Stock Market: First step

My first match with the stock market led me into a frenzied research into balancing tax/gain/dividend/comission. 30 hours of research, a change of stock broker and 6 months later, I’ve earned my first $90 (3%) off Coca Cola with my very first investment. Coke was chosen because of its stability, so I don’t have to understand the company’s income statement, operations or the product they sell. All I have to do is look at the waveform and perdict the next wave.

My next investment is that of Nintendo and it was made out of an impulse. A gamer’s hunch. Since I’ve been in contact with games all my life, I have a 6th sense on what’s going to hit and what’s not. However, Nintendo is the only company that hasn’t diversified their path to several twisted ones that a hit with one product doesn’t necessarilly bring the stock price up. Nintendo is the perfect candidate and with the release date of Wii coming soon, I knew it’d go up, although it was already very high when I looked at it. I bought it against the judgement of my reasoning. The original plan is to stick it out till release date, but its stock has reached an all time high in its company history already. I am torn between reason and greed… Still, even now, I’d enjoy a $500 gain out of a 1500 initial investment… a 33% increase with only 5 hours of research this time. Things are looking good.

Now, I just need to experience a loss, so I can familiar myself on how to decide when to abandon something.