I am just curious as to how ordinary everyday people go about becoming billionaire stock market investors, and what they do to create such substantial wealth from minimal capital, say, a few thousand? How do they do it?
Jeez. People really don’t answer properly do they?
I have to admit, as an investor, I found it really difficult to make money in the beginning. The smaller the size of funds, the less you can buy, the less the chances of success.
In reality, the best way as starters, is to
a) ignore what others are saying about a stock
b) invest in something you as a consumer know best–look around you–what are your friends all starting to buy? Lulu-lemon, Starbucks, all started off the exact same way, and industry heavyweights like Peter Lynch still try and observe such regular buying trends.
c) purchase no less than 100 shares. Trust me, less than 100 shares, means that even if the stock goes up $1, you won’t make even $100!
d) reinvest profits into additional shares
e) don’t diversify too much–sounds counter intuitive, but in reality, when you have a small amount of funds, don’t put it in too many baskets! The more the baskets, the less the chance of big returns.
f) don’t take your loss unless you really really think the company is going to go bankrupt, or will not survive the downturn. If its a small short-term decline in profits–heck, stick to it.
g) don’t give up and look at how to understand the underlying profitability of a company!
If we knew that, we would all be doing it wouldn’t we? And if we knew that, telling the world how to do it would be a surefire way of making it impossible to do in future.
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most people do not plain and simple.Any e-mail you get or mail shot telling you how easy it is to make money on the stock market is a con.You cannot make the huge sums city traders make simply because you need the financial backing of a major investment group to make the kind of gambles these gamblers make and for the return to be sufficiently large to make it worth while.Its a bit like an on-line race tipster he has a hundred people who send him ten pounds a week for tips so he earns £4000 a month nearly 50 grand a year. yet every race he sends out tips to every person except in a ten horse race every horse will be sent to ten people .Now if he spreads the favourites and second favourites around his hundred people they are bound to hit occasionally and on every race he will have at least ten people that he picked a winner for even if a complete outsider wins .I would also point out that most of the big money deals are made by insider trading which the SFO has recently made several arrests .Because these traders are not playing with their own money they can easily gamble billions.
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My opinion is that much of this is ‘insider dealing’. If you had a friend within the stock market trade I’m sure he would inform you ”to place some money here or there”.
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I am also hunting for such information. However I hope you will find this also interesting "Can you become a millionaire by trading Forex?" on
http://www.howtotradeforeigncurrency.com/frequently-asked-questions-about-forex-trading.php
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Ask Warren Buffet.
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Jeez. People really don’t answer properly do they?
I have to admit, as an investor, I found it really difficult to make money in the beginning. The smaller the size of funds, the less you can buy, the less the chances of success.
In reality, the best way as starters, is to
a) ignore what others are saying about a stock
b) invest in something you as a consumer know best–look around you–what are your friends all starting to buy? Lulu-lemon, Starbucks, all started off the exact same way, and industry heavyweights like Peter Lynch still try and observe such regular buying trends.
c) purchase no less than 100 shares. Trust me, less than 100 shares, means that even if the stock goes up $1, you won’t make even $100!
d) reinvest profits into additional shares
e) don’t diversify too much–sounds counter intuitive, but in reality, when you have a small amount of funds, don’t put it in too many baskets! The more the baskets, the less the chance of big returns.
f) don’t take your loss unless you really really think the company is going to go bankrupt, or will not survive the downturn. If its a small short-term decline in profits–heck, stick to it.
g) don’t give up and look at how to understand the underlying profitability of a company!
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Most don’t, you only hear from the ones that do however.
In any case they have inside information, not available to the common public which gives them an advantage.
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Ordinary people do not. Only a very few who have both skill and luck.
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