5 ms·
I've had a good read, where the market is compared to a steamroller, that starts to roll on a street at any random time. On that street are a lot of pennies and
by theGeatZhopa 3y ago
I've had a good read, where the market is compared to a steamroller, that starts to roll on a street at any random time. On that street are a lot of pennies and everyone is welcomed to pick up as much as they want. But, you have to pay a entrance fee, and you have to line up in a que. When it's your turn, you can pick the pennies. You are not allowed to alter your position to your favor, but can leave the que without getting the entrance fees refunded.
Then, there are some tricks, like picking up pennies and as soon you notice the steamroller starts - throwing the pennies onto your successor in que at once. Then, he/she picks it up and get overrun by the steamroller.
So, the essence of this Story:
It's all about knowledge when the steamroller starts.
The steamroller is the big amount of the participants. To be overrun by the steamroller means you'll lose a part of your investments/all of it.
So, check the news !always! And at any time. Check some analysis of the companies in question. Check their properties. Check the overall news coverage in terms positive/negative meaning. And relate that all to the stock price. It's kind of gambling if you want to trade. You need to assess and align it to your risk taking capabilities.
Other is, investment into what you believe. Just like, renewables..
For my self, I play with virtual money in stock trading simulators and try to get along with the whole thing. My risk taking capabilities aren't to high and I'm more of a type of long term investor.
So, doing some reading on technical stock analysis and with this knowledge I try to get along (virtually) :)
Some day, when I'm sure what I do and see some good trading strategies developed within the simulation of stock trading, I start with real money.
Good luck mate!