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Showing posts from September 24, 2023

Risk Reduction in Stock Trading

My neighbor pulled out the dusty can of concern, blew of the debris on the lid and opened up to me. She said, "Stock Trading is too risky". We were discussing Investments and Reports from AutoZone and Advanced Auto Parts. An Accountant by Trade, well-seasoned in the Industry, I often look to her for affirmation when I have concerns from Reports. Her and her Ex-Husband lost a lot of money in the Market. He (The Ex-Husband) kept buying Stocks and losing money. He never consulted with his accountant Wife, ironically. Although this sentiment seems popular amongst those who have lost money, I consider the old cliche, "If at first you don't succeed, try, try, and try again". Let's take a look at the basic theory of this all. Stock Trading is a form of Investing that involves Buying and Selling Shares of Companies on a Stock Exchange. Stock Traders aim to profit two ways. Two ways that I'm aware! Most common is exploiting the fluctuations in the prices of the...