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Sunday, April 19, 2009

Can You Profit In The Stock Market?

OF COURSE YOU CAN PROFIT IN THE STOCK MARKET! There are only three directions that a stock market will go, that is, Up, Down and Sideways. And in any direction of the Stock Market you can profit. You just have to keep in mind this saying: "The Trend Is Your Friend". Just ride the trend and you will be okay.
For example: When the stock is going up then you will buy the stock. When it's going down, you will sell short the stock and when it is going side ways, you will use the Covered Call. It's easier said than done. Yes, once it's done it gets easier.
These techniques though require: education, discipline, money management, mastery and patience in order for you to profit from the trend. What does this mean? It means that:
  1. Education. You need to know all the details, the whats, the hows and the when, of these techniques before you throw your money in the stock market. After you have knon and learned about all the information and details of the techniques, you need,
  2. Discipline. This is the time when you will put your learned details and information into a "discipline"others call it a system, I call it a discipline, that would fit your investment desires and goals. This will increase your probability of winning. Then,
  3. Money Management. This has to be incorporated with your "Discipline" so that you will not lost your shirt in the stock market. This will decrease the amount of money that you will lost in the stock market. Without money management, you will be gambling at the stock market, and this is very,very, very risky. Then,
  4. Mastery. You should and without exception, master your "discipline and money management" first before getting IN to the stock market. You need to fine tune your "discipline and/or "money management" to increase the probability of winning and narrow down the amount of money to be lost in the stock market
  5. Patience. After mastering your discipline or system, you need now to be patient in waiting for the right opportunity, the right time to really get in to the stock market.

If you can incorporate these requisite within your whole body system, chances are you will make good in the stock market (click for related topics). Although this is not a 100% assurance of profit since stock market is very risky, and conditions are changing every second, the odds will be in your favor since you will become an informed investor with mastered techniques before jumping in to the stock market.

These ideas i gave are just tip of the iceberg in stock market investing (click for related articles). You need to do a lot of research to expand your capacity in investing at the stock market.

For some basic ideas click this

Saturday, April 18, 2009

Stock Market is Gambling. WRONG mind - set.

Some people say that Investing in the Stock Market is like gambling.

My Answer:

It depends on how you approach the Stock Market. If you approach it as a gambler, then it will be gambling. If you approach it like an investor then you are investing not gambling. The fact that the number 2 Richiest Man on earth "Mr. Warren Buffett" is still investing in the Stock Market to accumulate wealth. This is one of the many proofs that Stock Market Investing is a real investing not gambling. Another proof that investing in today stock market is not gambling is the following equation taken from the idea of Dr. Harp which he called "Positive Expectancy":

In gambling, when you do your bet, the situation is always zero (0) expectancy.

50% win x $1.00 bet + 50% loss x (-$1.00 bet) = 0

In Stock market Investing, when you do your bet (will just call it a bet for comparison), the situation is always not zero (0) expectancy.

60% win x $1.00 bet + 40% loss x (-$1.00 bet) = 0.20, or

this situation:

50% win x $1.00 bet + 50% loss x (-$0.90 bet) = 0.05

Ther are so many proof pointing to the fact that today stock market (click for more insights) is not Gambling. For now I will just give you two (2). Keep your browser on this blog for mor investment information or click this.