Stock market for beginners
Make it your goal to stay positive in a negative market, Time will tell but actually it is a great play as long as you do not invest more than you can lose. You need to find the right balance between the amount of risk you think you are willing to take, and the amount of risk you can actually stomach. Invest time and money into your trading education, and you will be rewarded in time with more successful investing.
Understanding the inner functions of your trading strategy(s) and proper placement of buy and sell orders will assist in limiting your risk exposure while maximizing your profit potential. One of the secrets to investing is learning your own trading method(s) that work for you. Some investors just follow blindly because they are unsure of what to do. They buy stocks based on half-truths and rumors and end up losing a lot of money. Some investors want to make money, but they want to make fast money. So they take short cuts and refuse to improve on their trading knowledge. Instead, they depend more on hearsay and their luck when it comes to investing.
There is lot more to learn! And the best way to do it is to start investing! Once you have your money in the market, you will start to understand things a whole lot better! If you have to learn, make small trades but always practice with real money. With real money, you feel the pinch when you lose, and you tend to learn the lessons faster.
Investors should always be vigilant, to stay one step ahead of the game by looking at all information sources. You’re not alone if you're feeling a little overwhelmed and Under-informed. Eventually you will make investment decisions with as many facts as you can assemble but you have to realize that you can never really know everything. One must creatively study the markets and try to devise an innovative trading plan.
Make sure you dig in and really examine the "facts about the companies" before you invest. Focus on high quality cash rich companies with strong balance sheets that have underperformed during periods of market over-exuberance and which have the upside potential to re-rate to their intrinsic values. Complete your due diligence. No one else will work harder than you as it's your own money you are investing.
Work joyfully and peacefully, knowing that right thoughts and right efforts will inevitable brings about right results.
Trading is not always easy. They say if it were easy, everyone would be doing it!