| Stock market trading is often touted as something so | | | | more profitable trades, trade more stocks - but you |
| simple anyone can do it and do it better themselves | | | | have to earn that experience. There is no substitute |
| than if they used a broker. While this is true, it's | | | | for it. |
| important to keep an eye out for some of the | | | | When we learned how to drive we didn't start off |
| common mistakes people make. | | | | driving a Formula One car or a drag racer. Most of us |
| People are always advised never to invest money | | | | learned with something that wasn't so dangerous to us |
| they can't afford to loose in the stock market. Even | | | | and more forgiving of mistakes. The stock market |
| with the best decision, there's still a chance that things | | | | should be treated like that. While it's possible to having |
| can go wrong, especially when emotions are involved. | | | | amazing returns and success with the stock market, |
| Pay attention to all the information you can find. | | | | handled inappositely can lead to disastrous results. |
| Choosing a stock because its symbol is your initials | | | | Before you play with your entire budget and exercise |
| might be a good sign that you need to double check | | | | more complex options, be careful that you know how |
| how rational you're prepared to be about investing. | | | | the basics work. |
| A rational investor has a plan. Knowing when to get | | | | Like driving, investing in the stock market can become |
| out is as important as when to get in for a given stock. | | | | second nature and allow you to take into consideration |
| Planning your work and then working your plan isolates | | | | more factors and produce better results. While you |
| you from more volatile emotions and emotional | | | | might feel out of your depth when you first start |
| responses. You're taking an active role in the | | | | investing, you'll build up the experience to jump onto the |
| stewardship of your finances; remember the long term | | | | highway with cars traveling 70 miles an hour and feel |
| goals you have. | | | | comfortable. |
| But no plan, no matter now good will work all the time. | | | | Keep in mind that it's a learning experience and don't |
| Invest your money in discrete lots and never invest all | | | | be afraid to make mistakes. Also remember that it is |
| your money in one stock. Yes, you're giving up the | | | | game and the stakes are very real. When you do |
| potential for gains but you're also providing a hedge | | | | something, know why you're doing it.Rright down a log |
| against things going tragically wrong. | | | | of your activities and your decisions and read and |
| Understand that you're learning in this and set up a | | | | understand your environment. Darwin said that it's not |
| mock portfolio first to allow you to gain experience. | | | | the strongest species that survives, but the most |
| The more experience you have the better you'll do at | | | | adaptable. Survive and overcome the initial learning |
| trading stocks. Getting better means you can make | | | | curve and you can succeed. |