Would you be surprised if I told you that nobody should be losing money in the stock market? Well, that is actually a true statement. In the age of discount online brokerages, everybody should have a trading account, and they almost do. When it comes to trading stocks most people lose money because the question themselves. We have many more Stock Market Investing Articles Now Available.
Let me give you a quick example. You bought 100 shares of stock X at $32.00. The stock then moved to $34 and you should; however, the next day the stock continued to move up. Reluctant to be happy with the profit you already gained, you get back into the stock but the stock goes down. You think it will it go up again, but it actually falls below your initial price of $32.
Might sound crazy, but it actually happens more often than not. The same same example can be said for the other way. You bought a stock, it went down, and you sold. The next day the stock moves up. In order to try and get some of your money back, you buy back in yet the stock moves down again.
The key idea you must keep in mind is to keep it impersonal. Take what you get. Don’t let the stock dictate how you trade. It is better to lose $0.50 per trade than $2.00 per trade. Remember why you bought or sold in the first reason, and stick to it.
Nobody can predict cent by cent when to buy and sell, so feel confident in what you decided and then move on. If you try to fight the stock, the stock will ALWAYS win. We have many more Investing Help Articles Now Available.