How To Win Stock Market Investment

Lessons From Stock Market Wizards

1. All successful traders use methods that suit their personality; You are neither Waren Buffett nor George Soros nor Jesse Livermore; Don't assume you can trade like them.

2. What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you can control.

3. To be a winner, you have to be willing to take a loss; (The Stop-Loss Breakdown)

4. HOPE is not a word in the winning Trader's vocabulary;

5. When you are on a losing streak -- and you will eventually find yourself on one -- reduce your position size.

6. Don't underestimate the time it takes to succeed as a trader -- it takes 10 years to become very good at anything (There Are No Shortcuts).

7. Trading is a vocation -- not a hobby

8. Have a business/trading plan (Write This Down)

9. Identify your greatest weakness, Be honest -- and DEAL with it.

10. There are times when the best thing to do is nothing. Learn to recognize these times (Nothing Doing).

11. Being a great trader is a process. It's a race with no finish line.

12. Other people's opinions are meaningless to you; Make your own trading decisions (The Wrong Crowd).

13. Analyze your past trades. Study what happened to the stocks after you closed the position. Consider your P&L game tapes and go over them the way Vince Lombardi Bill Parcells reviewed past Superbowls.
14. Excessive leverage can knock you out of the game permanently.

15. The Best traders continue to learn -- and adapt to changing conditions.

16. Don't just stand there and let the truck roll over you.

17. Being wrong is acceptable -- staying wrong is unforgivable.

18. Contain your losses (Protect Your Backside).

19. Good traders manage the downside. They don't worry about the upside20. Wall street research reports are biased

Steps to Build A Stock Portfolio

Steps to Build and  Manage a Stock Portfolio

Are you an investor looking to build a brand new stock portfolio? Or maybe, you have managed investments or a retirement plan and you are now looking to maximize your investment portfolio? This report will help you build your stock portfolio to generate "real" wealth.
 
Easy access to investing information and the availability of online trading has made life much more enjoyable and less costly for do-it-yourself investors. The Internet has brought the "trading" desk to millions of households and it is now possible to buy and sell shares, options, warrants, interest rate securities and managed funds from your own home. All you need is a computer and an internet connection. 

In addition, you can do your own research on a particular company or fund manager as well as finding out what some stock brokers are recommending to their clients. Much of this information is free or available at a reasonable cost and you can save yourself hundreds, or even thousands of dollars in fees and commissions every year via the internet. Rather than go through a full service stockbroker or investment advisor, why not give it a try?
 
When building your own stock portfolio, here are some pitfalls you need to avoid!
While you can find a plethora of good information on stocks, you can also find very poor information. Each website claims to have the latest hot picks or the "top ten" stock buys and often they contradict each other. Who do you believe and what about the scams?
You will undoubtedly come across websites and chat rooms that give investment advice or tips about investments, but many of these are not qualified to do so. The information may be wrong or misleading and some websites even repeat incorrect rumors.

Important rules to live with sharemarket

Lessons From Stock Market Wizards ( Please try to follow all these basic rules)

1. All successful traders use methods that suit their personality; You are neither Waren Buffett nor George Soros nor Jesse Livermore; Don't assume you can trade like them. 2. What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you can control. 3. To be a winner, you have to be willing to take a loss; (The Stop-Loss Breakdown). 4. HOPE is not a word in the winning Trader's vocabulary; 5. When you are on a losing streak -- and you will eventually find yourself on one -- reduce your position size; 6. Don't underestimate the time it takes to succeed as a trader -- it takes 10 years to become very good at anything; (There Are No Shortcuts). 7. Trading is a vocation -- not a hobby. 8. Have a business/trading plan; (Write This Down). 9. Identify your greatest weakness, Be honest -- and DEAL with it. 10. There are times when the best thing to do is nothing; Learn to recognize these times (Nothing Doing). 11. Being a great trader is a process. It's a race with no finish line.12. Other people's opinions are meaningless to you; Make your own trading decisions (The Wrong Crowd). 13. Analyze your past trades. Study what happened to the stocks after you closed the position. Consider your P&L game tapes and go over them the way Vince Lombardi Bill Parcells reviewed past Superbowls. 14. Excessive leverage can knock you out of the game permanently. 15. The Best traders continue to learn -- and adapt to changing conditions. 16. Don't just stand there and let the truck roll over you. 17. Being wrong is acceptable -- staying wrong is unforgivable. 18. Contain your losses (Protect Your Backside). 19. Good traders manage the downside; They don't worry about the upside. 20. Wall street research reports are biased

Steps for New Investors

Steps for New Investors

All new investors will always ask about what kind of "individual" stocks they should be investing in. I know they will more than likely lose their invested money and lose it quickly. There are few main steps, in my opinion, every new investor should ask themselves before they invest in anything.

Step 1:

Do you have an emergency fund in place? Many people simply do not plan for the worst, and then when the worst happens they have no money to get them through their rough patch in life. Before anyone decides to invest in anything they need to make sure they have an emergency fund in place. This is to cover themselves in case of an unexpected life emergency such as the lose of a job.

Step 2:

Do you know anything about investing in the stock market? Many people see television shows that make it seem like it is so simple to pick a stock and make money off of it. Well that simply is not true. It is very difficult for any investor, especially a novice investor, to consistently pick winning "individual" stocks. If you have never invested in the stock market in your life; then you need to take the time to at least learn the basics or you will lose money very quickly.

Step 3:

Do you know how to pick the right broker? In today's fast-paced online trading environment there are many online brokers who offer very different services at very different prices. Commission cost can be very expensive for someone that wants to be an active trader. However, there is a trend in today's world that has brought on a lot of competition in the online broker world. A few brokers actually offer commission free trading, but of course they do not offer a lot of the trading tools offered by more expensive brokers. This means if you can teach yourself what you need to know, instead of relying on a brokers assistance, you will have a much more cost effective way of trading by using a commission free broker.

Step 4:

Do you have the time to pick the right stocks? In this fast-paced world spending hours looking over stock charts is probably not realistic. Which means today's average investor probably needs to make the decision of whether they should simply invest in mutual funds instead of "individual" stocks, or use a professional technical analysis company to assist in narrowing down their choices. There are a few good companies out there that specialize in this kind of assistance, but there are also a lot of bad one's as well. So investors should do some research to get some unbiased reviews of these companies. Every new investor really has to take the time to understand what they are getting themselves into before they invest any of their hard earned money. I have seen to many people jump into the stock market without any real knowledge of what they are getting themselves into.
About the author: Chad Surges has a Bachelor's Degree in Business. He invites you to visit his website for free information about different investing techniques and strategies: www.lucky-dog-investing.com

Knowledgeable investors can determine when it is time to get in and out of certain sectors. Once investors figure out which sectors are the strongest; they can then determine which companies within those sectors look the most profitable.

Bull, Bear, or Sideways Market :

So what is a Bull, Bear, or Sideways Market?Bull markets occur when the major indexes, the DOW, NASDAQ, and S&P 500, are all going up. (GOOD FOR MOST INVESTORS) Economy as a whole is in good shape and investors are willing to put money into the market.
Bear markets occur when the major indexes, the DOW, NASDAQ, and S&P 500, are all declining. (BAD FOR MOST INVESTORS) Investors are basically selling their shares for whatever they can get for them and the economy as a whole is not doing well.
Sideways markets are basically a point when the indexes simply stall out and they are neither going up or down.
Different variations of these trends have occurred at different points in the history of the stock market. The trends can be long or short depending on a wide variety of factors.

Sectors of the stock market :

As you watch CNBC you will hear the term sector being thrown around a lot. A stock sector is a group of companies that belong to a similar industry.
Some examples would be the retail sector, pharmaceutical sector, automobile sector, or oil sector.
No matter how well the stock market is performing overall; there will always be sectors of the stock market that are doing good or bad at different times for various reasons.