Stock trading: 41 Great Tips For Successful Investment

Making good money in the stock market by trading stocks is actually a great way to boost your income. Although the investment market is risky, it can also turn out to be an extremely lucrative one if you know how to play your cards right.

However, if you take a look back at the history of the stock market, you may have pinpointed a lot of unpredictable turn out of events that puzzled traders or investors who famed themselves to be masters of the trade. Well even with this discovery, you can still successfully venture into stock trading if you are fully equipped with the right and proven knowledge or ability.

Stock trading: 41 Great Tips For Successful Investment Now let us explore some time-tested tips that can drastically increase you chances of making it big in the stock market;

  1. Do not get involved with volatile types of investment opportunities, such as; options, foreign stocks or futures.
  2. Do not put all your eggs in one basket, in other words, diversify your investments; do not put all your capital investment in just one stock, select stocks from the different sectors and invest in them. This is a sure way to reduce the risk factor.
  3. If you are new in the game (a New investor), prepare yourself to take some little losses.
  4. Always remember to cut your losses at exactly 8% below your purchase price. In other words learn to minimize your losses.
  5. Model successful traders. Observing and learning the tricks of successful traders is also a great way to increase your chances of trading success. A great thing to learn is their attitude, as I believe that those who are truly successful in this venture have a clear business plan, also they happen to be comfortable with risks and uncertainties.
  6. Having a perfect idea of how to invest doesn’t happen overnight, it actually takes dedicated time and unrelenting effort to be successful at it.
  7. Focus on high-quality stocks, even if they happen to be few, as there is no need to own thirty or more stocks at your disposal.
  8. It is highly recommended for beginners to conduct a research on the market and get a better understanding of it before proceeding to make any transaction. In other words, you have to be familiar with the ups and downs of the market and get a full understanding of the basics before making a move.
  9. Remember to keep your emotions in check when trading stocks. This means that you should ensure to follow the stated buying and selling rules, and resist the emotional temptation to change your mind.
  10. In stock trading, persistence is the key to success, don’t get discouraged by the unfavorable turn of events.
  11. Don’t buy stocks that are too cheap, like shares that are $15 a share or less. This is because leaders of industry do not offer $5 to $15 per share.
  12. To earn great profits, you have to buy stock from the best companies at the right time.
  13. Always conduct a post-analysis of your stock market transactions, this will help you learn from your past successes and mistakes.
  14. Profitable stocks basically come from sectors such as specialty retail, drugs and medical, computer and software, communication technology among others.
  15. Major characteristics of winning stocks are strong sales and earnings.
  16. Stocks from leading sectors or industries are the best, in other words, always remember to buy stocks from them.
  17. In order for you to successfully pick winning stocks, you ought to have a knowledge of both fundamental and technical investment styles.
  18. One thing you should know is that “Stocks never skyrocket by coincidence”, when this happens it most likely that there is a large purchase, usually from big-time investors such as pension and mutual funds.
  19. Take note of the “pivot point”, as that is the optimal buying point of all kinds of stock.
  20. It is actually great to be confident while trading, but don’t be too overconfident. You should always keep in mind that the values can fluctuate at any moment, no matter how steady they are at present.
  21. As a new investor, if you use a stock broker for your trading, make sure that the person has a good track record.
  22. Also as a beginner, you should be careful of the kind of account you set up. It is highly recommended that you set up a Cash account and not a margin account.
  23. To get started, it basically takes $500 to $1000.
  24. Always look at the stock chart to study the graphical trends of the stock of your interest. Doing this will keep you updated about the market movements.
  25. When buying stocks there is an old saying which goes “buy low and sell high”, now replace that with “buy high and sell a whole higher.”
  26. Always keep track of the general market, because most stocks follow the trends of the general market. This market is basically demoted by top market indices such as the NASDAQ composite, the S&P500, and Dow Jones Industrials.
  27. The history of the stock market always repeats itself.
  28. Take note of chart price and volume action, as they help you detect when a stock has reached its peak as well as when it should be sold.
  29. Getting the right knowledge of timing is a major key to successful trading. This basically means knowing the right time to buy and sell your stocks.
  30. Fact: three out of four stocks, no matter how good they are, will eventually follow the trend of the general market.
  31. The majority of technical market indicators are not really good. Making use of Psychological indicators like Put-Call can help pinpoint changes in the market’s direction.
  32. There are basically two types of investors, they are value and growth stock investors. The former search for undervalued stocks while the latter are always seeking companies with great earnings and sales growth, as well as superior profit margins. It is generally better to become a growth stock investor other than being a value investor.
  33. Make money and scram, this implies that when you successfully earn a reasonable profit, just take your money and go. Some traders may be tempted to keep trying to earn higher profits and lose their previous earnings at the end of the day.
  34. When you decide to purchase a stock, always remember to buy only half of your desired stock at the initial or first transaction.
  35. Declining stocks may attempt to rally at any point in time. So you should always be at alert and take note of this positive market changes.
  36. Owning stocks solely depend on how much you are willing to invest. However, you shouldn’t own more than six stocks. If you are investing $5000- own only one or two stocks; with $10,000 you can own two to three stocks; $25,000, you should buy three to four stocks; $50,000, you should own four to five stocks; $100,000 and beyond, with this amount you should own six stocks. As I said earlier, you shouldn’t own more than anything six stocks. This is a professional advice.
  37. You should never attempt to buy a stock you receive through an email, you should take note of this if you buy stocks online. This is because the online world is basically full of scams so you have to be careful in your online stock trading.
  38. To stay properly informed about the best strategies in stock trading it is imperative that you invest in learning more about the various methods and techniques that have to do with the stock market. Having good knowledge about online stock trading is important if you really want to become successful in your transactions.
  39. Choose your technique or strategy and stick with it. To earn big in stock trading you have to choose the best technique that will be of great benefit to your investment goals. Due to the fact that this venture is full of unforeseen risks and uncertainties, having and mastering one or two proven strategies is a great way to safeguard yourself in this market.

With these simple yet effective stock trading tips, you are sure to become am an expert in the field of stock trading or investments. You are bound to have a high chance of skyrocketing your earnings and overall income as long as you take your time to follow this tips and apply them to your dealings. Making it big in the stock market is actually possible if you have the appropriate knowledge and technical know-how, and with these tips, you are sure to astonish yourself.

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