Everyone wants to trade the stock market. But not everyone knows how. This is evident in the fact that 90% of traders fail to make money in the stock market and in fact most of them lose money.
It is possible to make money from the stock market, but not by following the rest of the crowd and doing what everyone else does. Here are some stock tips which can put you in a better position.
1. Quit Listening to "Experts" Tell You Which Stock To Get Into
Of course it is always a good idea to have a mentor, however they can help you to achieve your goals a lor better and learn how the stock market really does work. However this does not mean that you should ask every single "expert" out there what stocks to get into now to make big bucks.
Everybody looks at the market slightly differently. The best thing to do is to simply learn how the stock market works and develop your own strategy out of that.
Instead of asking an expert what they think of a specific stock what about asking them how they trade and what do they look for when picking stocks. That will help you out a lot more.
2. Become Your Own Expert
Next become an expert. Learn about the stock market, how it works, and why the market does work the way it does and start working on creating a system around what you have learned.
3.Backtest and Papertrade Strategies
Of course just because you come up with a strategy does not mean that the strategy is going to work to make you money. If you want it to work out then you will have to backtest and papertrade that strategy.
Backtesting means going in the past and seeing how your strategy would have worked out for you in the past. Papertrading means actually trading with your strategy, but without real money.
That will be able to give you an idea on if your system is actually working to make you money or if it will actually lose you money.