In Brazil we have a saying to explain when we really like something. Like this:
‘The stock market is a cachaça’
If you don't know, DANIEL, "cachaça" is a Brazilian run made from sugar cane. It’s the base for our famous capirinha (1-2 limes sliced in quarters, 1-2 tablespoons of sugar, 1 lime smashed in the cup you’re going to drink to extract the juice, 2 ounces of cachaca, and crushed ice).
We say something is a cachaca when we, borderline, are addicted to it. We tried, we want more.
Why am I saying that? Because the stock market is really a cachaca.
I worked in that industry for 12 years, in many roles. I traded bonds, I traded stocks, I jumped into the Private Equity sector. And trading stocks were addictive.
I know stocks don’t have anything to do with real estate, but what’s bad in wanting to make a little more money?
I’m sure that you are thinking in your head "It sounds cool when I listen to people talking about it, but I don’t know anything about it."
Well, let me tell you a secret.. you don’t have to know a lot.
You can start trading (not investing, this is completely different) knowing only 4 concepts:
Support
Resistance
Trend lines
Stop loss
Support is the lower price a asset tends to touch in a giving period.
Resistance is the higher price a asset tends to touch in a giving period.