A Beginner’s Guide to the Stock Market Summary
A Beginner’s Guide to the Stock Market: Everything You Need to Start Making Money Today Learn to make money in the stock market, even if you’ve never traded before.
The stock market is the greatest opportunity machine ever created.
Are you ready to get your piece of it?
This book will teach you everything that you need to know to start making money in the stock market today.
Don’t gamble with your hard-earned money.
If you are going to make a lot of money, you need to know how the stock market really works.
You need to avoid the pitfalls and costly mistakes that beginners make.
And you need time-tested trading and investing strategies that actually work.
This book gives you everything that you will need.
It’s a simple road map that anyone can follow.
In this book, you will learn:
- How to grow your money the smart and easy way
- The best place to open up a brokerage account
- How to buy your first stock
- How to generate passive income in the stock market
- How to spot a stock that is about to explode higher
- How to trade momentum stocks
- Insider tricks used by professional traders
- The one thing you should never do when buying value stocks (don’t start investing until you read this)
- How to pick stocks like Warren Buffett
- How to create a secure financial future for you and your family
- And much, much more
Even if you know nothing about the stock market, this book will get you started investing and trading the right way.
Join the thousands of smart traders and investors who have profited from this ultimate guide to the stock market.
Even if you are a complete beginner, this book will have you trading stocks in no time.
About the Author
Matthew Kratter is the founder of Trader University, where he brings together the best stock trading strategies and investment techniques used by professional traders. He has more than 20 years of investing experience, including serving as a portfolio manager and investment committee member at Peter Thiel’s hedge fund Clarium.
When not writing, Matthew likes to follow the markets, go for long hikes with his kids, and play the guitar.
The best investment that you can ever make is an investment in your financial education.
And there is nothing more satisfying than learning how to extract money from the markets.
A Beginner’s Guide to the Stock Market Introduction
Excerpt. © Reprinted by permission. All rights reserved.
THE WORLD’S GREATEST OPPORTUNITY MACHINE
T he stock market is the greatest opportunity machine ever created.
I believe that everyone should have access to the stock market, not just the rich and privileged. That’s why I wrote this book.
There is a place for everyone and every strategy in the stock market. You can invest in stocks, holding them for many years and pocketing their dividends.
You can also trade stocks. You can day trade them, swing trade them, or short them (bet that a stock is going to go down instead of up). Don’t ever let anyone tell you what you can or cannot do with stocks. After reading this book, you may even come up with your own original way of profiting from the stock market that no one has ever used before .
In this book, I will give you an overview of many different approaches to the stock market. When you are first getting started, you should try out many different trading and investing strategies and see what works for you.
Each one of us has a different psychological make-up and approach to risk. Some love the quick dopamine hits that come from trading. Others just want to live their lives, and get rich slowly and quietly without any stress. There is room for both types of people in the stock market.
I would just urge you to learn how the stock market actually works. Many people never take the time to learn this. Many people like to yell at the stock market and tell it what to do.
The stock market is a complex emergent system. It won’t listen to you or to anyone else. It’s like the weather– it just does what it does, so you might as well get used to it. Take the time to learn how the stock market really works.
This is important because we live in a world driven by financial markets. If you can learn even a little bit about how they work, you can give yourself a huge advantage in life.
To repeat what I said at the beginning of this book:
The stock market is the greatest opportunity machine ever created.
Unfortunately, most people never learn how to harness its energy to create wealth.
You are clearly not like most people.
You purchased this book because something in the title, cover, or book description resonated with you.
I believe that you are destined for something greater. You know that trading and investing are skills that can actually be learned. And you are ready to put in the time and effort to make that happen. That makes you my ideal kind of reader. I want to help you to get rich.
The stock market has been really good to me and my family. I’m at the point where my biggest goal is to give back. That’s why for the last few years, I have been teaching others how to trade and invest through my books and courses at https://www.trader.university/ .
So read this book slowly, and let its lessons sink in. Read it again after you’ve had your first big losing trade. Or just read it whenever you need a little inspiration.
You can also subscribe to my YouTube channel and follow along as I tell you what I’m seeing in the markets every week:
I hope that you find this book helpful. I wrote it for the person who knows little or nothing about the stock market but has the intellectual curiosity and hunger to learn.
So let’s get started !
What exactly is a stock anyway?
A stock is a share of ownership in a company. When I buy 100 shares of McDonald’s, I become a partial owner of the company. I become a “shareholder.” If I had enough cash, I could simply buy up every share of McDonald’s, and then I would own the entire company. I would be the emperor of burgers.
Here’s another way to think about it. McDonald’s is like a pie that has 765,317,332 slices (shares outstanding). As I am typing these words, each of these slices is valued by the market at $187.62. That’s what we mean when we say that the stock is trading at 187.62.
Now let’s take the total number of slices and multiply it by the price per slice. We get about $143.58 billion. That’s the current total value of this “pie” that we call McDonald’s. Another word for this is “market cap” or “market capitalization.”
When we hear that Apple has become the biggest company in the world, we usually mean that it has the highest market cap. On 3 October 2018, Apple had a market cap of $1.103 trillion. Today (20 May 2019), its market cap is $840 billion.
A company’s stock price and market cap will move around a lot over time. This is because all of the world’s smartest minds (and computers) are constantly processing new information and collectively deciding what a company is worth. By buying or selling a company’s stock, these traders and investors push a stock’s price to where it should be trading based on all known information about the company.
Sometimes the market is temporarily wrong. In 1999, Pets.com was valued at about $300 million. A year later, it was valued at zero, as the company went out of business.
In 1996, Apple was valued at less than $3 billion. Then the company brought back Steve Jobs, who introduced the iPod and the iPhone. The price of Apple’s stock (and hence its market cap) first slowly (and then quickly) ramped up as the market began to figure out how successful and profitable these devices would be.
The stock market adjusts to new information. That is one thing that makes stocks wiggle around. Stocks also move based on the laws of supply and demand. If a lot of people want to buy a stock, the share price will move up. Maybe those people are overly optimistic, but their buying will still cause the stock to move up. Then if a very large investor comes in and starts to dump his stock, the price of the stock will move down.
Sometimes it is a mystery why a stock is trading up or down. Eventually it becomes apparent. Legendary hockey player Wayne Gretzky is famous for saying:
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A Beginner's Guide to the Stock Market PDF
|Posted on||May 21, 2019|
|Page Count||98 pages|
A Beginner's Guide to the Stock Market PDF Free Download - Epicpdf
A Beginner's Guide to the Stock Market: Everything You Need to Start Making Money Today Learn to make money in the stock market, even if you've never traded before.
Author: Matthew Kratter