Stock Market Tips and Rules

I'm sure you've all seen the movies, "Equity", "The Big Short", "Trading Places", "The Wolf of Wall Street", and "American Psycho"- all of them detailing the life on Wall Street. A big proponent of Wall Street is buying and selling stocks. Having personally invested in the stock market and taking genuine interest in fiance, here are some tips and rules to keep in mind:


  1. As John Huntsman Sr. says, "Buy low, sell high
    • Sounds easy, right? The main reason why people delve into the stock market is to make profit. Yes, it's all about that money, 'bout that money, 'bout that money (sing it to Meghan Trainor's "All About That Bass")
    • You always want to make profit, so you need to keep that goal in mind
    • Don't always assume that if you buy high, you will sell for even higher
  2. Buy at IPO and sell at least half within a week or two weeks.
    • A good example of this is Snap Inc., the company behind Snapchat.
    • They had in IPO of $17 when they started and that rose to $24 and eventually to $26.02
    • Within about five days, the value started dropping. 
    • If you had sold at least half of them you may have made profit, or at least broke even.
  3. Technology is where it's at
    • Literally. All of the tech companies or 'progressive' companies as I call them are best to be invested in. 
    • E-commerce is something to watch out for. The rise of Amazon is the perfect example.You never know what these companies will expand to. Heck, Amazon was an online book marketplace, and not they make the Alexa, Kindle Fire, Prime Video, etc.
    • Tesla is also a good example. A couple of years ago it was kind of staggering. Now, it's soaring, especially with all of the Model 3's in production. 
    • Nvidia is another clean example. 
  4. Don't spread yourself thin
    • Don't try to dabble a little bit in every company. 
    • Stick with a couple of companies and buy a fair amount of shares
  5. Never second guess yourself
    • What you chose is what you chose. Don't act like "I should've..."
  6. If high-level executives leave a company or there is a merger/acquisition, stay away.
    • There's usually some problem because why would a high level individual leave?
    • The value will move up and down and won't be stable when a merger happens. 
  7. Pay attention to the news and t.v. 
    • There will usually be reports or something that may affect the market fora certain industry. 
    • Look at Venezuela. It's a mess right now and since they control much of the oil industry, oil prices are unstable and companies like ExxonMobile or BP have unstable prices and can dip or rise a lot.
  8. Be patient
    • Don't give up just because a stock starts dipping for a few days. Wait about a week or so and if it still falls, you should pull out.
  9. Don't trust 'damaged' companies
    • Companies like Sears/KMart are going bankrupt soon and it's not worth it to invest, because in this case the downfall was predicted and we have all seen it.
    • The probability of greater returns is close to none.



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