Anyone trying to learn everything about the stock markets from scratch without utilizing the wealth of knowledge available in the form of short term stock market courses, video tutorials, investors’ talks on the television or YouTube, digital or hard print books and case studies is merely jumping from one hoop to another. The search is going to last only as long as a novice investor has some courage or money left to continue making mistakes that could otherwise be avoided by learning from the learned.
Think & Act like a Winner
Novice traders get goose bumps each time they win. When they lose – they draw themselves to seclusion or worse, curse the stock market and get back to their old life. Smart investors think differently. They approach the subject with a winning mindset, get trained by the best and rely on expert opinion as well as their unique perspective on the stock market to make a decision.
Try to keep things Simple
Stock listed companies with deep economic moats should be your number one priority if you’re just setting out. If you want to decrease your odds of failure, it’s extremely important to invest with a long term goal and consider a minimum margin of safety as ‘must’ when you buy anything in the stock market.
Dream Big but don’t be Impatient
While it’s alright to dream big as a trader, it’s certainly foolish to be move forward hastily, and waste all the dream stuff before it could manifest. Get yourself enrolled into a short term trading course in Australia and learn the basics. Find someone who can discuss the current trends with you. Understand fundamental and technical analysis, one after another, in no particular order. But, under any circumstance, do not jump into the well until you’ve got a life jacket.
Invest More and Speculate Less
Great profits and losses – both are outcomes of speculating and not investing. So, keep in mind that you’ve ‘reasonable and well calculated’ day to day trading goals. This should save you from irrational trading behavior when you suddenly buy or sell shares, hoping to win a jackpot.
Hold on As long as it takes (if needed)
Australian stock market, or any stock market in the world for that matter, tends to be very volatile in the short term. If you consider the movement over a period of 2 or 3 days, it’s pretty easy to make out that reactions of the stock to various economic and developing political stories have been knee jerk. A smart investor, therefore, does not waste his time trying to predict short term movements. A winner company in the short term is someone who’s popular for that short span of time. A winner company in the long term is the one who’s got the real substance!
Do not participate in popularity contests like novice and average investors. A smart investor is someone who’s constantly learning even he or she has been trading various financial instruments for many years. If you are just beginning, you need to first get the right stock market education. If you’ve been trading for some time now, it’s time to find a mentor!