A Stock Market Trading Secret Tip to Help You Make More Money

Have you ever heard of the "buy low, sell high" strategy? The misconception of that method is to buy at the very bottom and sell at the very top of the peak. It is impossible to predict where the peaks are unless you have psychic abilities.

A typical beginner would look for stocks that are rapidly falling because they are "waiting" to buy at the lowest point. If a company is falling dramatically, something is terribly wrong for that to happen. If you are waiting to buy low, you might be disappointed to find out that the stock is continuing to drop as if it is an abyss.

A stock market trading secret tip to help you make more money is to follow a stop-loss strategy. What this means is that you put a limit on how much you are willing to lose and where you want the profit to stop automatically. The problem with this is that even if the stock continues to skyrocket, you would be missing out on a lot of profit. Wealthy investors will never think like that. They do not sit here and cry all day about how much they were missing out on.

Another beginners' mistake is to hold on to a losing stock even if it is below 50% of the original price bought. Imagine yourself trying to break even to get your money back. Let's say it went from $12 to $6, you are now looking for 100% gain to try to get back to $12. The best tip for anyone is to get out of a losing stock early, and move on to another one. Do not look back.



By: Kai Lo

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