Stock Market Tips – Prevent Your Stock Picks From Going Bust

It’s easy to make money on the stock market, right? All you have to do is buy good stocks and sell at the correct time. The experts will tell you that the stock market is a sure thing – a guaranteed money maker. Well if it’s so easy, then why do so many in the stock market game lose money? History has proven over time that there are a few common mistakes by traders that cause them to pick losing stocks and here they are:

1. Refusing To Take A Small Loss

You’ve heard the saying “You Can’t Win Them All”. This holds very true with picking stocks. Even the most proficient of traders take their share of hits. What makes them come out on top in the long run is they know when to fold. It’s okay to be wrong, just don’t stay wrong for too long on any particular pick. If your pick doesn’t work out the way you thought it would – get rid of it and move on! Traders need to have the mindset of a relief picture in baseball. If you get shelled today, you get back out there tomorrow and start over.

2. Panic Selling

As stated above, sometimes you just have to bite the bullet and sell a stock that’s a loser but make sure you don’t jump the gun. You should never sell just because you’re scared. You should sell if it makes rational, logical sense to do so. Too many people sell stocks because the market had a bad day and they’re just plain afraid it will go even lower the next day. They panic and sell and then kick themselves when the stock shoots back up.

3. Not Doing Your Homework

To be a successful trader, you simply must do your research. You need some type of logical system in place for picking your stocks. This isn’t the race track and you cannot allow yourself to pick a stock on a whim or because Joe down at the coffee shop told you that a certain stock is a sure winner.

4. Picking Stocks With Emotion

This is the biggest mistake of all. Fear and greed are part of human nature and this is the hardest obstacle to overcome when picking stocks. If you can eliminate emotions from your trading, you have just won half the battle.

These are just some of the things to keep in mind when picking stocks. There are many others, but just using common logical sense and having a set system in place will have you picking more winners and consistently pulling in the profits.

When Should You Invest In The Stock Market?

Share market is a place where you can buy or sell shares. If you think that you have all the proper knowledge of the market and can earn good profit then you can always get to earn good profit. You have to keep in mind that if you do not have much idea where and when should you invest in the stock market, then you might have to incur huge losses on your invested money in the market. You have to see whether you can take some risks in the market. You should also be very patient when you wish to invest in shares and stocks. You cannot invest all your money without any proper research. If you do so then you might have to bang your head after losing quite a lot of money in the market. There are many different types of stocks that you can find in the market. You have to make sure that you know the working as well as functioning of the stock market. This would help you in getting huge returns from the market. If you have any doubts or queries on your mind then you should try to clear off as soon as possible. This would help you get the best stocks in the market.

 
Know the functioning of different concepts
You have to try to get some experts who can help you in choosing the right stocks for you. You can also visit different websites where you can find all the latest information of the stocks. By doing so you can also gain good knowledge of the proper timing to invest your hard earned cash in the market. You can also go for investing in day trading but you should make yourself clear whether there is any maximum risk involved in the stock market. If you feel that it would be a bit safe for you to invest in this type of trading then you can always go for it. There are some people who get influenced by their ignorant friends who do not have much idea about the market. So at the end of the day you have to lose all your money in the market investing in the non profitable stocks. Therefore you should be very serious because you cannot tend to lose your money in the market investing in the wrong stocks. You need to be clear of certain important things like stock charts, tables…etc in order to gain good insight of the market.
 
Follow your investment goal
You need to follow your investment goals in order to fulfill your dreams. You have to decide whether you wish to invest your money for short term or long term goals. You can also choose to trade stocks online with the help of online share trading. Here you do not have to go out from your place to get your stocks invested in the market. So every step that you take should help you get the maximum profit. You should also be familiar with the stocks and know how they are performing in the market. This would really help you get all the accurate information of your invested stocks. You should be able to put your best foot forward in order to reap the maximum benefits from the market. Make sure you conduct a good study of the market as this would really help you getting the right profits for you without any problem. Therefore do not make any haste in making your investment in the stock market rather try to analyze the market well and then invest accordingly.
 
Clear all your concepts
You should be able to clear off all your concepts of the market. If you happen to make even a slight mistake then you would find that you have committed a blunder. So try to gather some good knowledge and make the most profit out of your invested money in the market. The more you are able to gain knowledge in the market, the more profit you could earn from the stock market.
 
Thus you have come to know where and when should you invest in the stock market.

Stock Market Advice For Picking Hot Stocks

The best Stock Market advice you will ever read is to learn from mistakes when someone else has made them. So, this stock market advice list I made a list of some of the most common trading mistakes that are made. Even I`ve made some of these. If you have already made some of the mistakes, you can rest assured that you aren`t alone in making them. If you haven`t made them, then here`s a way to get around having to learn by making the mistakes yourself, by reading my stock market advice list.

The Stock Market advice tip #1, and worst mistake that people make is that they believe trading is the easy answer, a way to get rich quickly. People will often expect to become wizards in the market overnight, but they fail to realize that trading is like any profession; you must learn how to do it first.

For example, would you attend a weekend doctor`s seminar and expect to conduct heart surgery on Monday? Of course not! I am shocked at what people expect when they go to a weekend trading seminar. They think they will create wealth without having to work, invest or think, and it just doesn`t happen that way.

After treating trading like a get rich quick scheme, my next stock market advice tip #2 and most common mistake, is to approach the market without a plan. Without a trading plan, traders approach the market in an inconsistent manner. One day they trade stocks and the next they trade the foreign exchange. Or, they may use one set of indicators one day, and the next day they will throw these indicators out the window and take on a completely new set. Without a consistent approach, the only thing governing their trading decisions is really emotions, and that will doom them to failure.

If a new trader has managed to skip these last two mistakes, they often fall down when they try to go it alone. This is my Stock Market advice #3, all traders should find themselves a coach, or a mentor. Someone who can help them spot the errors in their system that they might not have noticed. An outside point of view can help you avoid other costly mistakes, and greatly increase your profits.

These are some common and quite basic mistakes. The next errors I`ll mention are ones that are just as prevalent in the trading industry, but they often occur once traders have been around for a while. I have some personal experience with these mistakes. Let`s call this stock market advice list, the three most expensive mistakes I`ve made.

My stock market advice mistake tip #4, or the first most expensive mistake, I made was to search for the “Holy Grail” of trading. This was an incredible waste of both time and money. During the first three years of my trading career, I spent over $25,677 on a library full of books, videos and seminars as well as spending thousands of hours in search of the perfect trading methods. Honestly, 95% of what I bought was pure junk… I should have listened to my mentor earlier and realized the “Holy Grail” of trading is simply excellent money management!

My stock market advice mistake tip #5 or the second most expensive mistake I made was not having a predefined exit point. Early in my trading career, I remember trading a stock I thought had a high percentage chance of rising. I was too confident. I fully leveraged the position. Unfortunately, when things did not go as planned, I did not know when to exit, and was paralysed. I kept rationalizing why I should hold onto that stock. As the stock continued to fall, I made more and more excuses. At the very end, I remember thinking, “I can`t take it anymore!”

I sold out. That, of course, was the point the stock turned.

I learned two very valuable lessons that day. First, always have your exit points predefined. Second, big losses once started out as small losses, and it is much easier to take a small loss than a big one.

My Stock Market advice mistake tip #6 or the last most expensive mistake, I made is not one that took money out of my pocket; instead it was a mistake that made me leave money on the table. In fact, this reoccurring mistake cost me big.

Early on, I remember selling positions as soon as they showed a profit. I would not let my profits run, as I was too afraid to give the money back to the market. I figured the profit as mine. The result was that I ended up selling the stocks that were making me money.

It wasn`t until my mentor explained to me that when you are trading, and showing a profit, that is the point where you should be adding to the position, not closing it out, that I began to understand what I was doing. Once I started following his advice, my trading profits soared.

Trading is not an easy profession, but it give you great rewards. Avoid these common errors on my Stock Market advice list, create a simple, well-designed trading system, and learn your market. If you take the time to study the market, and learn from other`s mistakes as well as your own, you will become a successful trader.