- The stock market is the result of potentially billions of calculations in which millions of variables are changing values and alternating their direction every second.Or you could take the easy way out and say, “the stock market is a bunch of random numbers with derived colorations to the real world.” Let me amend my easy definition so it is a little simpler, “the stock market is a bunch of changing price tags.”
- The stock market preys on the weak.Anyone who isn’t doing their homework is fair game to both the sharks and the system itself. While the system isn’t out to get you, it certainly has no qualms about taking you out.
- The thoughts expressed by Jim Cramer are those of his own.You are responsible for your own portfolio at all times. Any recommendations by anyone are simply that, recommendations. That’s why we’re not all go-zillionaires like Warren Buffet. That’s why there is a 10 page essay as a disclaimer at the beginning of every episode of “Mad Money.” That’s why this article should probably have been called, “Everything I *think* I know about the stock market.” And that’s why every time in the past 7 months that I have a conversation about stocks with my dad, he ended it with, “But what do I know? I bought stock in a company that makes robots that go around and vacuum”
- Market Cap is real and does matter.How much are you going to be personally be affected when a tidal wave hits your investment ship? If you’re in a hugonic cruise liner, you are simply going to continue playing shuffleboard right through it. But if you’re sitting with 2 other investors in a small cap dingy, you are going to be in for the ride of your life!
- It’s better to invest smaller amounts often than large amounts rarely.This might just be my own little philosophy, but I think it’s better to invest more often. That way you are constantly watching the market. You are watching for trends. You know what is going on in the sector and industry. If you don’t then you will become target to the second rule. But if you do follow these things, your gain will be substantial, if not initially in fiscal value, but in your trading and investing abilities. And with stock commissions at a super low price, you don’t have to save up for months to invest.
There it is, everything I know about the stock market. Of course I’d like to hear what you know about it, so please leave me a comment.