Money 101

[lowman]

The lure of easy money:

Ahhhh, yes! Nothing like making 50%, 100%, 200%, 300% or more on a stock, in a short period of time. This lure for the new investor is practically impossible to avoid. It's just not possible. It's the very reason the majority of people take up the stock market for 'making money on their money'.

The search for these 'runs' is the greatest measure of a person's greed, and the newer the investor, the more they will learn just how ugly their greed is...usually by way of substantial losses.

The new investor may get lucky on their first 'momentum'play'. Maybe even their second and third. Note, I stress may.

To expect any continued success though, is no less dangerous than attempting brain surgery with a high school biology class degree. Plain and simple.

My estimation is, a new investor will eventually lose 2/3 of their initial gains or investment by trying 'momentum playing'. It is an art and/or a science, make NO mistake! Until you have spent considerable time studying the dynamics of a momentum play, it is STRONGLY advised to only WATCH!

I EMPHATICALLY remind new investors this:

Profits not gained hurts less than losses sustained.

To the best of my knowledge, no one ever 'jumped out the window' for missing a possible profit. I cannot say the same about heavy losses, and ANY loss, is too much of a loss.

It may do well (and I'm sure the majority of market players will agree with me) to tape, in large print, on the top of you pc screen, "DON'T BE GREEDY!!!" or "PIGS GET SLAUGHTERED!!!"

If there is no other more valuable 'skill' a person should learn, first and foremost, when bringing their 'money to market', it is 'discipline'. That, and perhaps moderation.

It's YOUR money. Live to trade another day.