9 ways to build wealth in the stock market

9 Ways to Build Wealth: Unlocking Financial Abundance

Great things are done when men and mountains meet. This is not done by jostling in the street.
William Blake

Unlocking Financial Abundance: 9 Ways to Build Wealth and Secure Your Future

Updated April 2023

First and foremost, it is crucial to grasp that panic should not influence market decisions. Failing to abide by this principle renders any advice or words ineffective.

Contrarian investing centres around maintaining control over your emotions. In other words, you allow rationality to prevail and discard your feelings. While some experts argue that mastering this investment approach is challenging, the reality is that it is simple to comprehend and execute. All you need to do is adhere to the uncomplicated guidelines below, and you will be well on your path to becoming a more disciplined and prosperous investor. We highly recommend dedicating time to comprehending the fundamental principles of Mass psychology.

These nine rules below will provide you with a solid foundation to build on. However, these rules do not cover every single angle on this subject.  The two most important criteria are patience and discipline; without them, you will have difficulty succeeding in the market, no matter your chosen strategy.

9 Wealth-Building Strategies: Unleashing the Path to Prosperity

  1. Never panic: this is the master rule. If you fail here, then nothing matters.
  2. Patience and discipline are two of the most essential traits you need to master after the above rule.  If you cannot master these two, you will fail with the rest. Thus, you must understand that you cannot win in the markets if you are in a rush and lack discipline.  You need to wait for sentiment to be euphoric, or the crowd should be in panic mode, before deploying large chunks of our money into stocks.
  3. All forms of traditional media should be viewed as toxic sources unless you will use the information contrarian; take a position opposite to what is widely popular. Use traditional media to get a gauge of what the masses are doing.  Emotions should be at the sweltering level before you decide to take action. Do not oppose the groups just because they have jumped on the bandwagon. One must wait until the bandwagon is overloaded and threatens to buckle under its weight before heading for the exit and taking a position that opposes the masses.
  4. Come up with a strategy before you start playing with real money. Don’t be foolish and start hoping for a home run. Your only reward will be loss and misery. The plan should include profit targets for every trade and an exit plan in case the business fails.
  5. Technical analysis is critical, in our opinion. All traders should have a firm understanding of the basic concepts of this field. Try to understand how 2-3 technical indicators work. Doing so will significantly improve your trading skills.
  6. Study and understand the markets you are going to trade in. We have put up an extensive list of resources, all of which are free here. Free Trading Resources
  7. The law of balancing comes into play here. When you win significant money, help one person in your lifetime, and your rewards will be 100-fold.
  8. Options are a no-no. Under no circumstances should you trade options until you have a firm grasp of the buying and selling stocks. Once you have made some profit, you can use some of this money to trade options if you still want to.
  9. Learn to relax. A stressed mind is not suitable for you. A sick body is not at ease, so you will perform miserably in the markets if you are not.

So what’s next?

A genuine contrarian strategy dictates that one should only initiate a position when the streets are awash with turmoil or when the general public either despises or overlooks the investment opportunity. It’s wise to buy when the masses are gripped by fear and panic and sell when the collective mood is exuberant with buying fervour. Remember, it’s crucial to exercise caution when you find yourself caught up in elation; that sensation often conceals overconfidence.

The unforgiving nature of the stock market is a reality that can’t be ignored. Employing stop-loss mechanisms is imperative for trading as they serve to minimize potential losses. Before entering any position, it’s essential to establish a predetermined threshold for acceptable loss.

The art of investing is profoundly entwined with emotions and the ability to triumph over them. Aligning oneself with the crowd should be avoided, as history has shown them to be consistently positioned on the wrong side of the equation.


Originally published on November 25, 2015, but continuously updated over the years, with the latest update in March 2023.

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