Around 90% of all retail traders and investors are worse off financial, after the first couple of years in the stock market, than before they started trading or investing. And that’s if they make it through those early years without going broke.
This is a staggering statistic and one that is echoed around most of the financial markets of the world.
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investing for beginners,
Investment Objectives,
investment success,
Profitability,
share trading,
stocks shares,
Trading Plan,
Trading Strategy,
Wealth Creation
Market forces, know as supply and demand, play a significant role in the determination of price. Understanding the basics of economics can assist an investor in two ways:
- The stock investor is able to make an educated assessment of where the economy and financial markets are in the current economic cycle. And therefore, which asset classes will most likely offer the greatest return,
- The stock investor (and trader) will be better placed to understand which side of the market is driving a stock’s price. For example, is it the supply side or underlying demand that is currently moving a stock’s price?
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Tagged as:
Economics,
investing for beginners,
investing in shares,
share investing,
share trading,
stock market basics