Vladimir Brody's  Instablog

Vladimir Brody
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I´m an expert in the development and deployment of statistical models and non-discretionary systematic trading strategies for trading currencies, futures, and stocks. I built and traded numerous quantitative models for hedge funds and energy companies in the past. I was quoted by the AUTOMATED... More
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  • 4 Myths Concerning Making Money On Stocks 0 comments
    Mar 7, 2013 10:15 AM

    There are some very powerful stock traders who use complicated computer algorithms to make them money. Some people are deterred by these large players and believe they cannot profit from stocks. Here are four of the biggest myths concerning making money on stocks and how you can profit in the stock market:

    1) Large Investors Have All the Advantages

    Large banks have the most up-to-date computers, money and leverage to make money on stocks. They have access to more information than the small investor. They are experts at trading stocks. So how can small investors compete?

    A small investor does not need to know all stocks. Find a niche and make money that way. Even with large supermarkets, some people sell food on the side of the road.

    2) The Market is Manipulated

    Insider trading gives executive, bankers and government workers information that can assist them in trading stocks. Some believe the market is so manipulated that none can make any real money.

    Plenty of people still make money. No one would invest in the stock market if it was manipulated or rigged. The government regulates the stock market.

    3) Lack of Financial Skills

    But aren't most financial traders, geniuses with incredible memories and calculating skills? Some people think they lack the financial skills to profit from the stock market.

    All the historical data is available now. The Internet offers many resources. There are systems, like the Assetbook Signal tool. These help novices to time their trades. Even beginners can profit from stocks.

    4) High Risk

    Risk versus reward is a key element of stock trading. The higher the risk, the higher the reward. Interest rates are meant to measure risk. Some think that stock investment is too risky. They believe the wealthy can afford to lose money.

    People have been making money on stocks for a long time. Stock exchanges are highly regulated. Risk management allows you to control how much risk you take on. You can diversify your holdings. There are options or derivatives to help you manage risk. Decide what risk is the proper amount for you

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