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Learning How to Pick Stocks like a Seasoned Investor

BY Rebecca | 30 September, 2016 | no comments

For those of you who don’t quite know it yet, with the exception of those who create something and then sell whatever it is they created over and over again, most millionaires actually become rich from selling the idea of their millionaires’ lifestyles. How many trading course offers have you had shoved in your face featuring a so-called maverick trader who has some brilliant method of trading which makes them extremely successful? You want to be like them, right? Yet the truth is if their methods were really that successful in having them rake in big bucks, why on earth do they need to charge you for their provision of their methods?

I don’t know about you, but if I discovered a secret to success that made me super rich, I’d spend all of my time implementing that secret and racking up the riches instead of trying to sell it to a bunch of people who would then potentially saturate the market.

With this thinking I found myself attending a billionaire investor’s lunch — yes, I did say billionaire investor. That billionaire investor shall not be named right now for a number of reasons, but I’m sure it’s not all that hard to figure who it might be. So anyway, I didn’t pay for a spot at this lunch because number one, I would never pay for such events and number two, a ticket was handed to me by a colleague who could no longer attend due to other commitments. The ticket costs a lot of money, so I reckoned I could very well get some useful insights which I could then practically implement to perhaps set myself on the path to being a millionaire investor myself…baby steps…

As it turns out the same old jazz happens, in that it’s more of a motivational session as opposed to being an exploration of some unique investment secrets and strategies. I was rather disappointed to leave the venue only having used up about two out of the 20 pages I brought along to take some notes.

I did indeed learn something however, and perhaps these types of seminars, training sessions, masterminds and the likes could lay claim to learning in this way being the whole point. What I learned was that if you want to learn how to pick stocks like a seasoned investor, you have to focus on those stocks related to industries you deal with on a day to day basis. That way you’ll have real ground-level insight and following the markets won’t feel like a chore.

Just as a simple example, if there’s a sudden spike in the financial claims filed against a specific bank and yet the bank’s share price keeps rising, you then know that either market sentiment is happy about the fact that that bank actually compensates people fairly on their claims, or that the market may perhaps not yet be aware of what is effectively an over-bought stock which is bound to drop pretty soon.

A simpler way of looking at it is just keeping an eye on the food prices in the supermarket where you buy your groceries and then comparing these with the stock price. The idea is if you focus on those markets which form a part of your daily life, picking stocks becomes much easier because you know how those stocks are performing in the real world.

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