Many people are so blinded by the potential of an action that they do not consider the risk. Trading Stock is a risky business. Even secure investments have some risk. It is a fact that the more risky investments have a higher potential increase. It is also a fact that the more risky investments have a greater loss.
This post is not to push you away from trading. I am writing to make sure that you are aware. Although there are many laws, fines and regulations, there's still a lot of funny business in trading. A popular misconception is that the company's performance determines the value of the stock. Get this bullshit out of your head. The mood and beliefs of traders dictate the value of specific stocks. When the company files, the numbers influence the minds of investors, but it is ultimately the mood of that individual trader buying, selling and setting their price that determine the value of the stock.
There are many blogs, news, reports, and whatever else you want to call them on the internet. Some are straight forward. Some are straight bullshit. It's becoming hard to distinguish what is good, when the evil is so convincing. There are many ways to make money in the trading industry. Of course, buying and selling is included in this list. There are also many schemes in the business. One of most popular is called the Pump and Dump that I will explain in a later post. Writers, with a strong influence on novice investors, are also being paid tens of thousands to give inaccurate reports to the public.
All in all, there is a lot of money that can be made. I will continue to put important news feeds and reports in front of you to help you make great decisions, but always follow your heart. Don't do it because I said it was a good investment or because someone else said it was good investment. My objective is to provide information for you to make the decision yourself.
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