6 Tips that Will Make You a Better Stock Trader
Tips that Will Make You a Better Stock Trader
I once started investing in my early 20s and I didn’t have much money to invest. I only started buying stocks using the $10,000 I have saved through the years and I end up earning more than $100,000 after just two years of stock trading.
If you want to know more about how I did it, please read through the rest of the article. As a disclaimer, these are from my experiences and the tips that are outlined here may not be the best for your style of trading.
Be that as it may, I will still impart the tips that have made me successful in the field. So, let’s get started without any delay!
1. Invest in Penny Stocks
If you are still testing the waters and you are a beginner, I suggest that you invest in penny stocks right after open a stock broker account. These stocks are different from your traditional stocks in that they’re highly volatile which means it has a huge potential for growth, it is relatively inexpensive, and they are pretty easy to get.
Just note that because of its nature, you might end up not enjoying huge profits. Still, this is a good place to start.
2. Enjoy Your Success and Learn from Your Failures
It is always a nice feeling if you have done amazing trades. However, real success comes from learning from your failures. Heck, even the richest people also did some blunders along the way as well.
In stock trading, you can pretty much buy the stocks that you want- even the ones that are undervalued or overvalued. And, you will also trade your shares in a way that you will lose money as well.
This is actually quite common in stock market trading and it shouldn’t be a big deal at all. But, people have different thresholds- one might be okay with the loss while others feel really bad about it.
Still, there are some lessons that you can learn from your mistakes. Just be sure to learn from your experience so that it will not happen again.
3. Small Gains= Bigger Profits
The problem with some people is that they think you should only trade by the millions, but that is actually not the case if you want to get rich.
You have to also enjoy the smaller gains because over time, they’re going to be the ones who will let you earn money by the millions (or even billions!).
4. It is Not Guesswork
Stock Market Trading is no guesswork; it involves a lot of planning and strategy to help you succeed. Without doing the proper research and analysis and you’re just leaving it all to luck, then you’re going to have a hard time becoming rich. The stock market favors the people who have done their homework.
5. Cut Your Losses Immediately
You won’t always win the blockbuster trades all the time. In fact, you might not win at all! But in those times, make sure that you cut your losses quickly so that you can get back in the game and start to earn more profit.
6. Patience is Key
The thing about being successful in stock market trading is that you do not have to do trades every day. In fact, if you follow the concept of buying and holding your shares, you’re going to end up earning more. Only trade when it is the right time and you can only tell that if you look at the market on a consistent basis.