![]() People who make money keep it simple but work very hard at being disciplined and unemotional. However, it is not usually the rules that are the problem it is the application of the rules. If their set of rules are not working, they add more rules. Investors tend to get more sophisticated as they lose money. Every great trader has a formula, what is yours? Make investments based on a set of rules that you have tested and proven to be successful. Don’t make investments on a hunch or what someone else tells you to do. To make money in the market, you need a strategy that has an edge. If you want the money to flow your way, you have to be ahead of the crowd, do things before it is popular. The average is what most people are doing do you want to be average? It is only a small percentage of the population that has most of the money and they are making it from the largest group. Contrarian investing is only effective when emotion causes stocks to be mispriced and that comes with panic selling. Don’t confuse a bear market with panic selling weakness is not a reason to buy unless it is motivated by panic. The emphasis here is on panic selling, where the overwhelming pessimism has people accepting prices that make no rational sense. At this point, the volume will often be much higher than normal and it will seem as though the stock can do nothing wrong. If the upward trend goes from being linear to a curve, watch for signs of weakness as the upward trend is nearing its end. Sell when there is irrational buying When the mass media is espousing the virtues of an investment, when people who know less than nothing about investing are dumping money into the market, it is probably time to be a seller. ![]() When the market proves your decision wrong, take the loss! MarketWatch Stock Market Simulator is powered by DowJones and is a browser-based simulator. You have to recognize that the stock market can not be predicted with 100% certainty and accept that being wrong is ok. ![]() No one likes to take a loss but losing is part of making money. What’s challenging is choosing companies that consistently beat the stock market. ![]() Investing regularly, avoiding unnecessary financial risk, and letting your money work for you for years and decades is a certain way to amass significant assets. It seems to be human nature to constantly search for a hidden key or some esoteric bitof knowledge that suddenly leads to the end of the rainbow or a winning lottery ticket. How to Win Stock Market Trading Game by Using the Best Stock Market Game AppĮveryone is looking for a quick and easy way to riches and happiness. ![]()
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