The global stock market has been up and (mostly) down thanks in large part to the ongoing pandemic. To no one’s surprise, this pandemic triggered a global recession with Worldbank.org going as far as saying that “It could plunge the world into the worst recessions since World War 2.” Despite the uncertainty, we’ve found that rookie investors have been getting into the market thinking that they could take advantage of the sudden drops in stock prices.
Unfortunately, almost every beginner trader hasn’t done even a fraction of the research needed to make educated trades. Chances are, they’ll end up losing more than they make. We’re going to make sure you won’t end up like them.
After reading this post, you’ll be well-equipped with the proper knowledge in stock trading so you can take advantage of these “new normal” prices for when the market inevitably shoot back up when the economy recovers. With some experience, a few well-placed trades, a bit of luck, you could be looking at a major win that will take you one step closer towards financial freedom.
Legendary investor Warren Buffett defines investing as “the process of laying out money now to receive more money in the future.” The goal of investing is to put your money to work in one or more types of investment vehicles in the hopes of growing your money over time.
Stock trading is basically investing money you can afford to lose and have that money work for you. Investing your savings or money you know you will need in the near future will greatly affect your discipline and patience — leading to bad decisions.
With that in mind, let’s walk through other important factors you should keep in mind as an investor to maximize your returns while minimizing your