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Welcome skii!
Well, there are a few ways to do it. People generally approach the stock market with methods that best fit their personality. I'm going to trade and invest much differently than other people here. However, that doesn't mean that I, or they, are not profitable. Just means we're different.
One of the things affecting those differences, is how much risk you can tolerate. The greater the reward, the greater the risk. Heck, in the Futures arena, there are possibilities for losing more than you risk. For example, you could lay down $1300 and lose $60,000.00. But the reward possibility is absolutely unreal. Just a matter of how much risk you're willing to undertake for the reward. Based on that concept, people trade the stock market differently.
For example, I do three things with the markets in general, and two of them involve the stock market.
1) I trade stocks on what's termed 'swing trading'. I only do this about 15% of the time. A swing trade is a buying a stock low, selling it high in the span of 3 to 5 days.
2) I invest in stocks for the long term, using various methods combined together in a hybrid amalgum that I created. This is the majority of what I do in the stock market, and takes up the remaining 85% of my activity. My method includes a) dividend investing, b) accumulation investing, c) seasonal tendency investing and d) dollar based investing. My method isn't really any one of those particular methods, but a combination of all of them.
I will say this: If you are that interested in this industry, learn all you can. Soak up information. Try not to get lost in too many details though, and try to see the overall, general theory of whatever it is you are learning. But if this is what you find out you love to do? Welcome aboard. I love waking up to work in the morning. And there is a lot to be said for that.
Honestly, any one of those topics I discussed to my particular methodology however? We could talk for hours on, but I'm not too sure where you're at in your market education, so I'll cut this short.
Any questions, feel FREE to ask anyone here.
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