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?