Learn How to Make Money - Stocks NOT Gambling

The stock market has long been seen as a form of gambling, yet many have found it to be a a great hub to make money. Some say throw darts at the charts to choose their stocks, others search for patterns and build systems on trend or expected demand. My philosophy, learn how to make money in stocks that are building equity.

The big boys play with millions of dollars causing pump & dump swings, as the rest think to manipulate by squeezing dollars out of dimes. This is where the problem lies. It is very seldom that the average person makes money because it involves a high cost of entry to get into something stable enough to pay dividends, or you just can't find the right companies to invest in until after the upswing. This is the common problem with any type of business or investing.

Think about it: real estate, t.v. shows, fashion.
1st stepn players benefit most because they are the ones able to caplitalize by building the emerging trends.
2nd step players who follow the uprising and play in the market on the climb upwards with the market early enough before the peak making good profits.
The unfortunate 3rd step players get in at the peak and find themselves caught in the downfall.

My strategy is simple. Invest in companies that are building equity, not blowing smoke. An idea is blowing smoke. An internet based company with no assets is more often than not, blowing smoke.By building equity through properly structured (US GAAP bookable), aquisitions similar to buying real estate, combined with long term corporate goals and viable growth expectations we create equity. Equity is not blowing smoke. The principles taught in every niche of investment, especially long term real estate, is about equity. Why equity? Because equity is worth money! What makes buying ownership in a company any different. Why not use those same principles similarly to qualify stocks in the open market for your portfolio?

Some of those principles as I've outlined below:
1. research your market and do your due dilligence on the stock
2. learn to read the financials
3. keep an eye on the team -control

Market Analysis:
Knowing the market is a very important part in your search for stock. Go backwards, learn the trends that lead to today, then look at current events, and learn the trends that are taking us into the future. Basic accounting knowledge is fundamental as an understanding of an income statement and a balance sheet are important in seeing the stock's value.

Corporate Analysis:
Keep an eye on the executive team. You want to know what each body in the company is doing to make the company better. Changes in the corporate structure are not necessarily bad, but too many changes for example can also cripple their effectiveness to grow.

Compliance and Audit:
Trading in the open market is not as complicated as many believed, although an enlightend sense and understanding of its inner workings is helpful. The stringent regulations by the SEC, the importance of US GAAP standard accounting for constantly audited financials, as well as the constant updating of company profile and executive members makes for great transparency and security.