Stock market investment guide pdf
But keep this in mind: Many stock experts offer advice. But few of them deliver investing tips as straightforward, practical and profitable as we do in this guide — all in plain English, without jargon and without talking down to the new investor. But right now I want to promise you this. As I said, this guide shows you how to profit from being a contrarian. Much of the advice it offers seems counter-intuitive, or the opposite of what you may have always thought about the market and investors.
An investor will read various articles about certain stocks, page through a few annual reports and study earnings estimates. After what usually turns out to be many hours of research, then decides which stocks to buy.
He then commits his hard-earned money to these stocks, feeling confident maybe even excited about his prospects for making money in the stock market.
Naturally, not all of these investments go the right way. Some of the stocks he had the highest hopes for drop in price right after his initial commitment. Still brimming with confidence, the investor sticks with these losers, confident the decline is just temporary.
Weeks pass, but these poor performers do not rebound; in fact, they sink to even lower levels. The investor tells himself that the stocks have become bargains. After all, if they were good buys when he bought them, they must be even better buys at these lower prices. Thus, he continues to hold on and perhaps buys even more of these stocks, hoping they will return to their previous highs. On the other side of the ledger, the investor watches some of his choice selections soar from the get-go.
Feeling satisfied, he takes his wife out to dinner, and tells her how good he is at making money in the stock market. What do we think about this? We know, from our 45 years of experience as stock advisors, that this investor has just done exactly the opposite of what he should have done.
He has hung on, against all odds, to his losers, and sold his winners. This might be a face-palm moment for you. But if you want to avoid making mistakes that can cost you thousands — and find out exactly what that investor should have done instead — you should be reading this guide right now!
However, once you read through it, it will all start to make sense. But bear with me. The following lessons, activities, resources, and videos provide a basic understanding of stocks and the market. Advanced students learn how buying on margin and selling short can increase potential gains on stock purchases, but at the risk of greater potential losses.
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