Hacking the Stock Market
This will be a series of three Seasons in which I will give you key components to succeeding in the stock market. The series will be divided into five chapters each one of them dedicated to a theme.
Let’s dive into Season One, Episode 1: The Introduction | Mentality
The world of finance might be seen as a complicated world and that it was created for the “wealthy”, but in this new series that I’m creating, I will teach you how to build your own financial fortress. The Stock Market is a great tool for capital growth or passive income but not everyone knows how to predict the market or trade in the market. In this series, I will give you tools that you will need to start investing or trading in the equity market.
Before diving into the “technical area” we have to discuss how to create the right mindset to be able to invest or trade effectively. As I mentioned earlier, the stock market is one of the best tools out there to create passive income and capital growth. But I see a lot of people trying so hard to become the next Warren Buffet and ok, that is not a bad idea, but your dream should not be to become like someone that you admire, but instead to be able to have a clear purpose of what it is that you are dreaming and why. The first question that you need to ask yourself is:
Why do I want to invest in the stock market?
If the answer is money, you need to rethink your motivation because having money can’t be your only motivation. Money in the stock market is elusive and if your motivation is money and you don’t know how to handle losing it, then you won’t be able to get back on your feet if you lose it all.
Why do you really want to invest in the stock market?
Do you want to buy a house? Do you want to pay for your next career? Do you want to fund your startup? What I’m telling you is that every time you do something do it because is a path towards fulfilling your destiny not because you want to earn more money.
If you don’t know why you are doing things in life you may be on a path that will eventually get you stuck, before you look into another person’s life find out who you are and what you would like to be doing. I always start asking myself am I doing this to make money? or am I doing this to reach my life purpose? Because money will always find a way to be a part of your life, but if you figure out more important things first like your purpose then you will be drawn towards the correct path.
Try to get richer in knowledge before you get richer in wealth.
The stock market is not a get rich fast scheme, this will take time to become a master. but you are in the right place to get started.
The stock market is not a get rich fast scheme, it will take time for you to become a master. But you are in the right place to get started.
This is a good video to start our journey that was made by Simon Sinek:
Remember that I told you that people think the stock market was created for the wealthy, the stock market was not created only for wealthy people but it is them who usually have the right mentality and usually succeed it. The stock market is an emotional market (later I’m going to explain this topic more deeply, in episode two). If you do not dominate your thoughts and emotions you are likely to lose 100% of your investment.
We will dive into Technical Analysis later but before we get into that, let me discuss the most important key to become financially successful, and this is that we have to understand our behavior before we understand the market’s behavior because at the end of the day we make the market.
You will encounter a lot of upside downs but you have to keep reminding yourself that you are just another fish in the sea and you will see bigger fishes and smaller fishes than you but the size is not the thing that matters, you can be the smallest fish but if you know how to outsmart them you are going be fierce and in a whole different dimension.
In the next episode, I will talk about emotion and how they can make you more productive or how they can make you weaker. Emotions are good but they need to be managed.
ALWAYS ASK YOURSELF WHY AM I DOING WHAT I AM DOING!
See you next week in another Episode of Hacking the Stock Market with Victor González.