Stock market thoughts for traders in their 20s-30s with 10-100k capital
If you want to buy stocks always buy one which is already going up. Buy charts that are smiling at you.
If you want to reduce the necessary pain always try to make your own investment choices. Nobody knows anything about the future so you should just bet according to your level of understanding.
If you you don't absolutely love the craft of trading financial markets and you are attracted more on the money outcome, go for investing without leverage and long term plays. It is not worth the daily struggle and often the performance is even better.
There is no better way for lazy people to get rich as to buy shares in productive companies. Most people would never have the ability or nerve to run the business so why not to buy the best managers who like to do it for you.
Don't take your research too seriously. You can't really know most of the nuances inside any company or stock market. One human can change the course of things rather quickly, always faster in the negative way.
Don't get attached to any company, or investment. You may like it, and hold it through the storms no matter what. But that doesn't mean it is the ultimate answer. Be ready to get out of any position when better one reveal themselves.
Never ever think that you have some special competitive edge in trading stocks. If you are not doing it through combination math and physics. Never ever trust your mind, but use that tool to the fullest advantage. It is mostly wrong, that is a good starting point.
The best information service for trading stocks and investment is Twitter if you know who to follow and how to search. All are fortune tellers, but it is a great source for your investment inspiration and sentiment reading. Most paid services can't deliver more than free Twitter.
Start investing as soon as you have legal age to do it. You don't have huge sums of money at that point so there is very little to loose. If you invest even hundreds if not thousands yearly in small sums you get comfortable much easier and you grow experience with your wealth.
Investing in productive companies is one of very few ways how to become truly independent and owner of your time. With no appointment in your calendar. I am not saying that it is easy. I think trading is one of the hardest competitions on earth. But investing, even when throwing darts into stock market for 20 years,..I bet you have much better probability to become free of money worries than by pursuing most of common well paid career choices. Even with average salary if one has ability to put aside few hundreds a month.
Try investing in companies where you don't want to place any stop loss order as you know that any fluctuation will be met with buying later on. Until your fundamental investment cases change, or your understanding will lead you to realise that your investment is built just on faith.
Don't buy ETFs. Go for maximum power. Buy individual companies. The best one if you catch it during years will make up for all others in few years.
Don't give a shit about risk. If you trade stocks, not derivatives, you may only loose what you give. That gives you ground. And that is why go and invest where the risk is. You live now, rather take risks soon enough, you won't do it when 70 years old.
Do not diversify, until diversification is into industries where are the greatest opportunities and you want them all now. Diversification is just taking your life and money too seriously. If you have one great investment hypothesis then be 100% in it if you feel so.
It is a casino. But with much better odds than people tend to think compared to other games we play daily. Enjoy the play.
