Luck and knowledge in stock market investment

scheng1 By scheng1, 12th Jun 2010 | Follow this author | RSS Feed
Posted in Wikinut>Money>Investing

There is no doubt you need knowledge in stock market investment.

There are many ways to gain knowledge about stock market investment. You can read books about stock market investment. You can read books about Warren Buffett and his concept about stock market investment.

Luck and knowledge in stock market investment

You can take a short course in accounting and corporate finance so that you can read the financial report. You can take a college degree in applied finance to learn more about stock market investment.

You can learn to use analyst reports to select stock, and decide what to buy and when to buy.

However, the best knowledge comes from your personal experience in stock market investment. Only when you put in a few hundred dollars into stock market investment, then the text book knowledge becomes practical knowledge.

However, there is an element of luck in stock market investment.

There are times when every educated investor makes mistake in judgment, and the fools win. There are times when the speculators who do not follow the wise rules in stock market investment make tons of money.

Luck is important in stock market investment.

The best luck in stock market investment is to sell at the peak, and buy at the bottom.
Hardly anyone is willing to sell at the peak. They are all hoping for the stock market to go even higher. That is why they miss the peak, and make lesser money from stock market investment.

Many wise investors do not buy at the bottom as well. They do not have the courage to sink money into stock market investment, since they foresee something worse than the worst.

That is why luck does play a part in stock market investment. However, do not rely solely on your luck. Luck can run out. However, knowledge about stock market investment stays with you forever.

Aim to learn more about stock market investment, and learn to make wise judgment in stock market investment. Learn to believe in your logical thinking, and sink money into stock market investment when everyone is running away from it.

You will get rich when you have a solid foundation in stock market investment, and you have acted on it.

About me:

Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. Personal Finance is about money, from making money to investing money

Tags

Stock Market, Stock Market Investment, Stock Market Trading, Stock Trading

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author avatar scheng1
About me:

Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. [link=http://howhealthyisyourpersonalfina...(more)

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