So, You Want to Play the Stock Market?

Does Dollar Cost Averaging Really Work?

In spite of what the rising waves of anti-capitalists might have you believe, it has in reality never been more important to the financial stability and well-being of our society to create, preserve and spread wealth creation. But how do you know how to navigate this seemingly confusing and topsy turvy world? Is it even worth it with global markets in tumult and one new corporate scandal after the other to play the stock market?

The facts are this: If you are at the stage of your career and life development where you have some money to invest, then finding the right stocks or funds is still one of the best ways to leverage risk and manage potential income and if you’re not the kind that trading yourself or you don’t have the time to do it a well-sourced broker is still your best bet and contrary to popular belief, there are yet some “good guys” around. Learn how to trade.

We’re going to help you understand some of the terms and processes around trading and investing and how to find some advice if you’re thinking about giving it a whirl.

Remember, always seek advice from reputable sources or agencies before doing any form of trading, whether it’s online on your own, or through a broker or financial manager.

Learn the Speak

Even before you source a broker, manager, or advisor, spend some time reading about the stock market and start getting a little more au fait with the jargon and terminology that’s used in the market. This will make it easier to understand what the folks around you are talking about or what’s been writing about in the Wall Street Journal, but it has the added benefit of creating the impression that you know at least a little bit of what you’re talking about. That could yet stand you in good stead.

You can learn all about the most commonly used terms and phrases, here.

Know Who You Are as a Potential Trader

So this is kind of important to establish early on in your trading career, whether you’re going it alone or using a broker. It’s important to establish what your end goal is, is it a figure or a series of acquisitions? Do you want to be taken more seriously in the stock market world and use your dividend income for reinvestment?

These are all important questions as they’re going to establish the type of trading you’re going to do and also the type of companies that you want to trade in. The rise of the “concious capitalist” is having an impact on how certain companies conduct business and do their trading and if you fancy yourself an investor on a certain mission, this may be the option for you.

All of that side, if you’re wanting to establish a long career on the markets then you’re probably going to have to learn how to check your conscience at the door. Facts, don’t care about feelings and if you have an eye to be a serious trader and make some serious money, then this is something you’re going to have to get comfortable with.  What you do with the money that you make, can carry a moral currency if you wish.

Learn How Other Major Markets Operate

You don’t have to go and study economics or accounting, but it won’t hurt to spend some time just reading up about other big global markets. Especially now that it’s becoming easier via online apps and services to access big companies in places like the UK, Germany, and Japan. So before you get tempted to do that, learn a little something about those exchanges and their systems first. 

Global investors like the UK because of their centrality in the financial markets and transparency in business, so take some time to understand how business in Britain works, learn about preference shares, and how to find promising start-ups. You’ll be banking those pounds in no time.

Learn About Companies, Not Just Stocks

Before you know who you intend to be as a trader, you’ll first need to know what kind of companies interest you, companies that you’re familiar with might seem attractive at first but do you really know what’s going on with them? Don’t be seduced by glitzy, big branded events, bells, and whistles but rather take some time to understand a stock sheet and what they’ve done in the past and how.

In a world that is only going to be more connected, what happens on one end of the planet is going to have an impact on the other and thus it’s good to remember that companies do business with other companies and what happens to the latter, could have an impact on the former.

Good luck, have fun and stay the course.

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