Monday, July 16, 2007

Lessons Learned from Investing Thus Far


So, I have only been in the investing game for a little while thus far, but, even though my stock has been tanking, I have already learned a lot of really good lessons.

The main thing I am starting to learn is to get a better picture of the investing world. Basically there are the institutional players (Wall Street) and then the rest of us (Main Street).

For any large cap stock, there is almost no way that Main Street can out-know or out-smart Wall Street, so there is usually never any type of sure thing among these stocks.

To outperform Wall Street, you have to take on a lot more risk by wading into smaller caps or options or other risky areas. However these seem like very risky waters, and I am going to be wading into them very cautiously.

The other lesson I have learned from investing is the basic mechanism of trading. Things such as never placing market orders (always place limit orders) and the other nitty gritty of how to trade.