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4 Things to Know Before Ever Investing in Stocks

4 Things to Know Before Ever Investing in Stocks

Many people hear about the stock market for the first time and assume that stocks are a magical way to turn money into more money. While this may be true for some people, for a vast majority of others, it is just a way to turn money into no money. This is not because investing is the same as gambling, but rather investing without knowing what you are doing is the same as gambling.

Many investors lose money every year because they don’t understand basic investing principles. The sad part is, it doesn’t have to be that way. Some people are able to make profits year after year by employing smart, safe investing techniques and sticking to it. Here are four things you should know before buying a single share of stock:

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Never invest short-term

Many new investors make the mistake of assuming that they can pull out of the stock market at any time. While this is technically true, it is not totally realistic.[1] If you put money into stocks with the plan to sell in a few weeks, or even months, you may find that at the point where you would like to sell your shares, the stock has lost half of its value. This means you could technically pull out, but you will lose half your investment by doing so.

The key to avoid this is to invest for the long-term. Never use money that you will need to pull out in the next few years. You can avoid incredibly stressful and financially devastating results by doing so.

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Stock movements are not random

Many people assume that the prices of individual stocks change on a day-to-day basis completely randomly. This is not the case. In fact, there are many patterns to look for when looking at the price of a stock. Often you will see a stock price follow the same pattern for months, or even years. This can help you identify when it is a good time to purchase shares versus when it is a bad time to purchase shares.

This is called technical analysis and investors do it every single day. Before investing, you should read at least a few books about technical analysis to make sure you understand what to look for when you are looking at stock prices.

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Patience

Many people just getting started in stocks feel an unnecessary sense of urgency. They seem to feel as if they are missing out on something and if they don’t get in on a certain company’s stock now, they will forever miss their opportunity. This is far from true. There are opportunities on the stock market every single day. Don’t even start looking for these opportunities until you know exactly what you are looking for and how to tell if you are getting a good deal or not.

Don’t rush into buying stocks ever.[2] This will inevitably lead to heartache and lost money. If you have any misgivings about the purchase, pull out and wait until something you feel great about comes along.

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Try virtual trading

The best way to learn the stock market is through virtual stock exchange. There are a lot of sites that offer virtual trading and you can use those to be able to play with fake money and decide if you have what it takes to really make money on the stock market. Once you have a good system with fake money that seems to work every time, you can start putting a small amount of real money into the stock market.

Above all, play it safe. The stock market is real money. Don’t turn it into gambling. Do your research, take courses, talk to experts, and only then should your hard-earned money be put into markets.

Reference

[1] Business Insider: 25 Things To Know About Investing by 25
[2] Investopedia: Patience Is A Trader’s Virtue

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Spencer Mecham

Personal Finance Coach, Digital Marketer

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Last Updated on November 5, 2019

How to Memorize a Speech the Smart Way

How to Memorize a Speech the Smart Way

Did you know that 75% of the population suffers from glossophobia? That scary sounding word is one of the most common phobia’s in the world, fear of public speaking.

I’ll bet even as you are reading this, you are getting nervous thinking about giving a speech.

I have got good news for you. In this article, I will share with you a step by step method on how to memorize a speech the smart way. Once you have this method down, your confidence in yourself to deliver a successful speech will increase substantially. Read on to feel well prepared the next time you have to memorize and deliver a speech.

Common Mistakes of Memorizing a Speech

Before we get to the actual process of how to memorize a speech the smart way, let’s look at the two most common mistakes many of us tend to make while preparing for a speech.

Complete Memorization

In an attempt to ensure they remember every detail, many people aim to completely memorize their speech. They practice it over and over until they have every single word burned into their brain.

In many ways, this is understandable because most of us are naturally frightened of having to give a speech. When the time comes, we want to be completely and totally prepared and not make any mistakes.

While this makes a lot of sense, it also comes with its own negative side. The downside to having your speech memorized word for word is that you sound like a robot when delivering the speech. You become so focused on remembering every single part that you lose the ability to inflect your speech to varying degrees, and free form the talk a bit when the situation warrants.

Lack of Preparation

The other side of the coin to complete memorization is people who don’t prepare enough. Because they don’t want to come off sounding like a robot, they decide they will mostly “wing it”.

Sometimes they will write a few main points down on a piece of paper to remind themselves. They figure once they get going, the details will somehow fill themselves in under the big talking points while they are doing the talking.

The problem is that unless this is a topic you know inside and out and have spoken on it many times, you’ll wind up missing key points. It’s almost a given that as soon as you are done with your speech, you’ll remember many things you should have brought up while talking.

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There’s a good balance to be had between over and under preparing. Let’s now look at how to memorize a speech the smart way.

How to Memorize a Speech (Step-by-Step Guide)

1. Write Out Your Speech

The first step in the process is to simply write out your speech.

Many people like to write out the entire speech. Other people are more inclined to write their speech outline style. Whichever way your brain works best is the way you should write your speech.

Personally, I like to break things down into the primary points I want to make, and then back up each major point with several details. Because my mind works this way, I tend to write out speeches, and articles for that matter, by doing an outline.

Once I have the outline completed, I will then fill in several bullet points to back up each big topic.

For instance, if I was going to give a speech on how to get in better shape my outline would look something like this:

Benefits of being in shape

  • Point #1
  • Point #2
  • Point #3

Exercise

  • Point #1
  • Point #2
  • Point #3

Diet

  • Point #1
  • Point #2
  • Point #3

Rest and hydration

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  • Point #1
  • Point #2
  • Point #3

ConclusionNo need for points here, just a few sentences wrapping things up.

As you might imagine, this step typically is the hardest because it’s not only the first step but it also involves the initial creation of the speech.

2. Rehearse Your Speech

Now that you’ve written your speech, or outline, it’s time to start saying it out loud. It’s completely fine to simply read what you’ve written line by line at this point. What you are working on doing is getting the outline and getting a feel for the speech.

If you’ve written the entire speech out, you’ll be editing it while you are rehearsing it. Many times as we say things out loud, we realize that what we wrote needs to be changed and altered. This is how we work towards having a well rounded and smooth speech. Feel free to change things as needed while you are rehearsing your speech.

If you are like me and you’ve written the outline, this is where some of the supporting bullet points will begin to come out. Normally, I will have written several bullet points under each main topic. But as I say it out loud, I will begin to fill in more and more details. I might scratch certain bullet points and add others. I might think of something new at this stage while I am listening to myself and want to add it.

The key to remember here is that you laying the foundation for your awesome speech. At this point, it’s a work in progress, you are getting the key pieces in place.

3. Memorize the Bigger Parts

As you are rehearsing your speech, you want to focus on memorizing the bigger parts, or the main points.

Going back to my example of how to get in better shape, I’d want to ensure I have memorized my primary points. These include the benefits of being in shape, exercise, diet, rest and hydration, and the conclusion. These are the main points I want to make and I will then fill in further details. I’ve got to ensure I know these very well first and foremost.

By practicing your major points, you are building the framework for your speech. After you have this solid outline in place, you’ll continue by adding in the details to round things out.

4. Fill In the Details

Now that you have the big chunks memorized, it’s time to work on memorizing the details. These detail points will provide support and context for your major points. You can work on this all at once or break it down to the details that support each major point.

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For example, the details I might have under the “exercise” big point might include such things as cardio, weights, how many times a week to exercise, how long to actually exercise, and several examples of actual exercises. In this example, I have 5 detail points to memorize to support my major point of “exercise”.

It’s a good idea to test yourself regularly as you are rehearsing your speech. Ask yourself:

What are the 5 detail points I want to talk about that support my 3rd main point?

You need to be able to fire those off quickly. Until you can do this, you won’t be able to associate each of the details with the main point.

You have to be able to have them grouped together in your mind so that it comes out naturally in your speech. So that when you think of main point #2, you automatically think of the 4 supporting details associated with it.

Keep working at this stage until you can run through your speech completely several times and remember all of your big points and the supporting details.

Once you can do that with relative ease, it will be time for the final step, working on your delivery.

5. Work on Your Delivery

You’ve got the bulk of the work done now. You’ve written your speech and rehearsed enough times to have not only your main points memorized but also your supporting details. In short, you should have your speech almost done.

There’s one more step in how to memorize a speech the smart way. The final component is to work on how you deliver your speech.

For the most part, you can go give your speech now. After all, you have it memorized. If you want to ensure you do it right, you’ll want to hone how you are delivering your speech.

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You work on your delivery by rehearsing and running through it a number of times and making tweaks along the way. These tweaks or changes may be are’s where you’d want to pause for effect.

If you’ve found you have used one word 5 times in one paragraph, you might want to swap it out for a similar word a few times to keep it fresh.

Sometimes while working on this part, I’ve thought of a great story that’s happened to me that I can incorporate to make my point even better.

When you work on your delivery, you are basically giving your speech a personality as well.

The Bottom Line

And there you have it, a step by step approach on how to memorize a speech the smart way.

The next time you are asked to give a speech don’t let glossophobia rear its familiar head. Instead, remember this easy to use guide to help craft a powerful speech.

Using the method shown here will help you deliver your next speech with increased confidence.

More About Public Speaking

Featured photo credit: Anna Sullivan via unsplash.com

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