With many new investors starting investing just this year, it may feel like gains are all you have seen and I have seen many people ask if "investing" is easy. Without Further ado, I will explain why I am beating the market most of my stocks beating the market:
- LUCK: I can't enpahsize this enough, luck has a big reason as to why I have made gains. Many people think it is easy or think they have a "market" beating strategy, but in reality it is extremely hard to beat the market and if you can do is consistently, you would be worth billions
- I Invest and Don't Trade: The stocks that I buy are not for buying and selling quickly if it goes up or goes down a lot. For example, many of my big gains have come from a few days of exponentials gains. But before this happened, I took some heavy losses
- I Try to Avoid Emotion: I don't like seeing losses, no one does. For this reason, if you truly believe in a stock, stick with it unless your views on the stock changes. For example, I was down 10-20% on a stock and I have made that back and a lot more for sticking with it.
- I Take Profits: Taking profits is always a good strategy becuase you may never know where the stock will go. Having gains is better than losses.
- I Do Research: Each time I buy a stock, I do research by looking at the 10Ks, 10Q, earnings call and etc. Only then, can you justify investing and not gambling
- WE ARE IN A BULL MARKET: Everyone is geniuses in a bull market. This is the only reason I am making good gains. Not because I am a stock genius
Remember Higher Risk Means More Money: You must be aware that if you invest in riskier stocks, you can gain more, but you can LOSE MORE. Don't take the risk if you cannot lose the money
I hope this helped at least one individual reflect upon their trading strategies.
Do any of you have any other tips?
Submitted February 11, 2021 at 10:26PM by moneytobemade8 https://ift.tt/3tLm1WB
