When I was a younger man, I asked the same Q about a different field - real estate.
My Dad, who is also one of my mentors, came back with a Q: "How do you eat an elephant?" I looked at him like he was speaking a foreign language or something I didn't understand.
“I don't know, Dad. How do I eat an elephant?" IMMEDIATELY, he responded, "When you got into the food business, went to school, moved up, graduated from the Culinary Institute of America, then progressed, how did you do it?"
I replied, "I did it the only way I could. As confidently as I could. But I certainly didn't eat an elephant."
Dad said, "Yes you did. The fact that you attained the level you did proved you ate that elephant. That elephant was the food business! It’s the same with real estate or anything else you decide to get into. No matter what you decide to do, you're going to eat an elephant. Real estate is an elephant. I'll ask you again: How do you eat an elephant?"
I STILL didn't understand. I looked at him with my head sort-of-tilted-to-the-side,-I-don't-understand look. I didn't say a word. With one slow word at a time, he answered his own Q:
"One bite at a time."
Then he said, "Just as you learned to cook and make delicious food, you learn to do other things - one step at a time, one bite at a time."
In the beginning, you should investigate the different investments you have available to you. Make THE BEST investment you can:
Invest THE TIME to educate yourself. Do on-line searches; read books; enroll in investming and finance classes; seek out and use mentors and coaches; ask Qs about those investments which truly interest you: stocks, options, currencies, commodities, bonds, real estate, etc. Once you have that knowledge, no one can ever take it away from you.
In the beginning "newbie" traders & investors DO NOT INVEST any money. It probably won't be too long when you'll feel you're ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in.
You should LEARN HOW:
A] the stock market works.
B] to invest in many, many various ways.
C] to properly trade
D] Properly manage the money in your trading account.
"Newbie" investors & traders ALWAYS make mistakes. In fact, throughout a person's trading hobby, avocation or career, he/she makes mistakes.
In the beginning, you READ & LEARN about the market & how it works: Read the very basic books about what the different investments are, how each investment works and learning how to trade that investment.
As you read & do research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before. Use an on-line investing site or an investment dictionary.
There are also free sites where you can set up a virtual account & almost trade as though you were trading with real money. Since Google is providing the ads for this site, you can do a Google search for those. There are quite a few of them. You might want to try a few different virtual trading sites, THEN make your selection.
A SIMPLER WAY TO TRADE:
This is what I learned about the stock market and trading:
1] I read a little about the overall market and how it works. I read about different aspects: mutual funds, currency, commodities, stocks and options.
2] I asked Qs of my coaches and mentors; suggestions were made to me.
3] THEN I read and studied about those areas which interested me.
4] I concentrated on those areas which interested me and which fit the amount we had to work with.
5A] For those strategies I felt comfortable with, I developed trading rules. For those strategies I didn't know anything about, I developed some trading rules.
5B] I discovered I only needed trading rules for 4 to 6 trading strategies.
6] Using those rules, I paper traded.
7] When trades went against me - when I lost money - I adjusted or "tweaked" those rules for that strategy.
8] I paper traded - again and some more.
9] I made further adjustments.
10] I’ll admit I didn’t do enough research for the right broker for our trading needs, wants or desires. However, the one we decided to go with is OK – but not the greatest AND definitely not the least expensive. Yet, the actual trading account was opened:
As a speculator, with margin, with the approval to trade options.
11] Yes, it was VERY scary AND I was VERY apprehensive: BUT, I MADE THE BIG JUMP: Going "live" - in-the-market - with real money. I lost some money. NO ONE ever succeeds in each and every trade 100% of the time.
A] BUT I didn't use the entire amount of the account's money on one trade. I learned HOW TO properly manage the money in the account.
B] I lived to trade another day. AND I continue learning and living to trade other days.
C] AND YES, I STILL have a few losing trades. BUT my winning trades are A WHOLE LOT more than the losing trades.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
Sources: My wonderful family!
My wonderful coaches and mentors!
TWO [2] of THE ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of!
Trading stocks and options more than 2 years.
"THE University of Hard Knocks"
Comments
10-17-08 and ALL Dates After:
Thanks to EVERYONE for making my days and the times I spend on AB
A WHOLE LOT BETTER! :-) :-) :-) :-)
I REALLY like this site and the wonderful folks who make AB terrific!
Thanks for the acknowledgement, boosting my spirits and every one of those points!
Very Truly Yours,
Ron Berue :-) :-) :-) :-)
by R_Berue on October 17th, 2008
Exactly true..It's the best to start learning to save and make your money happy by the scheme of invest money and helping it grow and securing your financial future!
Stocks or mutual funds both are good! Stocks are company's dividends in the form of shares, when you buy a share, you become a shareholder,when you lend your money to a fund you are investing in the mutual fund.On the long run,shares reap huge dividends,mutual funds are good for starters, but if you are serious about helping your money grow, you should consider investing in shares!
Nice post!
by Rosie_H on October 28th, 2010