Friday, November 27, 2015

Stock Trading

I started doing some stock market trading in September.
I learned a lot about the stock market from the experience, and the good news is that I haven't lost any money yet, since I started buying at the perfect time! The market crashed in mid-August, so prices were low.

The main thing I learned is that trading on the stock market is not for me. There are basically two strategies for making a profit on the stock market. #1, Trade with huge amounts of money. #2, Do a huge amount of trading. If you can do BOTH strategies at the same time, it's the best recipe for success.

I can't do that. I don't have huge amounts of money, and I don't have the free time to do hundreds of trades per day. So those options are out.

Once I've sold my current stocks, I'm going to switch from short-term trading to long-term trading. That means I'll buy stocks, and I'll hold onto them for at least a year, before selling. If the price hasn't gone up enough, then I wait another year. This is a good general strategy, because stock prices usually go up from year to year. The price of EVERYTHING usually goes up. That's called "inflation".

The long-term stocks I have right now are Disney and Wells Fargo, because...I dunno. They both seem like companies which will exist and be successful, ten years from now. Unless there's a market crash or something, their stocks should be in good shape in the distant future.

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