Getting into the stock market, investing, and trading are all fairly difficult, especially if you do not have the guidance of seasoned veterans and professionals. That’s why I’ve taken the liberty of getting some advice from Roger Scott, one of the most successful traders in the world and the current head trader of WealthPress.
WealthPress is an organization dedicated to improving the financial liberty of everyday working people, no matter what background they come from. Roger Scott spends a huge portion of his time giving out advice to new investors and has helped improve the financial lives of so many people.
Many people, especially those that have spent very little time in stocks and the market, believe that it requires pure luck to be extremely successful. According to Roger Scott, the truth is that it takes an incredible amount of research and intuition to be very successful.
As a trader, you have to see things that the rest of the market doesn’t see. You also need to have a very good grasp of the fundamentals and how to do due diligence. Once you’ve got the fundamentals down, however, you still need to be able to think about the future and look for perspectives others won’t have.
You do not need to be a millionaire to start your investing and trading career. There is an obvious floor when it comes to day trading specifically since you need $10,000 in funds just to start.
However, losses are a part of the gig, so Roger Scott recommends having a few thousand extras to counter any variance you may experience. However, as long as you practice due diligence and stick to safety rules like the 1% rule, you will be fine with a small bankroll and be able to build your way up.
A lot of investors and traders will make the huge mistake of buying any stock that they see the price drop. Roger Scott warns against this because you do not want to catch a falling knife.
The truth is that there are so many overvalued stocks, especially in the modern stock market. It can be extremely easy to fall into the trap of buying them just to find out that they’re still overvalued after the initial drop.
We do not know when the market will correct itself, and the current bull market will cease, but you need to be prepared when it does.
A company’s success and popularity are not actually as important as new investors believe they are. What’s important is the company’s growth potential.
You will make a lot more money investing in an unknown company that grows 1000% than you will be by investing in an established company that grows 10% over the course of a year. The truth is that many successful companies have already grown and are at their peak.
They’re not going to drop anytime soon and will probably be around forever, but they will not make more money next year than this year. However, the good news is that these companies can be excellent safe investments to hedge against things like inflation.
Another misconception Roger Scott sees many investors have, is that every stock price has to fall eventually. This just isn’t true. Companies can grow almost indefinitely if they are always innovating and growing.
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