The stock market or the act of investing is just like being a student. Your first day in school you feel nervous about everything in the school, so a first time investors might feel. You will be more apprehensive and anxious about making more. You might even make a mental picture of how your investment will make you a millionaire in the near future. Not all these hopes and dreams might turn out as imagined and you will wonder why others go to the market and make it whereas other hardly survives in the market.
What makes the difference?
The expert has acquired the knowledge about the behavior of the market. The inexperience does not have the technicalities to make big break on the exchanges. Amateur needs more knowledge about how the stock market works. Your deeper understanding of how the market works will help you know when to come into market.
The experts know when to buy and when to sell. They advice that always sell when everyone else is buying and sell when everybody buying. The reason been that the stock market is similar to real market we go to buy our wares. The invisible hand works perfectly on the stock exchanges, thus demand and supply. This principle is simple when more people are need of something the price of it goes up. Similarly, whenever more people are selling the same commodity’s price falls.
In addition to knowledge and experience, the experts have the money to buy at wholesale whereas the amateur buys at retail price. The amateurs only know of the stock exchange but the experts have several options. This is because the experts engage themselves in investments that will help them sell shares on the stock exchange whereas the amateur study how to buy better performing stock on the exchanges.
The experts employ the services of accountants, stockbrokers and lawyers to help them identify good investment whereas the amateur only know of the stockbroker. The experts use these professionals to help them explain any ambiguous terms given by any of them. The amateurs use the advice of the stockbroker as a gospel truth without comparing other brains.
The amateur always buy recommended stocks whereas the experts always analyze the stocks before making any purchase. They either hire stockbrokers to do the analysis or do it themselves.
We can only be like them if we continuously follow their steps and learn how they do their things. To be an expert you to put your hand on the wheel and drive it yourself, though you need professional advice but the outcomes are yours only.
By Asante Isaac
By Asante Isaac