What are the secrets to making money in the stock market?

Bob Parker, CEO of Holborn Assets Financial Services

Most Viewed Writer in Investing with 210+ answers

One of the secrets I have learned is that 99% of all the people involved in the trading industry are just liars. There is no broker that would be happy to ‘inform’ you, enlighten you about something, but only reap as many benefits out of you as possible. All of the advertising, persuasive messages, brokers, all this fever about making profits does not expand to help more and more people, but to get their money. It is an industry that sucks the money from many into the pockets of the few. Keep this in mind.

This goes back to more than a century ago, when the elite bankers from the US and Europe shifted from a production economy into a speculative one. The speculation went crazy in a geometrical progression starting from the 20th century, when bankers such as Astor, Morgan, Schiff, Rothschild, etc. changed the face of the economy by introducing speculative operations and making them popular to the public. It is actually an illusion. You will see people wearing suits, sitting on the chairs in face of the computers all the day searching for “profitable stocks” or Forex pairs to invest their money. This is a trend or a fashion and people like to consider themselves ‘above the others’, even if most of them barely maintain the balance. It is a virtual trap that has nothing to do with the economy.

The speculative economy is designed to do this:

Do you see that 80% of people are below 0 and the top 5% go higher? Well, this is not an economy based on production, not even on consumption, it is all about these tricks that the big banks are playing.

Here it is in Britain:

In 10 years, 90% of the UK people had relatively the same income, while the rich people always increase their wealth.

Those who have money will get richer, and those who don’t have it will just maintain their position, which would be the best case.

So, if you are a beginner in stock trading (and probably you make the first steps, because professionals know there are no secrets and if there would be, no one would tell you), my advice would be to study everything about this subject from an authentic viewpoint. Forget about your dreams, emotions, buying a car, a guitar, etc. and try to educate yourself.

Anyway, if you really want to trade, you should know that

• on-line traders don't have a direct connection to the market.
• Big bank institutions buy when the stock collapses and sell when it's high. Most investors are wired to buy when the market is bullish. But institutions do the opposite.
• Education has a higher return on investment. The Brookings Institutionreported that long-term investments in stocks, bonds or housing may return less profit than getting a college degree. The benefits of a four-year college degree are equivalent to an investment that returns 15.2% annually, says Richard Gardner,CEO at Modulus Financial Engineering Inc.
• Often, the stock broker allies himself with his shareholders rather than with his clients, says Sam Seiden, vice president of education at Online Trading Academy.

Warren Buffets says: It is not necessary to do extraordinary things to get extraordinary results. - By periodically investing in an index fund, the know-nothing investor can actually outperform most investment professionals.

Whatever you decide, you should know that borrowing money to invest, spending more than 10% of your budget for investment, and trying to immediately recover your losses is always a bad idea.

I hope this was helpful!

Regards,

Bob Parker

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