Specialize in the Stock Market
If all you feel you need to learn is the stock market 101 basics then you should probably just invest in an index fund and call it good. It is difficult to justify the time of investing for yourself when you have no focus because your returns will be lucky to only meet average. When you invest for yourself you have some hurdles to overcome. .
The Hurdles
Most of the hurdles simply involve economies of scale. When you are buying so few shares at a time (relative to a large mutual fund) you pay more in commissions and you don’t get the best prices on the market trade. Also, you don’t have access do dedicated traders for very local price optimization, researchers to catch obvious issues in specific trades, or simply enough returns to pay yourself for your time of doing all the work yourself.
When you only learn the stock market from a couple of simple books you can’t expect anything more significant than the average.
The Solution
The answer is to specialize in the stock market with another skill you’ve acquired over your life. The market is big enough to encompass all types of skill sets. If you’re very good with patterns look at pattern trading. If you have been in manufacturing your whole life than invest in manufacturing companies. You will have more insight than the average stock market researcher giving you the edge. Many great investors only focus on one aspect of investing. Very few try to manage penny stocks, options, blue chips, bonds, and the FOREX all by themselves.
Remember, investing isn’t about mimicking the pros. It’s about making the most money from your money possible. If the most money possible involves someone else managing your money so you can keep working that’s OK too. There is no right way, however there is a best way for you to invest.
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