Sometimes, very simple questions can teach you life’s biggest lessons. Moreover, set you on the right path.
Therefore, it was, when I was forced to ask myself why I wasn’t yet rich, in spite of being in the stock market for 10 years. I had survived the October 87 black Monday crash somehow, but never achieved financial freedom.
I questioned myself, found the stumbling blocks, changed my strategy and lo and behold, actually started creating wealth from the stock market.
Let me share my personal success story of stock market investment. The lessons I learned in stock trading and investment may benefit everyone.
Steps to Financial Success in The Stock Market:
1. Write out your vision - what you want your life to look like when you become a successful trader and investor.
2. Plan a new strategy of stock market investment
3. Ask “why” for every decision of buying, holding and selling
4. Set trading rules for yourself.
5. Never deviate from your trading rules
Here Are The Trading Rules and Follow Them Strictly
1. Buy what is showing strength - sell that which is showing weakness.
2. Don't enter a trade until it has been well thought out
3. On minor corrections against the major trend, add to trades.
4. Be patient.
a. If a trade is missed, wait for a correction to occur.
b. Once a trade is put on, allow it time to develop and give it time
c. You must stay with winning trades to allow them to develop into that sort of trade.
d. Once a trade is put on, give it time to work
5. Never, ever under any condition, add to a losing trade
6. Do more of what is working for you, and less of what's not.
7. When sharp losses in equity are experienced, take time off.
8. When trading well, trade somewhat larger. Make hay when the sun shines.
Why My New Trading Rules and System Made Me a Successful Trader
I started making rational decisions based on facts, not emotions.
I started buying, using logical reasons and holding until there was a valid reason to sell.
I controlled my emotions and fear of loss.
Having said that, keep in mind the following:
1. You cannot predict the future.
2. It’s all about perceptions.
3. Price is everything. Stocks do not follow fundamentals.
4. Most technical analysis is junk.
5. You are responsible for your trading results. Don’t pass the blame to others
6. Trading the stock market isn't everything. It's only money. There are more important things in life
Here you will find a detailed info on latest stock market investment tool
Marl which created a stir in stock market investment community and Wall Street. Subscribe to my monthly newsletter on
financial planning to get latest news on economics.
