Connect with us

Business

2 Tips For Investing In The Stock Market

2 Tips For Investing In The Stock Market

The investor’s game takes you through a wide range of human emotions. Learning how to embrace and release fear, greed and hope, can help you stand out from the investing crowd.

Most stock investors allow their emotions to rule their actions. Greedy pigs hold onto stocks long after the stocks have topped out and suffer through sharp corrections. Hopeful investors refuse to sell after a stock has tanked for good and fearful investors rarely make any money as they panic and sell out just when their winning stock starts its ascent.

Cut Your Losses Quickly and Let Your Winners Ride

Learn how to cut your stock market losses quickly. Some investors suggest cutting losses when the price drops 8% to 10% below cost if you’re investing in fast-moving growth stocks.  Lose the idea of being hopeful or optimistic when your investment tanks quickly. Whether your stock drops 10% in hours, days, weeks or months after your purchase consider selling the stock immediately to prevent future massive losses.

2 Tips For Investing In The Stock Market

Practice letting your winners ride to maximize your profits. If a stock is up 20% or 25% from your purchase price consider taking some profits and allowing your investment to appreciate. Let the stock perform well to see the greatest returns. Don’t fear losing out on profits by quickly selling out when you’ve seen a quick 10% uptick. Don’t get greedy when you’re up 30% and refuse to take any profits. Simply set up a hard and fast rule that you’ll take some profits at the 20% mark but that you’ll let the stock value increase unless you see highly irregular behavior like a sudden dip or perhaps a 200% increase in hours due to some big development within the company or industry.

Practice Emotional Control

The stock market is ruled by a mix of fear, greed and hope. Fearful people sell out quick when their stock experiences a minor correction. Fearful people also hold on to a tanking stock in a nose dive because they fear missing out on a potentially prospering opportunity when they should sell immediately.

The market is ruled by greed when a large group of investors hold onto a stock through its meteoric rise when they should be selling in small lots to take a profit. Eventually, most of these high fliers fueled by greed crash outright or simply take a 50% or 100% correction which terrifies greedy bloggers.

Hopeful people hold stocks that drop 50%, 100% or more within a period of weeks or months. Even though the fundamentals of the company are terrible and the stock’s technical aspects signal a losing investment people who hope too much either go broke or their portfolio takes a serious hit.

Practice emotional discipline to see the greatest investment success. Disciplined investors are fearful when most investors are eternally hopeful or disgustingly greedy. Disciplined investors are hopeful when most in the stock market are fearful.  Learn how to spot fear, greed and hope in both yourself and in the collective consciousness of the stock market to maximize your profits.

Serious investors should visit http://www.trendsinvesting.com/trend-search to increase their earnings potential.

Continue Reading

Recent Posts

Autos5 days ago

In a Car Accident? Here’s How to Find a Great Lawyer

If you’ve recently been in a car accident, you know that it can be an overwhelming experience. Not only do...

Education6 days ago

Considering Therapy? Here’s a Few Common Therapy Techniques Explained

If you’re considering therapy as a means to improve your mental health, you may be curious about the type of...

home repairs home repairs
Home Improvement7 days ago

Top 5 Home Repairs You Should Never DIY

DIY home repairs are all the rage these days. But before you jump on the bandwagon, there are some things...

Health2 weeks ago

The Power of CBD Oil for Relaxation: How to Use it for Sleep and Stress Relief

If you’re struggling to get a good night’s sleep or feeling stressed, try CBD oil. CBD oil has a moment...

General3 weeks ago

Benefits of Getting your Mobile Phone Repair

Mobile phone repair is a task that needs high skills and experience. That is why we always recommend users trust...

Home Improvement3 weeks ago

Great Ways To Clean To Get Your Security Deposit Back In Full

Moving is almost always stressful as there are tons of things to plan and do. Getting your security deposit back...

Home Improvement3 weeks ago

DIY Garage Door Repair: Tips and Tricks for Fixing Common Problems and Maintaining Your System

If your garage door needs to be fixed, wait to call a repairer. Many common problems can be fixed quickly...

Education4 weeks ago

7 Tips to Choosing the Right University for You

Are you considering continuing your education at university? If so, it can be overwhelming to decide which school is right...

Finance1 month ago

3 Ways Loans from Credit Unions Are Different From Major Banks

If you’re in the loan market, you may wonder if a credit union is the right choice. Here are three...

Food1 month ago

The World of Coffee: Exploring the Aromas, Flavors, and Benefits of the World’s Most Popular Beverage

Coffee is one of the world’s most popular beverages, enjoyed by people of all ages and backgrounds. It’s also one...

Education2 months ago

New Driver? 5 Things to Consider When Looking for Driving School

When it comes to choosing a driving school, there are many factors to consider. Not all driving schools are created...

Home Improvement2 months ago

Landscape Irrigation Systems: The Basics

If you’re a homeowner, you know that keeping your lawn and landscaping looking nice can be a lot of work....

Travel2 months ago

5 Things to Look for in Luxury Hotels

When it comes to luxury hotels, there is a lot to look out for. Here are five key things that...

Home Improvement2 months ago

Is There a Difference Between Commercial and Residential Concrete?

If you’re a contractor, you know that concrete is a versatile construction material. But did you know that there are...

Law2 months ago

5 Tips to Find the Right Litigation Firm

When it comes to selecting the right litigation firm for your legal needs, choosing wisely is of utmost importance. It’s...

Categories

Archives

Trending