Stock Market Tips - VII
It may seem that you are not capable to make your own investment decisions when it comes to stock trading, for there is so much to learn about the complexity of the stock market at large and you just cannot comprehend enough to make up your own mind yourself. Hence, you seek for the services of a financial advisor.
Well, that is a good decision for some people. However, after the 1998 crash of the stock market, most people have wondered if it is actually necessary to hire the expensive financial advisors. Is there need for it?
I cannot say for certain whether they serve the purpose that they claim to serve. But all what I can tell you is that if you put your mind to it and you flow with the rhythm of the stock market you can be an advisor yourself in no time.
Most financial advisor will advise you to put your portfolio in mutual funds or related trade. In a way they are just telling you to "buy and hold." There is nothing wrong with this stock market strategy as long as the value of the stock goes up. However, what if it just plummets like a rock down the cliff? Which is reminiscence of the stock market disaster of October 2008 (This is a time that no advisor will feel too comfortable to think about).
However you SHOULD think about that day, for it is your neck that is at risk, not really the financial advisor's. For if such a situation ever occurs again while your stocks are at stake, I bet you will be more than desperate and plead that the stock should return to its normal margin, even if you will not make any profit.
This I can certainly testify to because I have faced such a dilemma before, and it isn't funny at all. But I will tell you that you should not face unnecessary risk like that, because I have come to realise that there are ways to invest if the stock value is slow moving, and there are ways to invest so that you can insure your stocks against sudden plummet. But these are the rules that work for me and I am not trying to be your financial advisor.
All in all, your advisor had told you to buy, pray and hold until the stock value go up and you can lazily count your profit. But, I tell you for certain that God only rewards the gifted minded that has put his intelligence in to profitable use. How silly is it for you to calmly wait for 15 or more years until the stock comes up.
At this point, I will just contain my fury, so that I can calmly tell you that you are the one that has to study the market yourself, and if you still need to hire the "expertise" of a financial advisor, let him know immediately about your goals and ambition in the stock trading and hear his concrete opinion as to how you can achieve it.
Yes, he might be of assistance in providing the latest news about the stock market, but you should be the one to let him know the decision, and if he is under your employ, mandate him/her that you want to attain a particular level of capital base at an exact point in time.
On the whole, you should be the one out there monitoring how the stocks are performing and making strategies on how to make the values of yours increase. You do not need an "expert" to tell you that, you yourself can be the expert, though it may seem strange to you at first, but you will definitely get a hand on it with time. Happy investing!
