What Does “Beating Wall Street” Mean?
When I say “Beating Wall Street”, I mean making consistent money in the market. You may have heard that “more people lose than win” on Wall Street, but who knows the actual statistics. In my opinion, this is because the majority of people trading simply don’t know what they’re doing: They make investments blindly based on hunches (They don’t analyze any data before making a decision)…or decide to buy based solely on price (“This stock is only $0.25, I can buy 100,000 shares!”)…Or they read 1 positive article that touted the stock so they fell in love with it (But they didn’t consider who wrote the article..A credible source? Or Joe Schmo?)…
This is why analyzing trades correctly and following a proven strategy are so important when it comes to Beating Wall Street. Those who choose not to educate themselves are simply padding the pockets of those who choose to be knowledgeable.
Check out the Following Pages for Help Beating Wall Street:
Jason Bond Picks Review – Best Swing Trading System
What is FINVIZ? A Dynamic Stock Charting Software
Stock Analysis in 4 Steps
Stock Trading Tips, Crush your Competition
Short Background of Wall Street:
To gain some perspective, Wall Street is in fact an actual street in Lower Manhattan, and is known as the “financial district” of New York. This is where the New York Stock Exchange (NYSE) is located, along with many other major exchanges and financial firms. Without getting too complicated about the process, it used to be that trades could only be executed by traders that were physically located at the stock exchange itself. These days, however, many online brokers are able to immediately execute trades electronically. This automation via the Internet has allowed many “Retail Traders” to get in on the action. In today’s world, when people mention Wall Street, they are typically referring to the stock market in general.
Why to Invest in the Stock Market – “Cash is King”
This may seem obvious, but before you can invest in the stock market, you must have cash available. This is why Building an Online Empire is so important…The revenue streams you create online will continuously help boost your cash portfolio. Once you have enough cash available, you can begin multiplying it and seeing much higher returns than any interest rate…Would you rather put your money into a savings account and earn a measly .05% return per year, or implement a trading strategy that can realistically yield 30%+ per year…For a financially savvy individual, or any right-minded person for that matter, the choice is undeniably clear – The smart thing to do is invest.
“How Much Cash Do I Need to Start Investing?”
I wouldn’t recommend jumping into the stock market with anything less than $1,000 – This is the bare minimum. Ideally, you will want somewhere in the range of $5,000-$10,000 to start. This amount will allow you to be in 2-3 trades at a time as you learn, and you won’t feel as limited. From there, cash portfolios can range into the millions. It really depends on your own personal situation. I know people with $2,000 portfolios, and I know people with $200,000+ portfolio. If you don’t have this kind of money at the moment, but you are still interested in learning, I always recommend Paper Trading.
Take Action & Grow Your Portfolio Immediately! Happy Trading!
Please don’t hesitate to leave any questions or comments below.
Written by Matthew Thomas
Recently I spoke to a friend about my interest in stock investment and the first advice (or word of caution) she gave me was ‘Be very ready to lose your money’ if you don’t do your homework. The ideal of $5-10 K sounds like a big chunk of cash. Personally, I know more people who have bad experiences in stock more than the ones becoming rich from it. It’s might be the next level that I would want to get into but I really need to learn from website like yours before I put my foot in.
Hi Cathy, thank you for this post. I bet your thoughts here are similar to those of many people considering investing in the stock market. You’re absolutely right: It is easy to lose money without a strategy. But what you will find through education and experience is that stocks move up and down for real reasons…And the more you can understand how stocks work, the easier it is to predict price movement. Technical setups can cause a move (many stocks follow patterns in price movement). Overall market or sector sentiment can cause a move (if the market or sector is bullish or bearish, then individual stocks in that sector will typically follow the trend). And catalysts, or stories, can cause a move – Spotting catalysts is Jason’s forte. I’ll use the stock Liquidmetal Technologies Inc. (LQMT) as an example…With the iPhone 6 being one of the biggest product launches ever coming up in the near term (the catalyst), Jason has already profited big twice within the past month on LQMT out of pure speculation that liquidmetal materials might be used in the phone. And to prove that stocks follow patterns, he has profited this same way on LQMT for a few years now. So when people don’t do their homework first to understand how stocks work, like your friend cautioned you, I’m not surprised to hear their horror stories about losing money in the market. In addition, it is vital to exercise self-discipline on all trades and respect stop-losses. No strategy is foolproof, so before you enter any trade, you should have a target price to sell if it goes up, and a stop-loss to cut losses if it goes down. I wish you all the best in the market! Happy Trading!
Nice article, I did not know I could start out investing with just $1000.
Hi Sabdiel! You can certainly start with only $1,000, but the sweet spot for beginners is typically between $5,000 and $10,0000 – Remember that I always recommend paper-trading before risking real money. For swing trading, you will be in and out of trades every 1-10 days, so having $5,000-10,000 gives you some cash to work with. Anything less than $1,000 will stretch you too thin, and commissions will be a bigger blow to your profits. Also, keep in mind that the more money you invest, the more you can make: A 50% return in 1 year is awesome on Wall Street, but 50% of $1,000 is only $500. In the grand scheme of things, that’s not much money. But if you apply this to a $50,000 starting portfolio, making $25,000 in a year trading is a solid chunk of cash. If you can pull some healthy profits out of the market consistently, you will experience success. Trade smart & disciplined! Cheers!
Excellent Matthew, I will definitely be frequenting your website…anticipating my next visit.
I appreciate the compliment, Manuel. I’m here to help. If you have any additional questions, comments, or concerns, please feel free to let me know. Thanks again.