Intuitive Investor*Journal Log*

Discussion in 'Journals' started by TradingBillions, Feb 15, 2007.

  1. The Intuitive Beginning Investor or Trader


    Hi, my name is Jarett Casesa and I will provide you with tips today on how to be an Intuitive money making Investor or Trader in the Stock Market. If you have questions right away, feel free to e-mail me at my e-mail address below.

    What is the Stock Market? Many people still to this day may not have a solid definition of what the stock market really is. Here's my take on what the stock market is and what it is not. Stock market is pretty much or soon to be an all virtual marketplace where you can buy and sell shares(ownership of companies) on a real time basis. Now, for you new commers, you may ask, why do I need to know about a stock market? The answer is this simple: If you know what the stock market is, how it works, why it works, and who you are as an investor or trader, you have the potential to make a lot of money. Of course you need money to start out with first. Convinced? Most likely not. The stock market is definatly not for everyone, and if you can't bare to sit by yourself or with a team in front of a computer monitor practically all day and study charts, you are going to have a real bad time trading. Now if you are an investor, you do not need to sit at the computer all day. The difference between a trader and an investor is simple. Traders go in and out of stocks(buy and sell) much more often than investors do. For example: Timo lives the stock market from 9:30 a.m(open) to 4:00 p.m(close). He sits at the screen watching charts on a 1 minute interval and waits patiently for the right time to put his money into one position. He then must wait until the right time to exit the position as well. If you can bare to be like Timo, you will have a great time being in the market. However, if you want to make money for the long term(possibly greater appreciation than being a trader) you must send your money into a few stocks and just hold them for a very long time(the more conservative approach). I personally, am a trader. I swear by my charts, and want to learn the different charting patterns every day. Something of which I will get into later. So, you might be thinking that this stock thing might be too hard for you to learn. Well, understand this: When you look at a task as being hard or difficult, your concious perception is being altered. The task at hand may be as simple as learning the ABC's, however, if you look at learning ABC's as a hard task, believe me, it will be a hard task. From now on and before you go into the markets, look at learning the markets as being an easy challenge. Your life will be a lot easier and there will be hardly any pressure on you.

    The different indexes: There are many different indexes in the markets. The major indexes are the New York Stock Exchange, Dow Jones Industrial Average(Oldest Index Around), the Nasdaq, and the S&P 500. All of these indexes are pretty much America's major players. So, when you decide to put your money inside a stock to make possibly more money, you will have to look to these indexes as kind of the father of your stocks. The New York Stock exchange is one of the biggest exchanges in the world and most well known. It hosts many of the regular cyclical companies and more on this exchange. Most of your stocks you will see listed on the NYSE are usually American based. Next we have the Dow Jones Industrial Average(DJIA) which is the 30 top picked stocks in the industry that are best performing over many many years like 3M, Boeing, Microsoft, etc. These stocks are mostly blue chip, which means they are very high quality and most likely won't go bankrupt anytime soon. The Nasdaq is the technology index. This is where the tech stocks lye. The semiconductor, computer companies, service businesses, all lye within the NASDAQ. Lastly, the S&P500 also known as the Standard and Poors 500. The S&P 500 is where 500 mostly American stocks lye and you can use this index as a benchmark to see how well one of your stocks is performing.

    Now that you know the basics of why people invest and where people invest, you can now take time to think about what your goals are and what you actually want to achieve in the stock market if even the stock market is for you. There are many other markets like the Futures market, options, forex currencies, and more that you can join. I really recommend you stick with the stock market as it is the best way to learn about the economy, money flow, and how the world works through a very economic standpoint. You will also become a very prudent investor once you master your performance in the general stock exchange.

    After reading this, I have very important steps for you to take if you want to make it big in the market like I have been doing so far with only $10,000 that I borrowed to start with.

    Step 1: Learn what market you want to invest or trade in. Contact me for help if needed.
    Step 2: Once you find your market, spend one week tracking the market's trend and progress. For beginners, watch CNBC and see how they are rating the market's strength.
    Step 3: After evaluating the market you're in, goto finance.yahoo.com and look for some stocks. Pick some of your favorite companies, go do some deep searches and find small or mid cap companies, just find some stocks.
    Step 4: Once you find the stock(s) you want pull up a chart on finance.yahoo.com and study the stock's trend direction. If the stock looks like it is going down in the trend but looks like it is beginning to rise, paper trade 100-1000 shares on your virtual trading platform which can be found off google. Look for up trends(meaning stock charts that look like they go up every month) As these are usually the most profitable stocks. Do a 6 month chart and a 1 year chart to view the trends.
    Step 5: Wait 2-3 weeks and e-mail me on the result of your stock did. I'm very curious to know! Once you develop a good system(I'll teach you a bit about support and resistance personally, I will release a journal entry on S&R lines.) You can then start trading the market for real time.

    Enjoy!