Learn Stock Market Trading

1. Cut your losses. Let your profit run.

Always remember to set stop loss point.

2. Learn from your losses.

Make each loss as a lesson to enrich your investment experience.

3. Don’t be greedy.

People always turn their large profits into losses because of greedy.

4. Never leverage in a losing position.

Most of people try to leverage in losing position. It’s a BAD idea.

5. Observing.

Standing aside is a good idea when you cannot judge which the coming direction is.

6. New mindset to beat the market.

Nowadays, fast money is the new market trend, long term trading already out dated.

7. Discipline and patience is the key to win.

Don’t chase high if you are not sure when will the market reverse.

8. Apply only few strategies to suit different stocks.

Using too many strategies will make you confuse.

9. Narrow down your focus.

Do not try to focus on too many stocks at once. Limit to 6-7 counters.

10. Find a good mentor.

A good mentor is the golden key to your investment success.

Dr. Steven Lee (Ph.D) is # 1 Best-Selling Author of Creating Wealth in Stock Market

Get your free ebook “Money Fish” from http://www.DrStevenLee.com

For some people, investing in the stock market involves risks that they are not willing to take, but stock market investing does not have to require great risk to provide a great return on investment. Successfully investing in the stock market takes a long term, disciplined approach. Buying a stock, only to sell it when it increases slightly in value is taking an unneeded risk with your money. All investment in the stock market involves some risk, but with research and careful investment you can minimize that risk.

The right research can help you make an informed decision. An informed decision can help you make the right choice when you are seeking a higher return in investment that is available in a passbook savings account, mutual fund or certificate of deposit.

The main reason to invest your money in the stock market is to make a return on your investment. With sound investment decisions you can receive a steady income that increases every quarter. Once you have established your short and long term goals, it is easier to make the correct decisions to reach those goals.

To ensure a steady cash income, each stock that you own must do two things. The first thing that the stock must do is provide quarterly cash dividends. The second thing the stock must do is take the cash dividend and reinvest it by buying more shares of the stock. By providing cash dividends and reinvestment options, your stock portfolio will grow each quarter, providing you with an increasingly high cash income.

Of those companies that provide cash dividends, you must look for the ones that have a proven history of providing higher cash dividends every year. By providing higher yearly cash dividends and reinvesting those dividends, you are helping your portfolio to grow at a rate that will help combat the effects on inflation. Resist the temptation to withdraw your dividends to provide for household expenses. Withdrawing your dividends significantly impairs your plan’s ability to make your momey grow.

Another way to help your portfolio grow is by choosing to work with companies that are commission-free. Quarterly commissions can eat into your dividends, reducing the amount of money that is able to be reinvested and diminishing the number of stocks that your dividends can purchase. Each share that your dividends purchase provides extra income that can in turn provide more dividends. Commissions can break this positive investment cycle.

You can greatly minimize the effects of stock market price fluctuations by wisely investing in a long term stock plan. By avoiding commission fees and letting your dividends work for you by reinvesting in additional stock your stock investment plan can provide you with an increasing cash income without the same amount of risk that is traditionally associate with stock market investments.

Have you decided to invest in the stock market? Consider the following 7 pointers when making your investments.
1. Have a solid comprehension of basic economic principals.
Before you get started, you should understand basic principals and laws of economics. The stock market closely follows the law of supply and demand. For example, when there is a large demand for the stock of a certain company, the cost of its stock will increase along with the demand. However, if there are more stock available for sale than there are buyers, the unit price of that company stock will decrease.
2. Learn about prospective companies you want to invest in.
Do your homework before you invest in prospective companies. Read the company annual report and find out about their products, operations, services and basic business track record. This information gives you an idea of how stable the company is and whether they can deliver on their promise to offer profits to investors.
3. Select companies with staying power.
There are so many companies that exist in today’s stock market, selecting becomes a major decision for beginning investors. Relatively stable companies and business are owned by the government, unless there is a political revolution or crisis going on. Gasoline companies and telecommunications companies are usually profitable and stable because there is a constant demand for their services and products. While IT companies are rapidly growing in today’s stock market, there are so many of them it may be a challenge to check their profiles to exercise reasonable care before investing. Before putting your money into an IT company, verify their track record and make sure they are stable and profitable for a minimum of 10 years.
4. Keep an eye on the news.
Guesswork is completely ineffective when it comes to investing in the stock market. Good intuition and solid decision-making come from learning about global and local news both politically and economically. When you watch the news, make sure to keep track of the industry your company is in. Even stable companies may go bankrupt or have a major blow that will bring them down.
5. Don’t put all your eggs in one basket.
Avoid investing in just one company and spread out your stock investments to several businesses. When you have stock concentrated in just one company, you have a greater chance of losing it all. When you spread out your investments over several companies, those earning profits can cushion the ones that not not as profitable.
6. Stockbrokers aren’t the final word.
A stock broker is actually gambling with your money so you need to do your own homework. Dishonest brokers can take advantage of investors who do not fully comprehend how the stock market works.
7. Greed is your enemy.
While everyone is eager to make profits in the stock market, an investor loses their sense of reason when they are fueled by greed. A money hungry investor may forget to check on economic rumors and spontaneously decide to sell or buy with the thought of making major profits and then lose it all.
Putting your money in the stock market can of course be risky, but the above tips should help point you in the right direction.