What can you learn from investing in stock market?

It's for a project I have to do. What exactly can you learn from investing in the stock market?





I wrote how unpredictable it is and how hard it is to choose what stock to buy. You can never know for sure how the stock will do over an extended period of time.|||There is a difference between what one can learn and what one does learn.





For me, I learned the hard way to cut ones losses rapidly, take a little of your profits off the table after a significant rise in stock prices, avoid high PE stocks like the plegue, avoid speculative stocks for the most part, avoid tech stocks also for the most part, put a fair portion of you money into index funds and mutual funds so you don't have to spend too much time baby sitting it, try not to have more than 30 stocks in your portfolio because it takes too much effort to keep track of them, keep weeding out the underpeformers and replacing them with stocks with greater potential. Alway have a healthy cash reserve and add to it as stock prices rise, so that when they drop you can take advantage of the situation.|||You can reference sites like economicinvest.com that does research for investors, and identifies what investments are poised for the best growth and returns.





good luck on the project.|||Playing the stock market is like playing poker...you not only play your cards, you play the other players at the table.


Many lousy company's stock skyrocket because of investor/analyst hype. Many great compay's stock go nowhere because the company/industry is "boring" to the hyping market makets.


To make $$$ in the market, get in on the leading edge of the hype %26amp; sell when all newswires and analysts love the stock because soon this stock will crash when the anaysts and marketmakers start to court the next stock.


In other words, the stock market is not a numbers game, it's game of reading human nature.|||You learn how news and politics effect business. You learn about companys. "The only gurantee in the stock market is change" It goes up, down side ways but what effects it most is news and politics.|||You can say you learn discipline. Meaning you make out a plan and you stick to the plan. If you think you will keep making money without re-evaluating your positions, you will problably lose money.|||You should also add to your list the following:





a. How to develop a disciplined thought process





b. Money management because you have to chose between alternative investments and determine how much to allocate to each investment





c. Understanding of risk and return trade-offs





d. Quick decision making processes because you have to read extensively, digest the material read, understand it and make an investment decision quickly based on that information





e. Great research skills because you have to find and process so much information in order to be a good investor.





I could go on and on but those are five on which you can write at least one page.





Good luck with the project.|||you can lose all your money|||You can learn how to lose alot of money real fast, but on the other hand you can also make money real fast....it's unpredictable...you never know what the next day holds.|||u must be displine. stop hogging on to losses and admit your mistakes.