These Six rules to successful investing will provide you with a firm foundation from which you build on; there is no magic formula and what works for one might not work for another. In other words, you can modify some of the rules listed below to suit your personal trading style.
1) Mainstream media should be viewed in the same light as rubbish. Use these outlets to determine what you should not be doing. They always hype a market or sector when it’s time to get out.
2) Technical analysis plays a key part when it comes to investing, regardless of whether you choose to be a contrarian investor or not. Take time to understand the basic tenets of this very important field. Don’t focus only on the popular Technical analysis tools; you will be amazed at how effective some of the lesser known indicators are once you get to understand how they function and operate.
Article of Interest: Stock Market crashes are opportunities for the Rich to Fleece the Poor
3) Spend time understanding the markets you are going to target or the sectors of the stock market you intend to play. We have put up an extensive list of resources, all of which are free here. Free Trading Resources
4) Formulate a sound plan. Wishing for a falling star is not going to help you in the markets and please don’t try to focus on catching a home run. Those that adopt such notions, always catch a falling dagger, a process that is fraught with pain and misery. The plan should include profit targets on each and every trade, and, an exit plan, in case the trade does not work out.
5) Do not put your hard earned money into options; options is as close to gambling as you will get in the financial markets. The odds are stacked against you and the ones that usually win are the ones that sell the options, not the ones that purchase them. Wait until you grasp the key concepts of buying and selling stocks. After you closed several profitable trades you can use some of this money to gamble on options.
6) Learn to relax; if you don’t relax it’s really hard to win. Disease is a body not at ease, so if you are not at ease, you will most certainly perform dismally in the markets.
Additional random thoughts on How to build wealth in the Markets
If you seek freedom, the 1st task is to attain financial freedom so that you can break free the clutches of the top players who strive to enslave you. They want you to run in a circle like a hamster that runs on a spinning wheel; the hamster thinks the faster it runs the further it will go, but sadly it is going nowhere.
Mass psychology is a very powerful tool, and if employed correctly can help you spot the abnormal levels of manipulation, the masses are subjected to. It would be a good idea to familiarise yourself with the concept of “ Plato’s allegory of the cave.”
We demonstrate how individuals can use Mass psychology to their advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that could be detrimental to your overall well-being. Hop over to the investing for dummies section of our website; it contains a plethora of free resources and covers the most important aspects of mass psychology.
Consider subscribing to our free newsletter to keep abreast of the latest developments. Change begins now and not tomorrow, for tomorrow never comes. Understand that nothing will change if you do not alter your perspective and change your mindset. If you cling to the mass mentality, the top players will continue to fleece you; the choice is yours; resist and break free or sit down and do nothing.
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