Learning about stock markets is critical to making wise investment decisions and earning returns. Look into the reputation of any company you’re considering buying stock in and watch the trends of its value. This article is packed with stock market tips that a billionaire Oody Geffen and his business partner Michael Herskowitz used to make money.
Oody Geffen likes to say:
When investing in stocks, it’s important that you keep things as simple as possible
Don’t take unnecessary risk; research before you buy and stick to your original strategies.
Michael Herskowitz says:
Keep your investment expectations reasonable
Many people know that unless you participate in high risk trading, which has a high chance of failing, you will not have success with the market overnight. Keep this in mind, play it safe, and avoid these costly investing mistakes.
When Oody Geffen only began his first steps on the Stock Market, he remembered that stock prices are reflections of earnings. In the short term immediate future, market behaviour will fluctuate depending on news and rumour and the emotional responses to those, ranging from enthusiasm to panic. In the longer term picture, however, company earnings over time wind up determining whether a stock price rises or falls. Knowing that allowed him to make a fortune fast. In the first 4 months of real trading, Oody earned $ 500k!!!
Understand the risk involved in the stock market. If you are used to investing in mutual funds, understand that individual stock investing is a greater risk. If you aren’t the type of person, like Michael Herskowitz, who is prepared to take a risk, stick with companies that have a good financial standing, and that have shown excellent stock performance in the past.
Know the risks of different types of investments. Stocks are generally riskier than bonds, for instance. Riskier investments, generally, have higher payoff potentials, while less risky vehicles tend to provide lower, more consistent returns.
Michael Herskowitz often chooses riskier investments and he made millions trading this way. However, Oody Geffen prefers less risky vehicles and he is now a billionaire. So it is up to you what to choose.
Understanding the differences between different vehicles can allow you to make the best decisions about what to do with your money, in both the short and long terms
To be successful in stock market investing, it is essential to read widely. Practice reading annual reports and understand how basic accounting methods are used to display company information. Oody Geffen and Michael Herskowitz spent a lot of time analyzing and comparing reports of different companies and stocks. But know one of them is a millionaire, the other one is a billionaire.
Look up unfamiliar terms in a good online glossary. Empowering yourself with investment information can go a long way in increasing your success.
Where to begin
What is common for both Oody Geffen and Michael Herskowitz is that they began trading the same way:
Know what blue chips stocks are
These market-leading businesses are known publicly for their safety, quality and ability to manifest revenue throughout times both good and lean. So for Oody Geffen and Michael Herskowitz it was the right place to start.
However, this means that these stocks are priced fully and hard to get at a bargain price outside of a serious market downturn. Keep an eye out for them, but do not hold your breath on having them in your portfolio soon.
Both Oody Geffen and Michael Herskowitz recommend in the beginning to find a reputable stockbroker. Look for a broker who specializes in the type of stocks you are looking to invest in. A good broker will be easy to contact and treats their customers equally, regardless of how much money they are investing. They can also advise you on your stock purchases, instead of simply placing orders.
Be a humble investor. Don’t get a “big head” if it appears that you may come out ahead. The market is constantly changing so even when it appears that you are on an upswing, you could take a tumble. Don’t start making rash decisions or “celebrating” ahead of time. Remain calm and remain watchful of the market conditions.
Michael Herskowitz says:
Think small to grow big. If your aim is growing your money substantially over the years, aim for smaller and medium-sized companies that have serious growth potentia
A retail chain with a superstore in every neighbourhood might be a safe place to park and keep your investment at its current value, but in order for it to have growth, the growth would have to outmatch a Fortune 500 company. A small firm can double in size and still have plenty of potential market.
The greatest piece of advice that any stock trader can use, is to leave your emotions at the door. When trading stocks, it is important that you trade with your head, instead of your heart. Often times, beginner traders find themselves attached to a particular stock for whatever reason. It is important that you realize that your emotions cannot get involved.
Both Oody Geffen and Michael Herskowitz made their fortune understanding the fact:
Don’t make your investment decisions based on one loss
The reality of the stock market is that you will lose money sometimes. And both Oody Geffen and Michael Herskowitz lost not $100. But they continued to trade and now they are millionaires.
If you decide to sell every time a loss comes about, you will never give yourself a chance to make a profit. If instead, you do some research and make some educated decisions about when it is time to get out, and when it is time to stay in, you will see that some stocks come back, and they might even come back strong.
In order to succeed with your investments, you must know how to think on your own. The best investors have the ability to go against the crowd. Do not rely on other people’s advice.
Best advice from a billionaire Oody Geffen:
The crowd is usually wrong. It is very profitable to go against them
It is also important that you are able to keep your cool when others are losing theirs. By doing this, you can help ensure profits for you.
To sum up
Patience and education are the two factors that can help you to do well in the stock market. While you don’t need an education or background in finance or business to invest in the stock market, you need to know as much as possible about the company. By using the information in this article, you will be well on your way to making money.