4 Stock Market Tips for All Investors

There are certain things that will prevent you from seeing consistent profits in the stock market. The two most common that knock most traders out are the emotions of “fear and greed.” If you do not conquer these two emotions then you are doomed.  Here are four stock market tips for every trader regardless if you are a newbie or a so called expert to overcome these two powerful emotions.

Learn to control fear.

Stock Market Tip #1 :
Set a predetermined exit from the stock based on the chart.

Stock Market Tip # 2 :
Determine a maximum amount of money you are willing to part with if the trade goes against you and set an automatic sell order to exit the position.

Learn to control greed.

Stock Market Tip # 3 :
Determine in advance where you would sell the stock to reach your ideal profit based on reading the stock chart and then set an automatic sell order at that price to prevent you from becoming greedy and wanting more profits.

Stock Market Tip # 4 :
Get an accountability partner who is not financially invested in the stock trade so they can serve as a check and balance system to help keep you on track with your financial goals and talk sense into you when you get greedy.

Now that you know about the two emotions you must master, I’d like to hear from you.  Have you ever made a decision based on Fear & Greed?  In the stock market or on your job, in a relationship, anywhere in life.  What was the outcome and what did you learn from it?

  • Sam Iam

    Not from greed but from fear. I learned how to set the trades up right and to record them on a trade plan and then use that to follow along putting in the trade. But I got in a hurry and didn’t document it and therefore I fumbled on my set as I wasn’t paying full attention, put in a sell instead of the buy as intended. By the time I realized what I had done, literally within minutes, I was quickly $2,700 in the hole. instead of reversing the trade or getting out of it completely like I should have, I thought oh it’ll turn around and it did not. I ended up with a $15,000 loss that wiped out my account because I was too afraid to buy back what I had sold at such a loss, which in the long run, ended up giving me an even bigger loss. I definitely learned from this one as a hard and fast rule to not let fear rule you and just do what my training taught me to do and get the heck out of there.