Let’s talk about the most powerful financial tool ever.

My rules

  • Never buy a stock without looking at a chart
  • Don’t listen to anybody

Investment 🌱

  • Follow the DCA strategy
  • Building one index fund portfolio
  • Building one dividend portfolio

Trading 🏌️‍♂️

  • Sells 1/4 of my position if stocks moves +/-20%
  • Use indicators to decide to what to do
  • Use order and stop limit

Before

The young Max did not want to believe in this market which in fact drives our society. Our economy is built on this system which collapsed many times and is still here today. Interesting isn’t ?

I got lucky to join a startup offering stocks options that performed incredibly well in the market which begins to hit my curiosity.

After

Most people see the stock market as a complex world which they feel too dumb to understand.

Let’s take a look at how this works and how you can leverage this tool to increase your wealth.

Wealth: an abundance of valuable possessions or money.

What does it mean to buy a stock?

This means you own a part of a company.

What stocks can you buy?

Many options exist today. I call them financial products. See them as something you would buy at a shop except it could bring you money over time. Here a small list of the things you can buy on the stock market.

Stocks

Stocks are securities that represent an ownership share in a company. For companies, issuing stock is a way to raise money to grow and invest in their business. For investors, stocks are a way to grow their money and outpace inflation over time.

ETFs

An Exchange-Traded Fund (ETF) is a collection of stocks or bonds that may be purchased for one price.

Bonds

A bond represents a loan from the buyer (you) to the issuer of the bond.

Dividends

A dividend is a distribution of a company’s profit to shareholders.

Buy consistently for a long period of time, it’s called the dollar cost averaging strategy.

Reit

A real estate investment trust is a company that owns, operates, or finances income-generating real estate. It’s a good way for young investor to invest in the real estate market without big a capital.

Options

TODO

Where can you buy financial assets?

You would need a brokerage account to start investing in the stock market.

Broker: Company that charges a fee or commission for executing buy and sell orders submitted by an investor.

Here a list of some options we have in Canada:

Reading charts

You need to use indicators when you want to buy or sell a stock. Here some basic ones I’m using:

Indicator Definition
RSI Tells you when a stock is hot or cold
MA(20) Tells you when to buy or sell a stock
MA(200) Help you determine your target (average 200 days stock’s price)

It you want to gamble, take calculated risks when the current price is trading near previous support levels.