Nine Secrets To Stock Market Success! Valuable Tips From Market Pros

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Georgia Marshall
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2 Nine Secrets To Stock Market Success! Valuable Tips From Market Pros

3 Nine Secrets To Stock Market Success! Valuable Tips From Market Pros Have you ever wondered what makes some investors wildly successful, while others spin their wheels for years never making any money in the markets, or possibly losing it all? Does it have something to do with intelligence? Skill? Possibly luck? No, no, and no. What really separates stock market winners from losers is discipline. Fact is, the large majority of investors can t follow a strict process. At some time or another they succumb to their emotions. And once they do, well, that s when it all starts falling apart. Sound familiar? If it does, I have some great news for you Today I m going to reveal nine secrets that will make you a better trader and investor almost instantly. The tips below are so powerful that if you follow them, you ll likely notice a remarkable improvement in your investing and trading results within a few weeks, if not a few days. Let s not waste any more time. Here are nine market secrets that will transform your investing results, and possibly your life!

4 Secret #1: Never Hold Onto A Big Loser At some point or another every investor will experience this. Maybe you already have You hold onto a big losing investment, hoping for it to make a comeback. You see the losses mount, yet you can t rid your portfolio of the capital destroying loser. What should you do? First of all, you made a mistake letting yourself get into that position in the first place. We ll discuss more on that in Secret #2. But now that you re sitting on this losing position it s best you sell it and move on. Why? While you re holding onto your loser (hoping for a comeback) your capital is missing out on better opportunities. In other words, there s a big opportunity cost of holding losers. Listen closely Successful investing is rather simple you take small losses when you have to, and hold on to the winners giving you big gains. It s simple math If your losses are smaller than your winners, you ll come out ahead. The ONLY circumstance where you hold a losing position is if it pays a hefty dividend to do so. But even then, you ll have to draw the line somewhere.

5 Secret #2: Always Have A Risk Control Process How do you keep investment losses small? You always have a plan to control your downside risk before entering a investment or trade. For example, many successful investors have a plan to exit their position once it s down 10% from their entry point. Others use a technical point on a chart. If their investment crosses a line in the sand, they sell it no matter what. It doesn t really matter how you do it, just as long as you do it. Fact is, successful investors always have a plan to control their downside risk and they stick to it. Secret #3: Don t Sell Winning Positions Too Quickly When you do have a winning stock position, don t sell the entire position too quickly. If you re always taking small profits, you ll be spinning your wheels for no telling how long. Long term market success comes from collecting winning positions that are multiple times larger than your losers. How do you do this? Here s a simple strategy to get you started

6 Have a profit taking plan before you enter each trade. Sell 1/3 of your position at a predefined first profit target. Sell another 1/3 at a second profit target. And here s the real key Leave the remaining 1/3 position open for as long as you can, with a breakeven stop. You never know when a stock will go on a remarkable bullish run that will garner you huge profits. These are the trades that really give your portfolio a big boost! Secret #4: Size Your Stock Positions According To A Plan Ever heard the term, Don t put all your eggs in one basket? It s really rings true with investing and trading. If you put all of your investable capital into one or two stocks you re begging for a disaster. If something unexpected happens, you could be sitting on enormous, portfolio destroying losses. There are plenty of different position sizing strategies for divvying up capital between positions. Make sure you find one that works well for you and your financial circumstances, and stick to it.

7 Secret #5: Don t Try Calling Tops And Bottoms Don t try to be a hero by picking tops and bottoms in markets. You may get lucky a couple times, but over the long run you ll find calling tops and bottoms in markets is a fool s errand. Instead, have a goal of simply catching a trend. For example, find an up trending stock and trade with the trend. If you like shorting, find stocks that are already in a downtrend and trade with a bearish sentiment. Trading with the prevailing market trend is the easiest way to make money over the long haul. Secret #6: Don t Hold Positions Through Earnings Some of you may argue this idea But in most cases you should NOT hold stock positions through quarterly earnings releases. Why? Not only are you very unlikely to know what those earnings will be, but it s impossible to know how the market will react to them. In many cases, a company s earnings can be great but the stock gets hammered due to lousy forward guidance. When you hold a stock position through an earnings call, you re exposing your portfolio to undue risk.

8 Now, there is a caveat The only time you can hold through earnings is if you re a long term investor with a cost basis far away from the current market price. That way, if there s surprisingly bad earnings news, you won t subject your portfolio to losses. Secret #7: Be Willing To Admit You re Wrong I see this mistake happen all the time, even with experienced investors. They do so much research on a company, be it fundamental or technical, they re incapable of seeing another perspective. How do you avoid this trap? Do as much research as you like, but remember the market is ALWAYS right. In other words, no matter what the market does don t fight it. Fact is, neither you nor anyone else can control what the market does. So even if you ve done loads of research on a company, you have to accept the fact the market may not see it the way you do. Secret #8: Keep Tabs On Your Emotions Ever find yourself yelling at your computer screen because a stock isn t doing what you expect? I know a few people that do. And the fact is, they re all lousy investors. They re making a critical mistake

9 Instead of following a defined plan with each trade, they become emotionally attached to their positions. It s funny, they treat the stocks in their portfolios like their pets! They love them when they re doing something right, and scold them when they do something wrong. But the real problem is, they never get rid of them when they re acting badly. If you want market success, treat your stock positions like a ruthless employer. If your employees are doing something right, hang onto them. If not, get rid of them and find ones that do a better job. Secret #9 NEVER Average Down What s the biggest investing mistake anyone can make? Averaging down into a losing position. People average down because they erroneously believe that if they lower their overall cost basis in the position, it will recover their losses and possibly turn into a winner quicker once the market turns around. While it s possible, most times it doesn t work out that way Nine times out of ten, you ll just end up throwing good money after bad, and make your losses even bigger. Remember, the key to successful investing is keeping your losses small and your winners big. Averaging down into losing positions goes completely against that rule.

10 Instead of investing valuable capital into a stock that other investors want, you re throwing more money into a stock that people don t want! While doing so, you increase the odds of making your losses bigger, not smaller. Keep in mind Averaging down is typically a method used by investors who can t control their emotions. They become attached to a losing position, unwilling to admit they re wrong. Whatever you do, never average down into positions that are already showing losses! Disciplined Investing = Successful Investing Friends, you just read some very valuable market tips. You may not realize it yet, but the secrets above are guaranteed to make you a successful investor/trader. But here s the cold hard truth Most people don t have the discipline to follow the rules above. That s why you have to make a very important move right here and now. Print off this report and sign your name at the bottom of it. That way you re making a binding contract with yourself to follow these rules! If you implement the rules above in your trading, you ll see remarkable changes that will set you on your way to market success! The choice is yours Profitably yours, The Dynamic Wealth Report Team

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