FINANCIAL FREEDOM THROUGH PROFIT AND SUCCESS IN THE STOCK MARKET
Stock market trading has exponentially come to birth over the years. For some time most people did not quite grasp the whole stock trading process and as a result overlooked the myriad of opportunities that would years later be made possible through profit and success in the stock market. Today, stock trading is a reputable profession from which some people eke a living.
Demystifying stock trading myths
Several myths surround the stock trading process. Out of these, the most popular and timeless of them is one that adamantly perceives investing in stocks as a gamble. Protagonists of this line of thought believe stock trading to be no more than a form of vain gambling, and gambling is a vice. This view has seen many steer away from the stock market for some time now.
However, it is worth noting that stock trading is concerned with assessing the real value of a company or enterprise by checking random price movements as in the Random Walk Theory. The whole idea is to determine both short and long-term profit values of a company. This acts as the basis for stock trading which eventually determines whether there is value gained or lost. Gambling, in contrast, is a dead-end vanity. Gambling is a give and take process in which no substantial value can is derivable as is done through profit and success in the stock market. Other known myths surrounding stock trading are that stocks go up only to come down drastically almost immediately and that stock market trading is a preserve of the rich and affluent with plenty of money to lose.
Prerequisite skills for successful stock trading
Financial freedom through profit and success in the stock market is not a mean feat, yet it is possible to achieve. The world of trading in stocks is murky and ridden with uncertainties. One needs not be a billionaire necessarily to venture this path, but a few handy skills would set one apart from the rest eventually.
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d stock trader must be highly analytical in that they can analyze data fast. This skill is useful in spotting trends through global charts in technical analysis. The stock trader is thus, in a position to make better-informed trading decisions by deductive reasoning. To have a broad array of research sources at one’s disposal also helps to shape a great stock trader.Overall, besides excellent record-keeping skills, a stock trader’s ability to focus and keep emotions in check helps one to develop a sound trading plan and stick to a given devised trading strategy. Such are the core competencies that guarantee the stock trader’s success.
The rules of the game
The are no set guidelines or rules that guarantee success in stock market trading. A good number of successful stock investors, however, rally by the fact that to venture into this line of trading, one needs to have enough money to their name. This is the rule of thumb when it comes to stock trading. If you haver enough cash flow, enough to suffice for your basic needs and still cushion you from bankruptcy when the math goes wrong, and losses come trudging your way, then you just might be lucky enough to achieve financial freedom through profit and success in the stock market. Apart from ensuring a sufficiency of funds, one also needs to adapt to new and diverse technology and make a clear cut trading plan at the onset of venturing into the stock trading process.
Success stories in the stock market
Both the internet and the print media are filled with quite some self-proclaimed stock trading millionaires. Some are of age, some middle aged, and some are teenagers. While would prove a daunting and time-consuming task to sieve through these numerous profiles trying to tell who is genuine from who is not, there are three famous stock trading billionaires today. Warren Buffett, Carl Icahn, and George Soros have scaled the heights to earn themselves innumerable admirers as well as billion of dollars through stock trading. These are by far the world’s most reputable stock traders. The people mentioned above are living proof that financial freedom through profit and success in the stock market is attainable.
The other perks of stock trading
There are other gains to stock trading aside from the financial freedom through profits and success in the stock exchange. Stock trading offers some cushioning against inflation. Inflation is known to increase corporate profits bin cash, and by so doing, raising the price of shares and dividends. There are, however, some variables surrounding this theory. Again, direct ow
nership of a company’s stock gives one some aspect of property and influence in the enterprise. One just may get to have a say on shareholder issues.
The odds of stock market trading
Despite the almost innumerable perks that come with successful stock trading, some disadvantages accompany these too. Stock trading is a fluky affair, one never really knows when they are going to hit a home run and take back all the cash or on the contrary, lose all their money. This inconsistency in the profitability of the entire process impedes a trader’s ability to do any advance financial planning.
As if not bad enough, the dealer is always faced with the fear that the company in which they invested might go bankrupt overnight in which case the trader stands the risk of losing all their business shares. Despite the negatives as mentioned earlier, a smart stock trader needs to be smart enough to know that there is power in diversification. The process of diversification would mean owning a lot of shares and stock in different companies so that if any of the companies goes under, then the trader is still left with several other share companies to trade from or with.
Trading in stocks and shares is not for the meek. It is not for the rich folk either. Getting to learn the market and getting equipped with the essential skills and resources puts one on a winning platform. All in all, financial freedom through profit and success in the stock market is attainable.
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