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share market learning for beginners - shares market basics beginners ?
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| share market learning for beginners - shares market basics beginners |
share market learning for beginners - shares market basics beginners
As stock market analysts we have over 65 years of experience...that means we have seen four recessions, several market sell-offs and one near depression. That is a lot to mumble into one sentence we think, but its also made us realize there is lots that can happen to the market in the years ahead!
We have had the luck to have learned much over the years from some of the greatest investors and economists on the planet, so what we want to do is share these tips from some of the richest and smartest investors to have ever lived in our time era. Please be sure to read the entire post, because there are some of the best ideas and tips to help you make money on the stock market in the years ahead.
Beware of the stock markets 'animal spirits'
The markets are often more animated by "animal spirits" which is their tone or emotional state, more than the hard core earnings and dividends. We learnt this from the great economist John Maynard Keynes, who has made literally millions from his investments...
While some people hate him, and demonize him, we have to tell you he was one of the greatest investors of all time, making millions between World War I and the end of World War II. It was a great time to be alive he said.
"It's nearly impossible to know the best time to buy and sell. More often than not, you'll get burned."
Keynes pioneered early forms of value stock picking and behavioral finance. Where I think he excelled was his ability to key into the "emotion" or "emotional state" of the stock market and how these were two powerful drivers of bubbles and crashes. If you keep that in mind, you can avoid loading up on single stocks or funds at the wrong time.
Avoid the market timing temptation
As We have learned from loading up on tech stocks in 1997-99, you think you are king of the hill and nothing can touch you, its magic! WRONG! when in fact you're investing at the crest of the market. We can't know enough just by studying the upward momentum of earnings, technical analysis and stock prices. All these gurus who say you can time the market perfectly forget the market is just a beast unto itself. There is not way you can buy at the bottom and then sell at the top. What you are trying to do is catch the bit in between!
Some investors know more than others (often with inside information) and can trade at lightning speed with algorithms that can anticipate and exploit market swings. You don't stand a chance against the robots. The algo's and computer reliance for big firms who can invest big money to try and beat the market is causing havoc and wild swings on the stock market. It's nearly impossible to know the best time to buy and sell. More often than not, you'll get burned.
We talked with Nobel Prize winner Robert Shiller on many occasions, who authored the classic Irrational Exuberance. In doing so, we also discovered that "narrative economics" – the contemporary popular belief about market emotional behavior -- can often mislead us. So this is what investor so often get wrong!, so you must ignore the "story" about stocks or why the market is up or down. Investing for the long term is usually the better choice. Then you do not have to be tied to your screen for 12 hours a day, and lose sleep.
The market is nearly impossible to beat
After hearing University of Chicago Nobelist Eugene Fama, the father of the Efficient Market Theory, speak several times, I'm convinced that I will never have more knowledge than the market as a whole. its constantly changing, and the environment is just too erratic for us to predict the future. And if we invested with a winning manager? It's unlikely he or she could continue the streak, or that the performance was due to anything but luck in Fama's view, which is supported by decades of research.
So how could we ever compete with bigger institutions, or hedge funds hiring math PhDs to write trading programs, and high-frequency trading houses? Crazy right?
But this is what investors often overlook.
Cost matters
We learned this from Vanguard's Jack Bogle, whom I've interviewed and quoted countless times over the years. The cost of your investments matter most he said. The lower the cost of managing that money—the less you pay middlemen—the more you can sock away over time.
Why pay 1 percent when you can pay 0.10 percent (or less) annually for a fund that holds most major global stocks? That's why its very smart to invest in ultra-low cost index funds though Fidelity, iShares (Blackrock), SPDRs (State Street), Schwab and Vanguard. Math matters. You can't beat the arithmetic of saving more by paying exuberant fees, and fund hedge funds wine and caviar lifestyles.
Panic is not protection
You must realise that in the 2008 crash many people got wiped out, some even lost up to 70 percent on paper. We know that is horrific. But the smart peole waited until 2009 and bought, and since then made off like bandits.
Smart investor re balanced to about half bonds/half stocks, which also saved them. You must change your strategy when market conditions change, or you will get eaten alive.
You can triple your money over the span of 9-10 years: and then keep compounding those profits. The results can be quite dramatic.
Our investing objective is incredibly simple: To worry less about money and be able to reap the best investment of all: More personal time to enjoy life, spend time with the ones you love, and do things that make me feel alive and free. That is what life is all about. To me, that's the ultimate purpose making the right decisions and becoming an astute investor.
The other side of this, is to get training from those in the know, and who understand all these specific strategies and are in a positions you want to be in. You must look to those who are better at investing than you and look to the strategies they use. Not only will you see what you are doing wrong, it can put you in a pretty good spot faster than you think. Doing this can make you money and it can literally create millions of dollars for you. Finding a mentor might be easier said than done, but once you find the right person, the world will open up for you and you have an edge over all the other traders out there investing each week in the stock markets. Think of it as like being a ticket to get 3-4 steps of other investors out there who think they know what they are doing, when they are actually are losing money and are not in control at all.
As stock market analysts we have over 65 years of experience...that means we have seen four recessions, several market sell-offs and one near depression. That is a lot to mumble into one sentence we think, but its also made us realize there is lots that can happen to the market in the years ahead!
We have had the luck to have learned much over the years from some of the greatest investors and economists on the planet, so what we want to do is share these tips from some of the richest and smartest investors to have ever lived in our time era. Please be sure to read the entire post, because there are some of the best ideas and tips to help you make money on the stock market in the years ahead.
Beware of the stock markets 'animal spirits'
The markets are often more animated by "animal spirits" which is their tone or emotional state, more than the hard core earnings and dividends. We learnt this from the great economist John Maynard Keynes, who has made literally millions from his investments...
While some people hate him, and demonize him, we have to tell you he was one of the greatest investors of all time, making millions between World War I and the end of World War II. It was a great time to be alive he said.
"It's nearly impossible to know the best time to buy and sell. More often than not, you'll get burned."
Keynes pioneered early forms of value stock picking and behavioral finance. Where I think he excelled was his ability to key into the "emotion" or "emotional state" of the stock market and how these were two powerful drivers of bubbles and crashes. If you keep that in mind, you can avoid loading up on single stocks or funds at the wrong time.
Avoid the market timing temptation
As We have learned from loading up on tech stocks in 1997-99, you think you are king of the hill and nothing can touch you, its magic! WRONG! when in fact you're investing at the crest of the market. We can't know enough just by studying the upward momentum of earnings, technical analysis and stock prices. All these gurus who say you can time the market perfectly forget the market is just a beast unto itself. There is not way you can buy at the bottom and then sell at the top. What you are trying to do is catch the bit in between!
Some investors know more than others (often with inside information) and can trade at lightning speed with algorithms that can anticipate and exploit market swings. You don't stand a chance against the robots. The algo's and computer reliance for big firms who can invest big money to try and beat the market is causing havoc and wild swings on the stock market. It's nearly impossible to know the best time to buy and sell. More often than not, you'll get burned.
We talked with Nobel Prize winner Robert Shiller on many occasions, who authored the classic Irrational Exuberance. In doing so, we also discovered that "narrative economics" – the contemporary popular belief about market emotional behavior -- can often mislead us. So this is what investor so often get wrong!, so you must ignore the "story" about stocks or why the market is up or down. Investing for the long term is usually the better choice. Then you do not have to be tied to your screen for 12 hours a day, and lose sleep.
The market is nearly impossible to beat
After hearing University of Chicago Nobelist Eugene Fama, the father of the Efficient Market Theory, speak several times, I'm convinced that I will never have more knowledge than the market as a whole. its constantly changing, and the environment is just too erratic for us to predict the future. And if we invested with a winning manager? It's unlikely he or she could continue the streak, or that the performance was due to anything but luck in Fama's view, which is supported by decades of research.
So how could we ever compete with bigger institutions, or hedge funds hiring math PhDs to write trading programs, and high-frequency trading houses? Crazy right?
But this is what investors often overlook.
Cost matters
We learned this from Vanguard's Jack Bogle, whom I've interviewed and quoted countless times over the years. The cost of your investments matter most he said. The lower the cost of managing that money—the less you pay middlemen—the more you can sock away over time.
Why pay 1 percent when you can pay 0.10 percent (or less) annually for a fund that holds most major global stocks? That's why its very smart to invest in ultra-low cost index funds though Fidelity, iShares (Blackrock), SPDRs (State Street), Schwab and Vanguard. Math matters. You can't beat the arithmetic of saving more by paying exuberant fees, and fund hedge funds wine and caviar lifestyles.
Panic is not protection
You must realise that in the 2008 crash many people got wiped out, some even lost up to 70 percent on paper. We know that is horrific. But the smart peole waited until 2009 and bought, and since then made off like bandits.
Smart investor re balanced to about half bonds/half stocks, which also saved them. You must change your strategy when market conditions change, or you will get eaten alive.
You can triple your money over the span of 9-10 years: and then keep compounding those profits. The results can be quite dramatic.
Our investing objective is incredibly simple: To worry less about money and be able to reap the best investment of all: More personal time to enjoy life, spend time with the ones you love, and do things that make me feel alive and free. That is what life is all about. To me, that's the ultimate purpose making the right decisions and becoming an astute investor.
The other side of this, is to get training from those in the know, and who understand all these specific strategies and are in a positions you want to be in. You must look to those who are better at investing than you and look to the strategies they use. Not only will you see what you are doing wrong, it can put you in a pretty good spot faster than you think. Doing this can make you money and it can literally create millions of dollars for you. Finding a mentor might be easier said than done, but once you find the right person, the world will open up for you and you have an edge over all the other traders out there investing each week in the stock markets. Think of it as like being a ticket to get 3-4 steps of other investors out there who think they know what they are doing, when they are actually are losing money and are not in control at all.
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