My name is Eric Brown. I have been researching stocks for about 8 years now, and investing for half that. My specialty is Technical Analysis, which simply defined is the study of patterns and trends in the stock market. Of course, there is no such trick, analysis or thing that helps you beat the market every time, but I have found the most success using this "science". After trading for a couple years, people have gotten curious about what exactly I am doing. It has got to the point where there are too many people for me to teach individually, so this blog will serve that purpose.
The stock market is a very inconsistent, tricky, moody thing. Many people have lost their entire fortune (see: 2008 Financial Crisis). In order to even have a chance at earning a positive return in the market, you must remain extremely disciplined. AT NO POINT SHOULD ANYONE EVER INVEST IN A STOCK UNDER $1.00. Yes, a stock worth $.05 can double your entire savings if it only goes up to $.10, but what if it goes to $.00? There is a reason why the stock is that low. Stay away.
If you do decide to start investing, make sure you have a set of rules that you stick by. For example, I never buy any stock under $10. Later on in the blog I will post my rules, and how you can make your own set. Next, throw emotions out the window. Emotions are the worst thing to happen to the stock market since insider trading. They were the reason why people held portfolios during the 2008 Crisis instead of selling at the first whiff of decline. Emotions are such an important concept to understand that I will spend a couple posts on this. If you can, take as many psychology classes as possible in high school and college, or research some books to read on your own.
That brings me to the next topic, books. I'm not even close to an expert in this subject, but there is a big difference between my skills and a beginner in this area of expertise. The reason for this you ask? Books! I have read about 50 books on Technical Analysis, the stock market, and individuals successes and failures. My Booklist will be up shortly, I highly encourage you to pick them up for some light reading.
That's all for now! I will try and keep this blog updated at least once a day, or even more depending on the urgency of the message.