The Stock Market – Your Second Job

Man consider the stock market to be a source of passive income.

I do not.

It can be manipulated into passive income by investing in mutual funds or allowing your stock broker to take care of your investments.
Because you would be putting forth no or little effort, it would be considered passive income.

But if you choose to invest on your own- you had better be making that active income.

In the entries to come we will go over different tools and necessary methods to use with investing, but today we will be covering the time consuming aspect.  Your “homework“, as Jim Cramer puts it, should take up at least one hour per stock that you own per week.

So if you own shares of Google, TBSI, Boeing, MNKD, and WaMu(haha) then you should be doing five hours of homework per week.

We will go deeper into what is expected of your homework in the weeks to come, but it should include things like researching management, listening and watching press conferences, keeping track of the multiple, etc.

By managing these sorts of issues you make the giant leap from being a hobbyist to creating what I consider a second job.

But by doing so you are becoming an educated investor, prepared for both the bull and the bear.  People are making money in the good and the bad markets- and the only thing that distinguished them from you is that they educate themselves.
Why not you?