My first trade was back in college I had an account with one of the firms you see on tv for 7-10 dollar trades.
I wanted to really learn and the only way to really learn is to do something or live in that world. Having skin in the game teaches you lessons you can't learn from the stock market game (the fake money game). You feel the pain of the losses, the thrill of the gains, and the confusion from a market that does not react logically.
You have to deal with the psychological factors that can really lose you money. For example taking a loss just to get out of a stock because you are worried about your home, kids, ect. (never speculate with money you need in the next five years). Understand the risks and that being down is not always the end of the world and sometimes if you get out as soon as your down the price can come right back up and had you stayed in you would have made money not lost it. There are risks to holding bad trades too long as well. Also understand these are the risks of trading not investing.
Back to my trade. I bought Sirius shares at .69 a share. I didn't have much money at the time and I wanted to make a profit on the market recovery (this was a little after 2009). Now a penny stock is not a solid investment this trade was a bet in more ways than one and I'll get to that. Trading like this is very risky, investing on the other hand is mitigating that risk while also accomplishing goals (longer term goals usually) know the difference. I bought a couple hundred shares because I heard that Howard Stern had resigned and they had also signed 1 mil new subscribers. I was hoping that those were signs of hope for a company on the brink of being a pink sheet stock.
Don't do what I did I was willing to take a huge risk but at the time I didn't understand how risky that was. Don't take crazy risks with your money do your research. Knowing what to do takes time and it will be a work in progress on this blog.
Don't worry like everyone else I've learned the hard way in stocks but you take the good with the bad and don't get discouraged.
(I have not owned Sirius in years this was just to talk about my first experience)
I wanted to really learn and the only way to really learn is to do something or live in that world. Having skin in the game teaches you lessons you can't learn from the stock market game (the fake money game). You feel the pain of the losses, the thrill of the gains, and the confusion from a market that does not react logically.
You have to deal with the psychological factors that can really lose you money. For example taking a loss just to get out of a stock because you are worried about your home, kids, ect. (never speculate with money you need in the next five years). Understand the risks and that being down is not always the end of the world and sometimes if you get out as soon as your down the price can come right back up and had you stayed in you would have made money not lost it. There are risks to holding bad trades too long as well. Also understand these are the risks of trading not investing.
Back to my trade. I bought Sirius shares at .69 a share. I didn't have much money at the time and I wanted to make a profit on the market recovery (this was a little after 2009). Now a penny stock is not a solid investment this trade was a bet in more ways than one and I'll get to that. Trading like this is very risky, investing on the other hand is mitigating that risk while also accomplishing goals (longer term goals usually) know the difference. I bought a couple hundred shares because I heard that Howard Stern had resigned and they had also signed 1 mil new subscribers. I was hoping that those were signs of hope for a company on the brink of being a pink sheet stock.
Don't do what I did I was willing to take a huge risk but at the time I didn't understand how risky that was. Don't take crazy risks with your money do your research. Knowing what to do takes time and it will be a work in progress on this blog.
Don't worry like everyone else I've learned the hard way in stocks but you take the good with the bad and don't get discouraged.
(I have not owned Sirius in years this was just to talk about my first experience)
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