Are you a beginner?

We all hear the stories of people making thousands of dollars and even millions in the stock market. It sounds like a fantasy. “Is this really possible?” you may be asking yourself. 

The answer is yes, it is possible.

We also hear the horror stories of people losing thousand and even millions of dollars in the stock market. “Could this happen to me?” you may be asking yourself.

The answer is yes, it can happen to you.

With these two extreme outcomes, most people don’t plan to touch the idea of trading in stock. It is too overwhelming or too risky. We think trading stock is for the brilliant business and finance guys. However, this is not true. Anyone can invest in stock, and although, the likely hood of making millions is slim, you can make some good money on any level.  

Investing in stock is both a trade and a gamble. It is a craft and it is pure luck or misfortune. Everyone can learn to invest in stock and if you are a beginner, this article is for you.

Here are the keys of investing in stock for beginners:

Take It More Seriously Than A Hobby

Investing in stock is not a passive hobby, unless you are a millionaire. Investing in stock is a very serious trade and you should consider the risks before getting involved. Have you ever heard of a parent investing their child’s college funds in stock and then losing it all? I know many people this has happened to and it is very unfortunate.

These risks should not be a reason you never learn to trade, but it is important to consider them before you start investing your family’s money. That is why trading stock cannot be seen as a hobby like playing tennis or doing puzzles. You are gambling money that you may never see again. Have you considered these risks? If not, take some more time to think, seek council, and discuss it with your spouse. If yes, then it is time to started.

Consider Investment Software

There are many investment softwares that are designed to hep beginners. If you are new to trading stock, you should consider investing in stock trading software because it will guide you, teach you, and help you enter into the complex world of trading. Some of these softwares tools are: IMS, Juniper Square, AppFolio, FundCount, and many more.

Trading stock is a craft, just like any other skill. Designers often subscribe to companies like Lynda for tutorials in order to seek guidance, training, and education. Musician often subscribe to companies that will teach them how to play specific instruments and songs. Considering purchasing software is a wise decision for anyone looking to begin trading stock.

Educate Yourself

Educating yourself on the industry is a daily process. The process of trading stocks is always changing year to year and it is important to stay up to date on everything you need to know. Many people make this part of their daily reading or carve out time in their day for stock education when they are serious about investing.

Listening to stock podcasts can be one of the most effective tools to learning the proper tools. Some of the best podcasts are: The College Investor, So Money, Stacking Benjamins, Stock Trading University, and more.    

Money Management

Before you consider investing in stock, you must be competent at money management as a whole. This is a simple and practical piece of advice, but many people begin investing in stock when their finances are a wreck. Sometimes investing in stock can lead to a more financial crisis than when you began.

Go over your budget, discuss your financial status with your accountant, be on the same page with your spouse, and make sure you have money to spend before you invest it. A poor decision would be to use the stock market as a tool to get out of debt. You may just find yourself in more debt in the long run.

Practice with Small Capital

As we mentioned before, you must have the money to invest before you start investing. This is why it is important to practice with small amounts of money. If you have an extra $30, $50, or $100 that you can use to practice with, use it. This is a great way of easing yourself into the trade of investing in stock.

If you are brand new to trading stock, a big mistake would be to start with investing thousands of dollars. If you do not know what you are doing, you may just lose that money immediately. This is why we encourage you to think about trading stock as a skill, job, or craft, and not a hobby.

Research Research Research

Outside of proper stock education, you must research industries. Some of the biggest stock returns come when people realize small businesses are about to become big and they get in the pot before everyone else. There are many opportunities in the stock world, you just have to know where to look. Research must become part of your job if you are wanting to take stock trading seriously.

Many people are investing in publicly traded hemp companies or cannabis companies, because these industries are on the rise in a new market. This is a perfect example of what to research before you start investing. LVGI just happens to be a publicly traded company for the hemp industry and you can find us on the OTC marketplace.

Passive Stock Market Strategy

As we mentioned before, trading with small amounts of capital is a good way to begin to making passive income. Some people diverse $1,000 dollars between five to ten companies, and they may just see small returns on each. This is a strategy for learning and does not require huge risks. If you have a full-time job and a limited amount of time to focus on trading stocks, this is a great way to earn passive income while learning the industry when you have free time.

Investment Plan

Making an investment plan is key to success in meeting your expectations. Again, trading stock is risky, and nothing is promised, but having an investment plan can only lead to success and met expectations. If you set your expectations low, you won’t be disappointed and will accept failure, but setting your expectations too high can lead to massive disappointment, debt, and discouragement from trying again.

Have Patience

You have patience with the stock market. It may take years before you see a return on your trades, but often patience leads to success. While some people find themselves lucky, like one would at the roulette table, if you plan a “get rich quick” scheme, you may find yourself with major loss and major frustration.

Like learning the violin, practicing with the stock market overtime,may lead you to be skilled at stock trading. There are rare geniuses who can pick up a violin and and play a beautiful melody. In the same way there are rare traders who through financial brilliance can jump right into the ocean of stock trading and make millions. However most beginners can not play beautiful music or see huge financial gains. Mastery takes patience and practice. Patience to learn a new craft is a safe decision when entering into risky business.

If you have found this article helpful, please share it and help others get the courage to begin trading stock today. If you are looking for a good place to start investing small capital in penny stocks, LVGI is a great place to start. If you have any questions, contact us today.