There is no shortage of persons willing to share with you their secret ways to make money in the stock market. Seemingly everyone has an angle, a strategy or a guaranteed formula for making you a millionaire investing in the stock market.
If you are a beginner investor you are vulnerable to these tactics. You may have even already paid your tuition. Lets look at some sure fire tips that will guarantee you lose money in the stock market.
1. I Have Got A Hot Stock Tip Just For You
We have all experienced the hot stock tip. It can happen anytime, anywhere, and often without any warning.
Someone you know tells you about a stock they have purchased and it is poised to double in price over the nest few days. Your ears perk up because after all, it sounds like easy money.
Truth is, making money in the stock market isn’t easy. If someone tries to convince you it is, run as hard as you can. The other direction!
2. It’s a big company, so they’ve gotta be making money… right?
Big companies go out of business just like small companies and individuals. Bankruptcy courts are full of them. Because a company is large does not mean investing is safe and secure. Remind yourself of Enron whenever the urge to use this logic strikes you when investing in stocks.
3. Hello I Am Mr. Stock Picker, Do You Have a Few Minutes
It is amazing how many investors will trust a total stranger with investment advice. You will be approached by strangers seeking to convince you to buy stocks and invest Usually your best interest are not on their minds.
Remember stockbrokers make money buy taking orders, either buying or selling. Make sure you know whom you are dealing with and avoid stranger with a good song and dance
4. Buying Stocks While They’re Cheap
Bottom fishing for stocks that have reached new lows in hopes that they will recover is a hopeless proposition. Generally stocks go lower because there is a reason.
A simple rule of thumb, most stocks that reach new lows go lower.Most stocks that hit new highs tend to keep climbing. That seems rather simple does it not?
5. Buying Penny Stocks, You Can Buy More Shares
This is a similar strategy to bottom feeding. Why not buy 10,0000 shares of a stock, after all, its only .08 cents a share.
You can double you money easily right? Not so fast. Same principle penny stocks are cheap because they are worth, well pennies.
Nothing will take the wind out of your investing sails like a 30 for 1 reverse split. Investing in peeny stocks is highly speculative. It best to leave those for the speculators.
Here are some more tricks for you that will help you in share market trading and investing money.
10 Real-World Tips for Beginners in the Stock Market
- Don’t Go All In Right Away
It’s better to start small. Use money you’re okay losing while you figure things out. No need to rush it. - Know What You’re Dealing With
Before you start buying stuff, understand what a stock even is. Learn the basic terms. It’s not hard — just take it step by step. - Ignore the Hype
Everyone’s got opinions. Just because something’s trending doesn’t mean you should jump in. Most people have no clue what they’re doing anyway. - Stick With What You Know
If you use a company’s product and like it, that’s a decent starting point. It’s easier to trust something familiar. - Skip the Cheap, Risky Stuff
Those super low-priced stocks might look tempting, but they can crash fast. Better to leave them alone when you’re just starting out. - Don’t Let Emotions Run the Show
The market goes up and down — that’s normal. Don’t freak out when it dips, and don’t get too excited when it jumps. - Have a Game Plan
Before you buy anything, ask yourself: Why am I buying this? When will I sell? What’s my goal? Don’t just wing it. - Set a Stop Loss (Seriously)
This one matters. If a stock drops past a certain point, it’ll sell automatically so you don’t lose everything. Super helpful. - Stay Away from Random Tips
If someone’s shouting about a “can’t miss” stock, it probably will miss. Do your own digging. The internet is full of noise. - Keep Learning As You Go
You won’t figure it all out in one day. Read a bit here and there, watch what’s happening, and don’t stop learning.
Conclusion
You can make money in the stock market. However it requires and education in how stocks work and what drives markets. Take some time to dig in, read up, and learn as much as you can. It might take some work, but it’ll be worth it — or just stick to the plan above if that feels easier.
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