If You Want To Win At Stock Investing You Better Understand These Rules

1) you cannot predict the future. Stop believing it and stop wasting your time trying to do it. No-one ever has nor ever will be able to "predict" what is going to happen in the future. Runaway markets tend to keep running away. Cheap stocks seem to get much cheaper and expensive stocks more often than not, get much more expensive. do not even bother trying to justify a market simply let it do what it wants to.

2) The big money is made from position sizing. You really must stop chasing a holy Grail and spend time on different position sizing rules. This is the one "secret" that separates a professional from the man in the street.

3) Price is all that matters. Stocks do not follow fundamentals. It's all about "perceptions." Why can two identical stocks have completely different fortunes in the market?

4) Stop thinking like an institution. The big money management funds are not interested in outperforming the stock market. as strange as it seems. They are interested in managing money. So when they tell you to "diversify", only invest in blue Chip stocks with a solid past earnings, great management teams, solid this and that.... treat it for the non-sense it is. Unless you want poor returns.

5) 99% of technical analysis is junk. Whole companies have been set up to feed you B*S in the form of technical analysis. Throw it away and get down to basics.

6) Question everything and everyone. Even me. Never blindly believe anything you read or hear about. Be careful about what you read and even more careful about what you believe in. after all an opinion is only some-ones belief.

7) If you have to ask you shouldn't be in. I can't believe people actually ask other people whether they should hold or sell a stock position they are in. Surely before you enter you have your exits all in place. I'll guarantee if you are asking this question you are not making money.

8) I am in the stock market to make money not to win a puzzle. No-one can beat the market. Make a fortune in a bull market play defensive in a bear market. Returns of 300%+ should be easily attainable in the right conditions but do not give it back when the market conditions change.

9) Some people are just not cut out to trade the stock market. If you attach too much importance to your trading account i.e. you are trading "scared money" you will never have the conviction to follow your rules. If you are not having success stop trading. either learn why you are failing or give your money to someone who is.

10) Trading the stock market isn't everything. It's only money. there are much more important things in life and you'd better not forget it.

 

 
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