There are a number of things that you should follow so that you can give yourself the best chance of success in the stock market; you need a trading strategy, you should commit yourself to some time each week to monitor your investments, you need patience and discipline and finally you will need knowledge of what it is you are investing in.
So let's examine at these attributes in a bit more detail.
In terms of increasing your knowledge in the relevant areas you should examine where you want to be and then look at how you are going to get there and work on filling any gaps in your knowledge along the way.
You can great resources on the web, in books and from experienced people in the know.
To ensure success you need to give up some of your time each week to practice what you have learnt and to improve.
Once you're worked out where you want to be then you should work out a plan on how to get there, for e.
g.
time spent learning about the stock market and then to monitor the performance of your investments and what to do if the investment does not go according to plan.
You need to make a choice your investment vehicle whether it is stocks, bonds, options, futures etc based on the level of commitment you are prepared to give as some require a much more hands approach and others require very little attention.
Perhaps the hardest skill to master would be discipline.
A proven, profitable trading strategy is actually not that difficult to find but having the discipline to implement it exactly and not let you emotions take over is the hard part.
The two emotions that play the biggest role are fear and greed and whichever is stronger on the day determines whether the stock price finished higher or lower.
Patience is also vital because impatience can cause you to exit a trade too early and miss out on profits or enter before there is a clear signal and lose money Always when starting out, start small and set yourself goals to reach that way if you make a mistake you don't end up wiping out all your trading capital with one big loss..
So let's examine at these attributes in a bit more detail.
In terms of increasing your knowledge in the relevant areas you should examine where you want to be and then look at how you are going to get there and work on filling any gaps in your knowledge along the way.
You can great resources on the web, in books and from experienced people in the know.
To ensure success you need to give up some of your time each week to practice what you have learnt and to improve.
Once you're worked out where you want to be then you should work out a plan on how to get there, for e.
g.
time spent learning about the stock market and then to monitor the performance of your investments and what to do if the investment does not go according to plan.
You need to make a choice your investment vehicle whether it is stocks, bonds, options, futures etc based on the level of commitment you are prepared to give as some require a much more hands approach and others require very little attention.
Perhaps the hardest skill to master would be discipline.
A proven, profitable trading strategy is actually not that difficult to find but having the discipline to implement it exactly and not let you emotions take over is the hard part.
The two emotions that play the biggest role are fear and greed and whichever is stronger on the day determines whether the stock price finished higher or lower.
Patience is also vital because impatience can cause you to exit a trade too early and miss out on profits or enter before there is a clear signal and lose money Always when starting out, start small and set yourself goals to reach that way if you make a mistake you don't end up wiping out all your trading capital with one big loss..