Anyone who has no idea about stocks will find it difficult initially in the stock exchange. That’s right. After all, there are a few traps lurking here that you should avoid in style.
A large percentage of new investors nowadays prefer to go directly to the ETF at the market level. This shortcut gives you a very good risk-reward ratio over the medium-long term. Especially if you have no idea about stocks.
Because everyone knows: You can invest 10,000 hours to find your way around a topic. This should also apply to stocks.
But with a simple trick, you can save a lot of time. If you do it right, you can work your way up to becoming a true stock insider in just an hour.
True knowledge from within does not come for free
You can recognize a real stock professional right away. Because information flows from it.
Apparently, the person has a unique insider knowledge of the stock in question. Sure enough, the balance sheets of the past few years have been rotated and endless columns of numbers have been professionally evaluated.
Added to this is a unique understanding of the fundamental situation of the core company. Competitors were scrutinized as thoroughly as management’s vision.
Anyone who has no idea about stocks is rightly affected by this knowledge. You can really feel that this insider put a lot of time and effort into it.
The work is long overdue
Without a doubt you already have a good level of knowledge. To see this, stand in the middle of the living room and turn 360 degrees.
On this small journey you will discover the tangible investments of the last few years. Items carefully filtered from the mass of consumer scrap.
Maybe a low-power laptop with an AMD processor. This model is still light years ahead of the competition.
The mountain of HelloFresh boxes didn’t come about by chance either. One can no longer imagine life without the practical kitchen aid.
Nobody knows anything about stocks
In short, the product is the company. In other words, it is the company’s knowledge of the matter.
Oftentimes we wonder if anyone would like to buy shares of the company tomorrow. The question is rather whether the products of the company in question can find a buyer tomorrow or ideally at all times.
The answer is easy when we have already made the decision to buy. Because then the manufacturer must have done something right.
You may not know anything about stocks. But you should be very familiar with your living room equipment.
Within a maximum of one hour, the living room is thoroughly inspected. Within this time, you can logically understand many purchase decisions. The result is a stock pick that you can basically rate better than many professionals.
Article Do not know about stocks? One trick to get maximum insider knowledge in one hour first appeared on The Motley Fool Germany.
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Stefan Nerger does not own any of the mentioned shares. The Motley Fool does not own any of the shares mentioned.
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