Everyone talks about stock market investing, and more often than not it’s a story about people losing money. But did these losers really know how to invest in the stock market? Or did they simply just “have a go”, hoping to strike it rich without any form of stock market education and end up losing their hard earned dollars?
While it’s a fact that most people gamble on the stock market just like they gamble on lottery tickets and in casino games, it is also a fact that wise stock market investing is less risky than setting up a classic business.
According to banks’ statistical data most new business owners fail in setting up a successful business, and they fail catastrophically! They underestimate local competition, the market and they don’t understand what the customer wants.
And then if you go to apply for a job in these doomed businesses they look down on you, asking you if you have adequate experience and academic education, they talk to you as if they won the ‘Nobel prize’ of entrepreneurship and you are there to gain experience and learn from them… If you really want to learn about investing in the stock market like a real, determined to win trader, then you have to give up the notion that someone out there absolutely knows how to invest in the stock market.
The Difference Of Opinion
Much like those joker business people who lack original thinking, there are even university educated economists who fail catastrophically in their effort to predict stock market movement, just watch Bloomberg or CNBC for a while; you will never see 2 economists agree on market direction. But there you go! It is this difference of opinion that makes people want to exchange stocks down at the stock market trading floor.
If you really desire to become far-sighted and learn how to invest in the stock market successfully, you have to stop trusting even people who are older and supposedly wiser, and even economists who mention fancy financial terms in the conversation.
I once met a branch manager of a large insurance company, he was a 55 year old, stubborn man who did not want his ideas to be challenged in any way, he was completely unaware of the Options derivatives market, saying that it was impossible to profit from falling stocks, and that the stock market goes up when the economy is doing bad. We agreed to disagree, but it was tough to listen to an ignorant salaried employee telling me how to invest in the stock market.
Street Savvy Vs University Education
The well educated are always at disadvantage when it comes to thinking how to make money and yes, how to invest in the stock market, but let me give you a real life example…
When Aristotle Onassis landed in Argentina as a poor economic immigrant he was completely broke, but he spoke few foreign languages. As soon as he got a job as a switch board operator at the local phone company he started overhearing commodity merchants who were involved in the commodity import – export business in the United States, Ari immediately figured out the trend of these commodities and made his first stock investments with money borrowed from a friend.
Imagine how confident he felt to put money at risk, money that wasn’t his. His investment made a huge profit. So instead of listening to so called stock brokers, market experts and economists, to whom anyone can sit and listen for hours, Ari spotted the gravity, the buying power of those commodity traders which would inevitably influence commodity prices.
If you really want to know how to invest in the stock market and make substantial profits, you should follow in the footsteps of the large traders and investors who make markets move. Getting a higher education in economics certainly will not help, most brilliant university graduates end up working at successful companies created by savvy, university dropouts, just look at Microsoft or Dell for excellent examples of this theory.