The art of investing money in the stock market is strange. The depth of theoretical knowledge about investing alone will not provide the desired results. The two essential traits of an investor in the stock market are common sense and anticipation. One wonders sometimes, how men with ordinary intelligence are able to reap good harvest by buying and selling stocks and how people are able to get rich. If theory knowledge of economics and commerce will make one benefit from investment in stock, all commerce graduates, post-graduates and Professors of Economics should have been millionaires! But if an individual with the traditional stock-investing sense sharpens skills with the latest updates in this area, the results are likely to be precedent-shattering. One often reads about such success stories. Knowledge of theory and the practical sense are alternative beats of the same heart. What is theory after all? Theory is other man’s experience. A good and experienced broker is an invaluable companion to help you to ascend the ladder of success in the stock market.
Stock market is governed by the laws of waves, and not by the exact laws of physics. The words like ‘yes’ and ‘no’ are dangerous in stock investment decisions, and the word ‘may be’ commands much respect. The impulsive decisions about investing money in the stocks are the most dangerous ones. One has to remain cool and calculated while taking an investment decision. The goals have to be identified clearly-whether the objective is short-term gains or the long-term benefits! Above all, the qualities of a good investor are grit and determination. The best of the decisions may fetch one losses and that happens in any business. One has to work one’s way up with courage and determination.
An ocean of literature is available on the stock market options and many books lure the prospective investor, by attractive and imaginative titles like “how to make money in stocks.” Whether one will be able to make money following the guidelines given in the book or not, the book-seller definitely makes money by selling such literature. Ample Internet resources are available, covering the pros and cons of stock market investment. They will assist one to sharpen skills and provide confidence. But the real thrill of the game is in experiencing the joys and shocks of the stock market trade. An investor, instead of getting confused with the mass of literature, should note down the limited number of relevant points and experiment with them. The learning process in the stocks is invariably the trail and error method. Evolve a strategy and stick to those principles. Changing it too often will render one more confused. Make continuous research and analyze why the strategy does not deliver the results of your expectations. One can not expect windfalls at all times in the stock market investments.
Play the mock game of investment for a fortnight or two. Identify the weak points that led to the ‘losses’. Once you reach the level and you find that you make a correct decision that is the time to being investing money in the stock market. The irresistible urge to make money coupled with the knowledge about the pitfalls, will evolve one into an intelligent investor, where the chances of losses are less and he possibility of gains will be more.