let me start off by saying there are lot of ways to make money investing in shares and follow Stock Tips . There is no one "right" way. However, after countless hours of investing in shares, I believe the advice outlined below represents a very solid approach to maximizing your profits when investing in shares.
1) Have a Plan - The most important thing to remember is to know when to get into a trade, and know how you will get out of the trade. Most traders make the mistake of only focusing on the former of these two requirements.
2) Learn to take loses - Remember when investing in shares don't let your loses get out of control. Also, don't increase your position size until you have at least increase your investment account by 150%. Most investors make the mistake of increasing their trades as soon as they start making money. This is a fast way to get wiped out!
3) Be Very Selective - When investing in shares you should wait for the right Stock Tips to come along. Have the patience to hold your money until the high probability trade sets up just right.
4) Pay Attention to How a Stock Responds to News - Look for shares that move higher on good news but don't drop significantly on bad news. Avoid investing in shares that responds poorly to bad news and don't move up significantly on good news.
5) Value Alone is Not Enough - Although a number of famous investors considered investing in shares of undervalued companies a necessary condition, I believe none of them viewed it as a full proof condition. There always had to be a catalyst for the trade, because shares could be under priced for many years. Even if you don't lose a lot of money in buying value shares that just sits there, an opportunity cost would be incurred.
6.) Do not Trade Impulsively - A weakness of every trader is investing in shares for no particular reason,giving in to impulse trading. Impulse trading is basically gambling and can cause you to lose the largest amount of money by invoking your emotions of fear, greed and inability to recognize you made a bad trade. Successful traders know they will make bad trades from time to time. But they never hold on stubbornly to a losing position. They try to keep their losses small.
7.) Never Sell A New High - If the market keeps making new highs, there are good reasons for it. It's smarter to be "long", investing in shares that are rising, and go with the up trend than try to go "short", betting on shares falling, and fight against the trend. There's no way of knowing how high the market may move against you. Wait a few days for a definite indication of a reversal in trend. It might be several days or weeks.
Stock Tips |
2) Learn to take loses - Remember when investing in shares don't let your loses get out of control. Also, don't increase your position size until you have at least increase your investment account by 150%. Most investors make the mistake of increasing their trades as soon as they start making money. This is a fast way to get wiped out!
3) Be Very Selective - When investing in shares you should wait for the right Stock Tips to come along. Have the patience to hold your money until the high probability trade sets up just right.
4) Pay Attention to How a Stock Responds to News - Look for shares that move higher on good news but don't drop significantly on bad news. Avoid investing in shares that responds poorly to bad news and don't move up significantly on good news.
5) Value Alone is Not Enough - Although a number of famous investors considered investing in shares of undervalued companies a necessary condition, I believe none of them viewed it as a full proof condition. There always had to be a catalyst for the trade, because shares could be under priced for many years. Even if you don't lose a lot of money in buying value shares that just sits there, an opportunity cost would be incurred.
6.) Do not Trade Impulsively - A weakness of every trader is investing in shares for no particular reason,giving in to impulse trading. Impulse trading is basically gambling and can cause you to lose the largest amount of money by invoking your emotions of fear, greed and inability to recognize you made a bad trade. Successful traders know they will make bad trades from time to time. But they never hold on stubbornly to a losing position. They try to keep their losses small.
7.) Never Sell A New High - If the market keeps making new highs, there are good reasons for it. It's smarter to be "long", investing in shares that are rising, and go with the up trend than try to go "short", betting on shares falling, and fight against the trend. There's no way of knowing how high the market may move against you. Wait a few days for a definite indication of a reversal in trend. It might be several days or weeks.