Practice for at least a year. Also know how to read both technical charts, economic news, and company financial statements. The latter is difficult because deriving any meaningful analysis requires a solid knowledge of corporate finance.
Also start with Martin Armstrong. The socrates system is available as a beta now and I'm very impressed.
Where you're trying to get is that you need to figure out a strategy which produces returns above the market, and that not everyone else has figured out yet. The problem with almost every strategy is that if it actually is good then institutional investors such as Hedge Funds will figure it out and start trading by it. Get enough people doing it and those movements you used to be able to profit from cease to occur. You need to continually research new trading strategies.
Also don't get TOO sidetracked into doing things like analyzing company news, analyzing earnings, etc. As one manager at very well performing family fund told me, "People use that bullshit about a stock being 'overvalued' or 'undervalued' as an excuse to justify them being wrong. At the end of the day its all supply and demand".
Like he said, at the end of the day you need to understand market psychology to where you can recognize strong trends and intuitively recognize turning points. I'd recommend martin armstrong's ideas as a good conceptual framework. Actually developing those skills isn't something you can shortcut. Be prepared to practice for at least a year before you bet any substantial money.
oh...almost forgot. Don't trust what people say. One example. I got to see a presentation from one CFO where he was claiming exponential growth for his business, 3X the footpring (for a retail chain) in the next few years. If you actually think it's bullshit. While I do see room for some modest growth, his growth ideas would involve this chain growing to the size of Starbucks or Chipotle.......and this product is just a bit too niche for that to happen. The stock has been plunging. It's not so much because the business won't grow, but because someone that obviously full of shit produces a harsh negative reaction from investors and he is punished accordingly.
Also start with Martin Armstrong. The socrates system is available as a beta now and I'm very impressed.
Where you're trying to get is that you need to figure out a strategy which produces returns above the market, and that not everyone else has figured out yet. The problem with almost every strategy is that if it actually is good then institutional investors such as Hedge Funds will figure it out and start trading by it. Get enough people doing it and those movements you used to be able to profit from cease to occur. You need to continually research new trading strategies.
Also don't get TOO sidetracked into doing things like analyzing company news, analyzing earnings, etc. As one manager at very well performing family fund told me, "People use that bullshit about a stock being 'overvalued' or 'undervalued' as an excuse to justify them being wrong. At the end of the day its all supply and demand".
Like he said, at the end of the day you need to understand market psychology to where you can recognize strong trends and intuitively recognize turning points. I'd recommend martin armstrong's ideas as a good conceptual framework. Actually developing those skills isn't something you can shortcut. Be prepared to practice for at least a year before you bet any substantial money.
oh...almost forgot. Don't trust what people say. One example. I got to see a presentation from one CFO where he was claiming exponential growth for his business, 3X the footpring (for a retail chain) in the next few years. If you actually think it's bullshit. While I do see room for some modest growth, his growth ideas would involve this chain growing to the size of Starbucks or Chipotle.......and this product is just a bit too niche for that to happen. The stock has been plunging. It's not so much because the business won't grow, but because someone that obviously full of shit produces a harsh negative reaction from investors and he is punished accordingly.