Boi

The markets are volatile. Pretending that you will make a consistent annual return by investing into a few stocks home refinancing unrealistic. Because the markets are not tamed it may be hard to produce consistency just by holding onto a stock.

I have a friend who is 100% bullish. He believes his stocks are consistently heading up. He even believes this when the markets are crashing. This is the same idea most traders have about the stock market. They expect it to be like a savings account.

They think of the market like this, if the market goes up an average of 10% a year then if I put my money in the stocks for 6 months it I should make about 5%. This type of thought is federal loan consolidation program I have heard a lot by armature traders. I don't understand that way of thinking.

The markets are volatile and unpredictable; you do not just put your money in a random stock and watch it make nice consistent interest. Ok well maybe in a bulls market, but everyone is a winner in a bulls market.

The only way to make consistent returns in the market is by trading short term market movements, trading the ups and downs as they come. Learning how to make money in all different types of environments not just when the market is heading up is the easiest way to develop a consistency in the stock market.

But even that is never totally predictable. You can never foresee a losing streak, or a giant 50% overnight gap in your favor. The markets have always and will always be unpredictable. That is not saying you cannot make a good living by trading the stock market, because you can.

I'm just reminding you not to assume the market works perfectly consistent. Don't assume that if you make $6,000 dollars one month it will occur every month. Working on being as consistent as possible is all you can do.

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// posted by yemdgptoe @ 3:51 AM 0 comments