There are so many different investing tools out there... so much information available to investors. It can sometimes be overwhelming if you're not careful.
A hammer is a great tool. You can hang a picture or build a deck. But until someone shows you how to use it you could wind up smashing your finger.
I use the following stock market tools on a regular basis:
1) Investors Business Daily (IBD)
2) BigCharts.com
3) CBOE.com
I use the IBD to update my watch list. I use BigCharts.com to determine when to buy and when to sell a stock, ETF, or an option. I use CBOE.com to determine which call or put option to buy or sell.
You can "smash a lot of fingers" using stock market tools incorrectly.
They all provide a wealth of information but if I didn't learn from my expert mentor 10 years ago how to use these tools, I'd still be losing money in the stock market and jumping every time an analyst on CNBC made a dreadful prediction of a company's bleak financial outlook.
CNBC is a tool of choice for many people. Don't get me wrong, because information is typically a good thing. But only if you understand whether the information is important.
I know many of you have heard of the 80 / 20 principle. Well, I practice the 80 / 20 principle in the stock market as well. I focus on the 20% of information that gets me 80% of my results. I don't get stressed by anything I hear on television or the internet about the stock market. That's because most of the information doesn't matter to me and has no direct influence on the outcomes of my trades. I stick to my systematic approach.
Now if I were a day trader I'd probably care more about the crazy day-to-day whims of the market. But since enjoying life means not being glued to a computer all day long watching stocks, investing has become essentially stress free for me. And it can be this way for you too!
Best wishes to you in the stock market,
Aneshia
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