LoansHow to Be Successful in Stock Market Trading-Investing
Experts say that to be successful in Stock Market Trading/Investing, take emotion out of it. But novices and non-professional traders can hardly do this. Let me share with you how I treated Trading/Investing as Business. I just followed these principles:
Successful business is created long before there is business. Business owners have to turn bad luck into good luck.How did I apply these principles to my trading/investing. 1. I created Trading/Investing Business before actually doing the trading or investing by:
First doing some deep soul searching to know "What Is My Purpose in Going into Trading or Investing?" For money? There should be noble purpose than money alone so business will thrive for a long time. After knowing my purpose, I then established a "Trading Plan", which include:
My system or discipline in selecting what stock(s) to trade, the objective price, the entry point, when do I execute the entry, the stop loss price or point, the trailing stop and when to execute stock exit.; My money management system to make sure my capital can stay in the market, after so many consecutive losing trades?;
Then I ask; "Why am I trading this stock?" The answer should be other than "somebody told me to trade this stock". I made it a point to take sole responsibility on my trades; Then I practiced my trading plan by paper trading. I fine tuned it until I was satisfied. I visited some websites for free paper trading (for more info visit the website stated below and read the featured article);
The moment my paper trade account keeps on increasing or growing for at least three (3) consecutive months, I concluded that I am now ready for the real trading or investing; Then I started trading using my plan, sticking to it and doing it slowly but consistently. 2. Turning Bad Luck into Good Luck. I implemented this principle by analyzing my losing trades determining what caused the loss and introduce improvements not to do the same. I did this to all my losing trades and is doing it consistently.
Doing these things greatly minimized, if not eliminated, the emotions during my trading or investing. Although, I cannot guarantee that If you follow what I am doing, you could experience the same result as I am experiencing because every individual is unique and different in so many ways.
Try to remember stock trading is simply a business. It goes in waves. Great periods and flat periods. There is no magical button for big profits (although in great bull cyles it might feel like you have found it) Keep focused and keep a well balanced life as well. The stress wil lcome when you get greedy and try to make more and more money by re-investing the wheel every day. There's nothing new in stocks. the same basic principles that worked over a hundred years ago work today. Technology might have haged but human emotion will never. Good and have fun.