I have been investing in the stock market for the last four years. Four years of ups and downs. The ups and downs from which I learned lessons, from which I learned to correct my strategy, a technique that puts maximum potential on my side. You should not bet to win on the stock market, otherwise you can go to the casino. The stock market is all about possibilities.
Winning on the stock market is just a matter of ensuring that you have maximized the signals going one way before you decide to leave. There is a reason that good poker players also make good traders. They know how to think the possibilities.
They only know how to get into a big business, go all in when the odds are. And most of all, they know when an arm is lost and they know how to throw it no matter what stake is already in the game. Victory on the stock market rarely comes in the end. Some things that make a difference.
Some things but that only come after years of work and experience. It is this experience that allows you to create market spirit. My sense of the market I have decided to share it with you today in 9 rules, which will make you a better investor in the stock market after reading it. The hardest part in the stock market is not realizing that only 9 rules can make a difference, but stick to them.
To win on the stock market, aim for almost assured income
You don’t have to be rich overnight to win on the stock market, you’ll just be poor. Those who want to get rich fast in the stock market do not take any protection and place bets on a small cap. This is the surest way to waste. To win on the stock market, you need to take safe trades. He is the one who is most likely to go according to plan.
So for this, you need a plan for each of your trades. The plan allows you to know when to return, and especially leave when things go wrong. Do not take bets. The first rule is not to lose money. If it is too good to reduce the risk, it is better to throw a big bet than throw your hand and move on to the next one.
Do not diversify too much. It focuses on certain trades.
Having many actions means following many actions. It is time to perform several tasks to follow. It is impossible to follow more than 8 stocks (in a short-term perspective), so if you are not doing your profession you can be reactive to them. So there are no more than 8 stocks in your portfolio (15 if long) and you will see that you will be more responsive and your decisions will be more rational and quick, which will save you a lot of money. You need to know what you are doing.
Make big bets only when everyone is on your side
Many investors lose a lot of money in the stock market because they make large-scale bets. They estimate trend changes with a large amount.Once they are right to be against the trend, nine times they will be ruined. You can guess, it does not matter, on the contrary, it helps to have a contrary view, but under no circumstances should you be against bargaining with the majority of your money. A situation is created.
You should only make big bets when there is no doubt that all the signs are in your direction. Again, remember rule number 1, which is not to lose money and invest only when possible with many signs. The stock market is not about the senses. To become a master trader requires rigor and discipline.
The best investment decision is often to decide to do nothing. Avoid making big bets until the signals are with you.
Biggest hits don’t happen overnight
It is impossible to get rich in the stock market in one day. The positions that make the most money are not the shortest terms.Conversely, knowing that sitting on both hands will be your biggest hit. Most investors often get a nugget, but never keep it long enough to earn all that it has to make. They often sell it.
You need to learn to trust your analysis and follow the letter and never sell when a sign is not asking you to sell. Like poker, having a big hand makes no sense if you don’t know how to play it to make it as profitable as possible.
Equal on the stock market, when you find a nugget, the thing that will make you prosper will be knowing how to keep it for the longest time. The overall performance of one year on the stock market is mainly performed on some trades. Do not miss them and sit on both hands more often.
Do not try to make money. Follow the strategy, the money will come by itself.
Many investors want to make money first and foremost. This greed drives his emotions to carry on his strategy. They then make bad decisions instead of following their strategy. To make money on the stock market, it is silly to say, but you have to avoid worrying about it at all costs.
It is important to follow a strategy, having the discipline to trust that strategy and taking less time to realize it, money will flow. The moment you think too much about money with every trade, you will make avoidable mistakes.
To make money in the stock market, learn not to lose money
It always comes back to one rule: the first rule of making money on the stock market and not losing it. With experience you understand what to do to not lose money. This is the most important. Understand what to avoid altogether.Often 80% of our losses are from the same mistakes that we make. You have to know what’s wrong.
By focusing on avoiding repeating the same mistakes, you avoid taking a stand on a lame duck. At least, as you learn to know what is wrong and what not to do, you get a sense of what it takes to make money.
Winning on the stock market is an art that masters your psychology
The trader’s worst enemies are four: ignorance, greed, fear, hope. These 4 enemies will ruin your trading account in no time. You are just a man and you will face these 4 enemies. Your weapon to beat them? Your discipline to implement your strategy at all times.
Learn from your losses
I consider the money I lose in the stock market with each mistake I make and eventually I have to pay Mr. Market to teach me something else. What’s unbearable is paying multiple times for the same lesson. What kills a trading account is not 50 mistakes, but one mistake, repeated 50 times. Learn from your mistakes, consider paying yourself to learn. So keep a journal and make sure you do not repeat the same mistake over and over.
Stock market is an eternal restart
There is much to learn from an investor in the 1920s today. The stock market has been the same throughout history, simply because our father’s mistakes will be our mistakes.
To win on the stock market, you have to be able to learn from the past, understand history, and therefore use it to avoid making the same mistakes. Because in the end it is all controlled by humans whose faults are natural and therefore repeated throughout history.
I would love for you to comment on what your experience on the stock market has taught you?