What we should be supposed to know about Stock Market as an ABC level before enriching our pocket?

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Can you imagine how you could make money from Stock Market? Many people would have millions of opinions about their experiences, at this moment some of you probably think you are knowledgeable enough to get what you want at Market.

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However, it’s unpleasant to dampen the enthusiasm of your day-dream and confidences. Actually, there are few, very few men have much experience of the stock market and really become rich. It’s not easy to know completely the market to veterans, let alone greenhands.

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More preparations may shorten the journey where we go. As an ABC level, we should have a clear view on the shares we pick up, its’ company and values.

Each and every share has its own value and price, both of them are correlated to each other, the value of the share is unreachable but we know how much it is after calculating while the price is visible and much easier to know directly through our eyes. The price of the share is up and down around its inner value, meanwhile, other factors also will affect the moving of the prices. As long as the company runs regularly without bad news from inside company and negative feedback from the market, the price will maintain at a steady level at a short period. Of course, the black swan events break out unexpectedly and terribly impair the company’s image, directly pulling down the price even though its’ annual and quarter financial report wonderful, for example, the share Haitian Food at the late of Sept presented its bad influences, the price sharpen down expectedly due to its’ inappropriate reactions to the customers ’doubt on its chemical ingredients in the condiments and two different standards between mainland and oversea markets.

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In a word, the price of the share is lower or higher, often determined by three fields we need to keep in mind carefully, such as the financial condition, the business marketing expectation and the investors’ confidences

Usually, we prefer to buy at a lower and sell at a higher, that is where our profits come from. This is an ideal but more often situation we buy at a higher while sell at a lower, which make us money loss and earn it back more difficult.

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Since the stock market began several decades ago, it has experienced different periods like bear markets and bull markets, the whole trend of the market is to a up level thanks to economical development. The stock market seems like a ping pang jumping from one side to another one.

Now our country has moved into a new era, we are supposed to upgrade our knowledge level and expand our circle of viewpoints.

It is said that we cannot earn what we don’t know, if you do more preparations before footing on the stock market, you would become confidences in yourself and then begin to feel much easier like at home. Especially when you hand the share-deal rules and regulations fluently, the rich-day-dream will wave its hand toward you in the near future, if not, there is still a long way to go before reaching your goal.

Stay hunger stay foolish, we have no reason to doubt that it is wise to prepare and arm ourself with passion, love and knowledge.

WriterDawy