How long is the learning curve for getting into the stock market game?

Answer 1

It depends on how much money you have to invest, what kind of person you are, how much time you invest in learning, and what kind of trading you want to do.

The shorter your time horizon for holding stocks, the faster you can make or lose money, and the faster you can learn, but (ironically) the more likely you will quit before you master your strategy.

For example, the average day trader probably takes a minimum of 3-4 months of full time (8-9 hours a day) to turn profitable, losing 50% or more of his or her money in the process, and 6-7 months to start making enough money to quit his or her job. However, most people quit before this, because, as they say, if you don't know who you are, the stock market is an expensive place to find out.

On the other hand, swing traders (holding days to months) may take a couple of years before they start making money. They might get lucky in the meantime, but they won't have mastered their strategy before then.

Long-term investors (like value investors) are only trying to beat the indexes. They may never achieve this, because the learning curve is so long - if you hold each stock for 2-3 years, or longer, it takes too long to learn from your mistakes.

So, it really depends on your personality, because that will determine what strategy best fits you, and how able you are to admit and learn from your mistakes.

That said, the best books I can recommend for any beginner are: 1) Anything from Peter Lynch (if you're thinking of holding long-term, and 2) Anything from William O'Neill (founder of CANSLIM) (if you're thinking of holding shorter-term).

One last note: The stock market is not a place to make easy money. Your successes (and luck) will be preceded by immense amounts of hard work, dedication, and discipline.

Answer 2

It depends on how good you are. On average, the buy and hold makes 13% a year and the person that trades makes 15% and the person that day trades goes broke in less than 2 years. Meanwhile you best yielding U.S. junk bonds are doing about 8% a year.

The safest stock market is SPY, which tracks the SP500. The SP 500 meets (only because some mutual funds track the SP 500) or beats 80% of the mutual funds out there over the long term. Right now its average yield has been 12% over its lifetime.

If you go to investopedia.com, you can probably learn the basics (outside of options) in about a hour.

Answer 3

First off the stock market is not a game.

I'm a position trader now, but I started tinkering in the markets in 2001. For the first 2 years, I only did buy-and-hold with mutual funds. I made a little money here and the but I wasn't too pleased.

I started getting into actually trading stocks once I got a little bit more money. Trading stocks is a lot more profitable than buying and holding but it takes time. It's not a game. I've made tons and lost tons. But I've had more good days than bad.

It all depends on how much money you have and how diligent you're willing to be. Some people learn it in weeks. Others, it takes years. The best traders have years under their belts. The best time to start is now. You won't regret it.

Answer 4

the people who tell u the risks involved....
might be those who've lost money....or the ones who never invested....
its' based upon study.... and the circle you make..
no time span sir....
just jump into it....
simple reading and discussing never helped anybody...
invest.... and you keep learning.....