1st stop-Confused zone
Speculating vs Investing
Speculation-buy and sell(those who want to earn fast) results aren’t certain
Investing-buy and hold(those who want to earn for certain) results are determined
2nd stop-A castle in the air
Lets say a company is overvalued. It’s worth is a 100 dollars. Right now it is at 300 dollars now going to 500. Lets understand more about this problem.
3rd stop-The bubble does vurst
Now the same stock has gone to 150 dollars now, close to it’s true value.
4th stop-The technical analyst
These analyusts predict the future, or they try to. They do win, but also lose. They reflect on the past. Looking at all the recessions and bull markets. If you follow these people, you can get short-term money.
5th Stop-Security analyst
These people can get wrong reports from a company also, it can also be that they might predict wrong themselves because of not being able to predict according to news.
6th stop-author’s den
This is the author’s facourite stop. Index funds. If you do take funds, these are less prone to losses.
Precautions to take
Get an insurance
Own a home