"Why only 9 in 10 investors make a decent living trading the Stock Market and what every beginner must know about to pick winning stocks and pluck unfair profits - even in a down market..."
The Stock Market is in a bit of a mess right now. Many disgruntled and perplexed investors are pulling out... Thousand-point swings from red to green sweeps shareholders value overnight...
Investing in the Stock Market can be risky, time consuming, mentally draining and it keeps you constantly on your toes.
What you need, to be a successful investor, is an ability to decipher what's really going on in the market so that you can make intelligent decisions more often.
90% of the people always buy at the highest price. They don't really know when to buy - most investors are driven by newspaper headlines and rumors. While speculation can drive stock prices in the short term, it's long-term company earnings that determine a stocks gains or losses.
Most beginner investors forget that he Stock Market is made up of people - both buyers and sellers. Because people are predominantly driven by emotions, and emotions are stronger than reason, fear and greed move stock prices above and below a company's intrinsic value.
How to pick stocks that could make you rich
You must understand a company before investing in it.
Before you dive head-first into the market, there are a few things you should know about picking stocks. First, the market's performance as a whole is not necessarily a reflection of its individual stocks.
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 your newsagent has told you about a great investment opportunity.
Without the knowledge of investment, you are bound to lose. This is an age of information. Investors are using knowledge, techniques and strategies to make money. You must understand not only how you can make money but also how you can protect it.
Do you understand HOW the company MAKES money?
Too often people invest in a company they don't understand.
To be a successful investor, you must understand how the company makes sales and how it produces profits. You also need to understand the company's expenses and whether a company is able to withstand through economic cycles and competitive forces.
So, make sure that the company you're investigating has a proven track record.
Also, remember that even solid stocks can slip from time to time. The company's history is not indicative of a stock's future performance. Remember that stock prices are based on a company's earnings outlook, not its past performance.
You should also understand how much money the company owes to its creditors. If the company is in debt, much of the money they 'earn' will be used to pay off the debt. Buying stocks from these companies would be risky because of the instability of the company.
Never forget Warren Buffet's GOLDEN RULE
Warren Buffet, one of world's most successful investors, argues that there are only two rules to make money in stock market:
The first rule: Never lose your money.
The second rule: Never forget the first rule.
That's why you should stop investing if you are not sure of when to buy or sell. Getting the timing right will either make or break you as an investor.
Learn to cut your loses!
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 or you may lose your shirt.
If your pick doesn't work out the way you thought it would - get rid of it and move on!
Remember, it's never safe to gamble your money away on some company you don't even know. The basics of the stock market lie on the companies' background. Make sure you research to ensure your money is in the right hands.
Too many people are getting hurt by the Stock Market, many never recover. That's why on this page we have compiled much of the latest tips and ways to help you understand the Stock Market and pick big winners more often. Why not go over the free articles, guides and links to answer all your other questions you still have on being a successful Stock Market investor.
Safe Trading
PLEASE NOTE: All material provided on this website is provided for informational purposes only. You should always seek expert financial advice before making any serious investment decision.
Investing in the Stock Market can be risky, time consuming, mentally draining and it keeps you constantly on your toes.
What you need, to be a successful investor, is an ability to decipher what's really going on in the market so that you can make intelligent decisions more often.
90% of the people always buy at the highest price. They don't really know when to buy - most investors are driven by newspaper headlines and rumors. While speculation can drive stock prices in the short term, it's long-term company earnings that determine a stocks gains or losses.
Most beginner investors forget that he Stock Market is made up of people - both buyers and sellers. Because people are predominantly driven by emotions, and emotions are stronger than reason, fear and greed move stock prices above and below a company's intrinsic value.
How to pick stocks that could make you rich
You must understand a company before investing in it.
Before you dive head-first into the market, there are a few things you should know about picking stocks. First, the market's performance as a whole is not necessarily a reflection of its individual stocks.
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 your newsagent has told you about a great investment opportunity.
Without the knowledge of investment, you are bound to lose. This is an age of information. Investors are using knowledge, techniques and strategies to make money. You must understand not only how you can make money but also how you can protect it.
Do you understand HOW the company MAKES money?
Too often people invest in a company they don't understand.
To be a successful investor, you must understand how the company makes sales and how it produces profits. You also need to understand the company's expenses and whether a company is able to withstand through economic cycles and competitive forces.
So, make sure that the company you're investigating has a proven track record.
Also, remember that even solid stocks can slip from time to time. The company's history is not indicative of a stock's future performance. Remember that stock prices are based on a company's earnings outlook, not its past performance.
You should also understand how much money the company owes to its creditors. If the company is in debt, much of the money they 'earn' will be used to pay off the debt. Buying stocks from these companies would be risky because of the instability of the company.
Never forget Warren Buffet's GOLDEN RULE
Warren Buffet, one of world's most successful investors, argues that there are only two rules to make money in stock market:
The first rule: Never lose your money.
The second rule: Never forget the first rule.
That's why you should stop investing if you are not sure of when to buy or sell. Getting the timing right will either make or break you as an investor.
Learn to cut your loses!
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 or you may lose your shirt.
If your pick doesn't work out the way you thought it would - get rid of it and move on!
Remember, it's never safe to gamble your money away on some company you don't even know. The basics of the stock market lie on the companies' background. Make sure you research to ensure your money is in the right hands.
Too many people are getting hurt by the Stock Market, many never recover. That's why on this page we have compiled much of the latest tips and ways to help you understand the Stock Market and pick big winners more often. Why not go over the free articles, guides and links to answer all your other questions you still have on being a successful Stock Market investor.
Safe Trading
PLEASE NOTE: All material provided on this website is provided for informational purposes only. You should always seek expert financial advice before making any serious investment decision.