5 Tips to Elevate You to Stock Market Master

Playing the stock market has been a career for thousands of people. Some prefer to make their decisions alone; other like to work with a broker. No matter which of these choices you go with, you will want to learn as much about the stock market as you can before making your investment. Some may wish to invest small in the beginning; some may wish to start with a large investment. There are many paths to take when it comes to profiting off the stock market , but there are a few things every smart investor should know.

Below are five ways become a stock market master.

1. Learn Some Stocks

Don't simply learn the abbreviation for a few stocks, learn about their history. For example, CAT, or Caterpillar, has been a steadily rising stock for decades. Safe investments like this will net you slow, gradual profit, and they are unlikely to lose money anytime soon.

You can focus on a single industry if it makes the process simpler. For example, read about the history of Apple, Microsoft, and other computer companies if you are interested in tech and computers.

2. Consider a Professional Course

Courses are available for those willing to work for their knowledge. You could try your local college, but the tuition will be costly. Another option are course packages aimed specifically at learning about the stock market. Options Animal is one of these courses, but there are many other courses available on the internet.

You can't go wrong with learning from experienced professionals. You could research the stock market yourself, but you risk missing out on valuable information.

3. The Cookie Jar Strategy

The Cookie Jar strategy consists of investing small amounts of money at a time. Instead of putting this money into a savings account or a piggy bank you will invest it. This may not seem like a lot of money, but if you spread these small sums across multiple stocks, it won't matter if one particular investment goes bad.

This is a great way to get your foot in the door and learn the dos and don'ts of stock trading.

Related: 5 Tips to Improve on Your Financial Game

4. Don't Let the Numbers Influence you too Much

You aren't investing in patterns and random letters: you are investing in real companies ran by real people. Don't base your investments solely on quarterly trends . Tying into the first point, you should always learn something about a company you are investing in. Did the CEO run his previous company poorly? What do the lower tier employees have to say about the company? These are just some of the questions you should be asking yourself before making an investment.

5. Don't Invest more than you can Afford

Always be aware of how much expendable income you have. A wise piece of advice is to not invest more than 10% of your total savings. This is enough money to increase your net-worth overtime without breaking you if investments don't go as planned.

Your investments should be treated as lost cash for the foreseeable future. Once invested, the money should be treated as spent, unless of course your stock value increases dramatically. The stock market is typically a waiting game, and you shouldn't be surprised if it takes years for your money to come back to you.

Conclusion

You have a lot of work ahead of you if you want to be a stock market master, but these tips are a good starting point. You are likely to run into terms you aren't familiar with daily, being forced to return to google to find out what a term means. The best advice is to conduct as much research first. Use the internet, take a college course, or simply take a stock market course online. No matter which educational path you choose, you will become a true master at the stock market in no time.