How I Got Started in the Stock Market
Hello! My name is Craig Ferguson, the owner of this website. On this page, I am going to tell you my story about how buying a few shares of stock online turned into an obsession!
Yep, that's a picture of me.
Maybe one day I will grow some hair on that head of mine. Hey, ya can't blame a guy for hoping!
How it All Started
You won't believe how I got started in the stock market!
I was scrolling through the channels on TV when I came across CNBC. I knew that CNBC was a financial channel that talked about the stock market, but I had never really watched it before. All of it sounded so complicated. They were talking about company sales, earnings, p-e ratios, and looking at funny looking graphs. It was all just gibberish to me!
But, they just happened to be talking about Home Depot. I LOVED Home Depot. It was one of my favorite stores! So I listened and found out that the price of a share of stock in this company was really cheap. So then I thought, "Wow, I could buy some of that stock and own a part of my favorite store!"
I went online and found out that I could actually buy some stock through an online brokerage firm. I wouldn't have to go to a brokerage company down the street. Instead, I could just do it all on the internet. Cool! So that's what I did. I opened up a brokerage account and bought some shares of Home Depot.
I Was Going to be a Millionaire
That was too easy! So easy in fact, that I started buying shares in all kinds of companies. This was so much fun. I did it all right from my computer! Isn't technology great?
I had no idea what I was doing! I didn't know anything about the stock market, and I had never even looked at a stock chart before! But here is the funniest part...
We were in a bear market! At the time I didn't even know what a bear market was. I also didn't know that the bear market was only a couple of months away from ending and a new bull market was about to start! By sheer luck I had managed to load up on stocks right before a new bull market was about to begin!
I doubled my money on one of the first stocks that I bought.
It was unbelievable! This was like free money! Why hadn't I started doing this sooner? I was going to be a millionaire! Ever hear of the saying, "Never confuse brains with a bull market." That saying must have been written especially for me!
Then reality set in.
The market went into a correction and I ended up losing all of the money that I had made! How could this happen? I was "making so much money". What was going on? I had so many questions and I needed answers.
The Obsession Begins
I started buying books on the stock market, going to websites, and asking questions in forums. I was going to figure this stock market thing out if it killed me! I spent just about every waking moment trying to figure out how the stock market worked and how I could start making money again.
I learned mostly about the fundamentals of a company first (sales, earnings, etc). I quickly found out that most of this was a lie. I simply could not trust what the companies were saying about their financial information. It took so much time to sift through all the data and I didn't have access to the information that the "smart money" had access to.
Then, I saw a stock chart. What a turning point! Instead of trying to figure out which companies were good, and which were not, all I had to do was "follow the money". Since I couldn't compete with those that actually moved the market, I instead decided to just follow them. That is where technical analysis came in the picture.
Learning Technical Analysis
It took me a long time to learn the dynamics of supply and demand and how to interpret this on a stock chart. I'm not the smartest person in the world, but I am PERSISTENT! I went to many websites to see if someone would teach me how to trade stocks. I found many people anxious to help me - if I paid them thousands of dollars up front!
No thanks. If they figured it out, then I could figure it out (I told you I was persistent!). Some folks were willing to give advice on technical analysis and trading stocks, but I soon discovered that most of them really didn't know much more than I did! And most of them were not willing to give away their "secrets".
Then I said to myself, "As soon as I learn how to trade I'm going to teach other people how to do it so that they do not have to go through all of the time and frustration that I had to go through...
...and I am going to do it for free."
After years of studying, losing lots of money, and many sleepless nights, I finally found the keys that unlocked the doors to consistent profits in the stock market. The road to becoming a profitable trader was an emotional roller coaster ride! You see, I would make a lot of money but then lose it as fast as I had made it!
It was consistency that I was lacking. After I got that part figured out (HINT: It's all about money management), it was smooth sailing. Anyone can make money trading stocks, but it's making money consistently that is the most difficult part of learning how to trade stocks.
So here I am!
I found an unbeatable website company and created this site to help new traders learn about technical analysis and how to trade stocks.
I finally figured out how to become a profitable swing trader. Now, if I can just figure out how to grow some more hair on my head...