Saturday, February 11, 2012
GAMBLING OR INVESTING?
Which are you doing? Let me first say that it is very easy to lose money in the market.
If you are a regular guy with a job, the following DO'S and DONT'S will enable you to make both exceptional returns and also to minimize risk. You have heard these Do's and Dont's over and over before, the reason being that they are tried and true.
1. Buy undervalued companies. Use research tools like Vectorvest, they give you 3 free reports everyday and tell you what the real value of a company is.
2. Buy good solid companies when they are way over sold.
3. Spread your money around, meaning don't put all your money into just one stock.
4. Have a long term outlook.
5. Pick a company with growing revenues and earnings
1. Don't buy on margin
2. Don't day trade.
3. Don't buy a stock without doing the research
4. Don't buy stocks that are illiquid (trade a small number of shares)
A simple fact about trading, you can make a lot of money doing it, but you need to devote ALL of your time to it. Trading is a fulltime job.
Ask yourself, "Do I have time to sit in front of the computer Monday-Friday from 9-5?" If the answer is no, then don't do it. You will lose money. Just think about it, traders who spend all day in front of their computers still lose money on 50% of their trades. So, how are you going to be able to trade successfully and not be in front of the computer from 9-5 everyday?
Ask ANY successful trader if they can make money trading and not be completely absorbed by what they are doing. I assure you, not one will tell you they can trade and not give their full attention to the market.
Posted by Scandal Spy at 4:45 PM