2 stock trading quotes by financial geniuses.
An investor/trader can learn a lot about stock trading quotes from geniuses in finance. Their whole philosophical mindset can be measured by one or two sentences. We should always look at the big picture when trading stock. Having money does not solve every issue of mankind. Money can potentially bring ideas into fruition. Reading these 2 stock trading quotes will put everything in perspective.
Peter Lynch is one of the most successful investors of all-time. From 1977 to 1990, Mr. Lynch averaged an annual return of over 29% as the manager of the Magellan Fund at Fidelity Investments. He co-wrote a number of books on investing.
1. “Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.”
Many people have a wrong conception of what the stock market truly is. By not striving to educate yourself in this field, you are potentially taking away a chance for financial security and an ability to help others in need. A lottery ticket would be an equivalent to options trading. It is a gamble, but even within the options trading genre there are a number of things one must know before attempting them. While purchasing a share of a stock, you become a believer of the overall message in the company. Without investors, companies would not go public. They need us to help fund their ideas to make a company bring joy in some capacity. Many people feel happy owning an Apple iPhone. Not many realize the fact that you can also make money from investing in their company. Not only do you need to buy this product for your daily use. A lottery ticket is a one-and-done event. But buying shares in a company you believe in and has the strong capability to withstand a financial crises will help you be financially secure.
Benjamin Graham is considered the father of value investing. His main ideas focused on the investor psychology, the thought of minimal debt, the buy and hold investing, and many other important facets in finance. Mr. Graham wrote two important books: Security Analysis and The Intelligent Investor.
2. “If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.”
Flashy stocks can bring you excitement due to their ups and downs. They can also potentially bring you a quick profit if you sell at the right time. The problem with things like Bitcoin is that it will not sustain your lifespan. It is like a type of song that is not really good but becomes popular for a second due to good marketing. These flashy objects will rapidly fall way quicker than they rose, only to be forgotten as a tiny blip in human society. Investing in stocks that are legitimate staples in our society will bring a consistent gain one way or the other. Sure, the stock market will fluctuate often due to many factors concerning our world. What will be great during these kind of situations is when you buy more of what you believe in and it rises slowly but surely.