Investing In The Stockmarket

The term Stockmarket is a concept for the mechanism that enables the buying and selling (trading) of the shares and stocks of publicly held companies, other securities and derivatives. The stocks and shares of these companies are listed on the stock exchanges, which are entities (either mutual organizations or corporations) specialized in the business of bringing buyers and sellers of stocks and securities together.

Most modern day trading, as opposed to the open-and-cry system of the past is now done via electronic exchanges where the buying and selling occurs through on-line real-time matching of orders placed by buyers and sellers.

There are many different ways for investing in the Stockmarket, including income or capital growth, technical analysis or charting. Better still there are strategies that do not require complicated charts. All you need is a ruler and pencil, and the right publication to select high-performing companies. Something a seven year-old can be taught to do. If you look well enough, you are sure to find a method that suits your personal needs and goals.

You can go for a hands-on or a hands-off approach that can take anything from an hour per week, through an hour per day to an hour per year. You can go for a highly risky strategy to a medium to low risk strategy. Consider investing for the long term instead of short term.

A lot of people are afraid to put their money in the Stockmarket because they are highly concerned about risk. What they forget is: Risk is a factor of life, and risk can be managed and highly reduced.

Most people tend to seek the advice of financial advisors without realising that financial advisors mostly earn commissions on recommending and selling specific investments. It goes without saying that they will be more interested in selling investments that will ultimately make them more money.

Hence, it is not the smartest move to let someone else invest your hard-earned money for you, especially when you realise that learning about investments is not exactly rocket science. Ask yourself this question: Who is most likely going to look after your money better, you or someone else?

Further more, most of these advisors are not wealthy individuals themselves neither are they successful investors. So it is very much the case of 'the blind leading the blind'. In many cases, the only difference between you and the financial advisor is just a licence to advise on investments, sadly without the need to be investors themselves. As useful as the licence might be to financial advisors, you will be unlikely to find a millionaire investor with a licence, or a financially independent financial advisor.

What you want is to learn about investing from people who have a success record of investments themselves. People who can teach you from their personal real life experiences! People who can teach YOU to fish, and not fish for you. Theory is great, but what will make you rich is real-life application.

Learning to invest in the Stockmarket might well be the smartest move you ever made in terms of managing your money better to ensure that it is working for you. Working harder will not make you wealthy! Making more money will not make you wealthy! Investing your surplus money is the key to wealth.

The Stockmarket & The Six Blind Men

The Stockmarket reminds us of the story of 'The Six Blind Men And The Elephant' about how our perceptions can lead to totally different realities.

Once upon a time, there were six blind men who wanted to learn what an elephant looked like, since none had ever seen one before. So they took a trip to the forest to discover what an elephant really was like.

The first blind man approached the elephant from its firm flat broadside and bumped his head. He declared to his friends that, "The elephant is just like a wall,"

The second blind man reached out and touched one of the elephant's tusks and said, "No, this is round and smooth and sharp - the elephant is like a spear."

Intrigued, the third blind man stepped up to the elephant and touched its trunk. "Well, I can't agree with either of you; I feel a squirming writhing thing - surely the elephant is just like a snake."

The fourth blind man was of course by now quite puzzled. So he reached out, and hugged the elephant's leg. "You are all talking complete nonsense," he said, "because clearly the elephant is just like a tree."

Utterly confused, the fifth blind man stepped forward and caught one of the elephant's ears. "You must all be mad - an elephant is exactly like a fan."

The sixth man approached, and, holding the elephant's tail, disagreed. "It's nothing like any of you say - the elephant is just like a rope."

Thus the six blind men all perceived one aspect of the elephant and were each right in their own way, but none of them knew what the whole elephant really looked like.

The moral: Depending on one's perspective reality may be experienced and viewed differently.

The Stockmarket often poses itself like the elephant to many investors. Like the six blind men and the elephant there are differing predictions of what the market will do, and how to invest in it, whether you do or not at all.

But the market seems willing to accommodate the wide variety of even opposing beliefs. Despite the wide array of opinions on the market, we still find investors with contrasting opinions making money on the market at the same time while others make losses.

There's one thing all investors have in common, and the only reason why anyone might invest in the market. That is to make money.

So the most important thing for you is to ensure that your perspective of the market is serving you.

If it is not, then look for the perspective that will bring you the positive outcomes you want. The best and fastest way to do this is to find someone who has got it right and model what they have done. Find out what their perspective is, what their method and strategies are and follow this until you achieve success.