Stock market losses

Saving Yourself From a Bad Trade

With the stock market looking weaker by the day, and omens of recession coming from every corner of the media, its time to take a look at what to do if you get caught in a bad trade. No one wants to be stuck in a losing position. You might have guessed that the stock would go up, but jumped…

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Stock Trading Basics – The Mindset

Trading stocks is hard. You need to guess the right stock, the right price, and the right direction in order to make money. Options are even harder, because the contracts come with an expiration date before which your prediction must come true. That’s four obstacles you need to overcome in order to get ahead. In truth though, there is a…

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Stock Trading Basics – Risk Management

As discussed previously, when it comes to trading stocks the second most important thing after having a basic framework for understanding value and trends in the market is practicing sound risk management. This is because trading, like all human endeavors, does not follow any sort of strict physical laws. Not only is price influenced by emotions like fear, greed and…

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Dartboard

Stock Trading Basics – The Framework

There are three things that are crucial to financial independence and early retirement: making money, saving money, and managing investments.  Yet if there is one method of making money that is scorned and rarely talked about in the FIRE community it is stock trading.  Many people pore over different stock investment strategies, i.e. maximizing 401ks and IRAs, snowballing with dividend…

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