| Someone once told me, "If you want to impress yourself, learn something new. Challenge yourself by seeking new information. Step out of your comfort zone and risk the unknown, knowing that you will be wiser from the journey".
So here I am. Ready to challenge myself. I'm sure at some point in the near future I will wonder why I didn't seek an easier challenge...knitting perhaps. Since I have never been one to take on easy challenges anyway...I'm off to become an investor in the complex world of the stock market.
I've read about and heard the fantastic stories. It appears that lately, these stories have become the norm.
People are becoming stock market millionaires overnight.
I have to ask myself, "How do they do that?"
I am also reminded that, as is true in all things related to life, there is a negative side as well... individuals who lose their life savings overnight. And worse yet, many who may take their own lives due to this disaster.
What is this thing that has the power to bring such triumphant happiness and success and such devastating sadness, all at the same time?
To understand something of this magnitude, I have learned one thing...it deserves my respect. It's inherent power to bring such happiness and sadness...cannot be ignored.
I will begin to respect it by understanding it, through gainful knowledge and information. There is no need to avoid something that I do not fully understand. Sharing my knowledge and experiences will empower all of us to make thoughtful choices and hopefully, avoid any unnecessary hardships.
My goal is to avoid any extremes and search for a middle ground of caution and comfort. No wide swings, no wild risk taking and no nail biting sleepless nights. I've done that all my life, with many poor decisions made on my part. I have learned from my mistakes and do not choose to do that here.
And finally, my foremost goal for this column and us is to have fun! I am so excited to have this opportunity to learn and share. I will laugh at my mistakes and learn from them. I will make many, many na•ve assumptions, knowing that my faithful side-kick "Andy Acorn" will gently steer me back on course.
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"Hi my name is Andy the Acorn, I'm Joyce's faithful side-kick. I've got a keen sense of direction & l'll be helping Joyce along her path. That's all, Just wanted to say hello..." |
"Andy Acorn" will explain my "off course" thinking and help guide us all towards accurate knowledge. Join me in acknowledging this wonderful opportunity to learn about the stock market and travel with me as I stumble, fall, pick myself up, dust myself off, and continue onward towards success.
Just one quick note here:
I am a "top down" thinker, i.e., I tackle projects by getting an idea of the big picture first, and then seek out the parts, individually that make up the big picture. As an example, my 4 year-old son was pushing a stool across the kitchen floor. I was sitting on a couch, too tired to jump up and stop him. I knew exactly what he was going to do...climb up for those out-of-reach cookies.
The big picture? How far will he fall, what's the worse that can happen, and is there any possibility of brain damage from the fall? Probably "no" to all my concerns. So...exhausted but watchful I see him climb up, reach the cookies, and get down without a trip to the emergency room. That is "top down" thinking...look at the big picture first, then look at all the components that make up that big picture.
Using my "top down" thinking skills, I began my journey by looking into the history of the stock market as a whole. As someone who had no prior knowledge into the humble beginnings of this beast, I found the information fascinating and well worth the few extra minutes of reading.
From what I could glean from the history of the stock market, it began with a handful of men who bought and sold shares in certain companies. I would define a "share" as a part of a company that is being sold. An investor would purchase a share in this company and would then own part of the company. See the resources below for a more detailed explanation.
I also learned that the term the "stock market" is a general term used to describe the trading that takes place between any and all companies selling "shares", and the whole host of people buying the shares...the investors.
With this much information, I know feel that I know enough to move on to my next challenge.
Next week I'll be researching and learning about some of the entities that comprise the "stock market": The NYSE, AMEX, and NASDAQ.
Yikes!
What do those letters stand for? I'll find out this week and let you know.
Wish me luck and thank you for joining me,
Joyce
For Further Reading
Pssssssst. Wanna Trade?
Historical Perspective. A time-line of the beginnings of the stock market
History of the NYSE |
