more of a strategy game, with “a lot” of rules. If you follow the rules, though you also lose. Your gains outweigh your loses. When I make 4 loses for example last week, one of my gains easily outweighed 4 loses. But when you have a good week, those 4-5 gains could mean multiplying income. As you diversify and have more to invest, you make a lot of money. However, your overall % of return is lower because you need to play safer than a smaller budget.

Disclaimer: This is not financial advice and am not responsible for any financial loses or gains.

This blog is more of an introduction to stocks, what it is and how they work. How the prices move and all that jazz.

A stock is a share of ownership of a company. When you own most of the company, you usually start getting a say within the company’s such as a board the directors. Stock prices are not based on company growth, it’s based on the market. So it’s how other’s will and do perceive the company represented by the stock.

If more people want to buy a stock (demand) than sell it (supply), then the price moves up. On the other hand, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

^ This would be the fundamentals to being able to look at stocks and those graphs correctly. If you understand that, then we can move onto more advanced terminology and how to actually figure out good times to trade.

 

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