“The average man doesn’t wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think.”
Jesse Livermore
There is a gazillion, newsletter, experts and self-proclaimed stock pick gurus. Who should you follow? You should invest in a good education first to be able to understand what drives stock market prices. It is helpful to follow some stock market newsletter and gurus (Suze Orman, Jim Cramer, Tom O’Brien, Gary Kaultbaum), but in the end, you should be able to make decisions on your own. Remember, it is still your money.
The stock market game is the only arena where anyone could go against the best and the brightest minds. Do you think you can be able to play ont he NBA of NFL right out of the street? Therefore, you need to understand the nuances that drive volume and stock market prices.
Action Exercise:
1. How many stock newsletters do you follow? Do you usually follow the recommendations found on them?
2. Do you research the stock picks that you find from the media?
Call to Action:
After completing the exercise above: Pick the top three sources of information about the stock market and drop the rest. Simplify and eliminate your poorest sources of stock market advice.
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I am a dad, professional engineer, MBA student, and a financial fanatic. I can help you make money in the stock market. I use Fibonacci techniques for retracements and targets, technical analysis, some little fundamental analysis, and automated systems trading. I also trade options. In addition, I use CANSLIM to get neat growth stock ideas. No fluff and no BS.
If you want to discuss stocks, options or personal finance you are welcome to follow me in Twitter (@smarkethacker) or drop me a line to smh@stockmarkethacker.com. In addition, consider subscribing to my RSS feed located in the top right hand corner.
It’s scary to make such a potentially huge decision, especially for the “average” man or woman, as that quote states. I’m in that average category, and it’s very tempting to let someone who knows what they are talking about make decisions for me. So I can understand how easily the average person could fall into the “do it all for me” trap. The average person feels that even their own research might not be enough to make a wise decision.
.-= Donna´s last blog ..The Truth About Working From Home =-.
Thanks Donna for posting. The Stock Market can be intimidating for most people. However, I will stress that people at least need to understand the basics. At least that is my mission, to teach people how to fish and not give them the fish. If the people then decide to outsource to a professional fisher, then that is A-Ok.
One of my favorite passages that illustrate the perceptions of intelligence and competence comes from the book Outliers by Malcolm Gladwell. He asks the readers who is most intelligent: a person with high IQ that has a broken car or the auto mechanic that stops to help him.