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How to learn the stock market in 5 steps... From beginner to beginner

Discussion in 'Educational videos and material' started by Jrich, Apr 29, 2017.

  1. Jrich

    Jrich Well-Known Member

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    This is a "FUBU" (for us by us) type tribute to all the other newbies out there who wish to venture into this abyss called the stock market, but haven't a clue where to start and lack a compass to guide them

    As of this writing (4/29/17), I've only been learning for 4 months... So I'm not far ahead of you, and I'm certainly not the person to show you the ropes... I have absolutely no credentials to back my claims up.... But I do believe what I have to share is useful, because I think I've come a long way mentally in a short amount of time.... And here is how

    STEP #1.... OBSESSION

    As with anything in life, success is proportionate to will... Rarely do you take out of anything more than you put into it... And the measure of will is usually mirrored by interest

    For example, think back to 7th grade algebra in school, how fun was that?... Did you learn it?.. Probably.. Could you use it today?... Probably not... Why?

    Now think of something in life you enjoy doing, a hobby or passion... Something you do every chance you get, and think about when you're not doing it..... You're probably pretty good at that thing right?... Why?.... Practice?.... Maybe, but you practiced algebra too, so what's the difference?.............. Obsession

    Things are simply easier to learn when you enjoy learning them... Now, you don't have to be obsessed with the stock market to learn about it... But it will help a great deal if you are!

    STEP #2... EXPOSURE

    Exposure is not the same thing as experience... Experience is king, without question... But experience takes time, exposure can happen now

    By this I mean simply, expose yourself to any and all input or information you can possibly lay your hands or eyes on!... Eat, sleep, breath, poop and sneeze stock market!...... There are a ton of places you can find information now a days, after all, this is the Information Age

    In fact, you've already found one here on Stockaholics.... You need now only look and listen, you'll find yourself learning things you didn't even know you needed to know, and there will be things you don't understand, which you will look up and find more things you don't understand about the thing you didn't understand to begin with... This will lead to a clicking/reading frenzy and a long chain of learning things about the things you're learning about

    Eventually you'll be surprised at how much knowledge you picked up, and the whole big, broad, blurry, intimidating picture will be narrowed down into a more manageable focus

    STEP #3... FAILURE

    That's right.... Fail!... Lose!... Get the taste of defeat in your mouth!

    A wise, seasoned trader or investor would advise you not to even begin trading or investing until you have a solid foundation of knowledge about the market.... And he or she would be right to say so!..... But you and I both know you'll do it anyway

    So go ahead, dive in!... There is no skipping step #3, that is one thing I can guarantee!.... So hopefully you will dive in small and take a smaller, less painful lesson... But that is your decision

    Failure is a necessity of learning... We did not jump on a bicycle for the first time and race down the hill.... Well, my friend Jimmy's little sister did, because he pushed her, and that ended badly!... But the rest of us started slow, crashed, and got back up... We learned by pain, and pain is something we never forget!.... So jump on your bike and crash, just stay away from Jimmy!

    STEP #4.... FIND YOUR STYLE

    In step #3 you probably found what didn't work for you... So now you can focus on what does

    There are an infinite number of styles and strategies within the realms of investing and trading.... I won't go into great detail, because there are examples better laid out in other places.... But I will point out now that step #4 is the biggest step of all... For this will not only narrow down your reading and research, but it will also weigh heavily on every decision you make going forward

    So choose wisely!... Think hard about your current situation and future goals... Pay close attention to the other members here, their content and opinions... And ask plenty of questions before you advance beyond this step!

    STEP #5.... LEARNING

    What's that?.. You thought you were on this step already?

    Sorry... Step #5 never ends... To quote one of the most influential stock operators of all time:

    “It is a deeply interesting subject. The more you learn, the more you realize how little you know, and the more anxious you become to acquire proficiency.”

    Excerpt From: Richard D. Wyckoff. “How I Trade and Invest In Stocks and Bonds.” BN Publishing, 2012. iBooks.
    This material may be protected by copyright.





    In closing... After first reading this, it probably seems little to do about nothing... But keep these steps in the back of your mind, they may just start to make sense as you move along...... In the title of this thread, "from beginner to beginner" has dual meaning.... If you can figure that out, you'll probably do ok
     
    Ajc612 and JerryM like this.

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