Traders are relentlessly drawn by the
stock exchange. The liquidity of stocks and the promise of steady returns make
them the perfect take for several traders. The only downside being long
durations of holding trades. Starting off, every trader has the same question -
"Is it worth investing in stocks?"
It definitely is! With a value well over $30 trillion, the stock market offers excellent trading grounds for the adept.
It definitely is! With a value well over $30 trillion, the stock market offers excellent trading grounds for the adept.
Here are 4 tips to keep in mind while
entering the stock market
 |
1) Avoid Following the Crowd: As quoted
by Andy Hunt - "Only dead fish go with the flow." In stock trading,
never practice herd mentality. A typical trader's mentality is to invest in
stocks that others have invested in. Each trader has a particular trading strategies and an
outcome to achieve; trying to fit in those shoes will do you no good in the
long run. Let other traders only motivate you, not lead you altogether.
2) Plan for the Long Run: Though stock exchange market has high liquidity, they are not a means of quick money. When you plan on investing in stocks, brace yourself for the long run. Stocks have an erratic and volatile nature; this means that there's no guarantee your investments will present themselves to you when you need them. Ideally, stocks help save for retirement, college or participating in a real-estate purchase.
3) Plan Thoroughly: Stock Trading is built on a strong plan. Without the necessary foundations, success is a dream! Every great trader has a plan of his/her own to conquer the game. Devise your own! A good plan doesn't simply help you make the most out of a trade, but it also helps you avoid losses. Planning ahead, you can make sure measures are in place to keep losses at bay and profits multiplying.
4) Never Time the Market: Timing the market is like swimming against the flow - the latter is always stronger. Even trading legend Warren Buffet advises strongly against it. Returns don't obey you, they obey the market. Though speculations are a necessary skill in trading, in stocks it is advisable to let time call the shots.
2) Plan for the Long Run: Though stock exchange market has high liquidity, they are not a means of quick money. When you plan on investing in stocks, brace yourself for the long run. Stocks have an erratic and volatile nature; this means that there's no guarantee your investments will present themselves to you when you need them. Ideally, stocks help save for retirement, college or participating in a real-estate purchase.
3) Plan Thoroughly: Stock Trading is built on a strong plan. Without the necessary foundations, success is a dream! Every great trader has a plan of his/her own to conquer the game. Devise your own! A good plan doesn't simply help you make the most out of a trade, but it also helps you avoid losses. Planning ahead, you can make sure measures are in place to keep losses at bay and profits multiplying.
4) Never Time the Market: Timing the market is like swimming against the flow - the latter is always stronger. Even trading legend Warren Buffet advises strongly against it. Returns don't obey you, they obey the market. Though speculations are a necessary skill in trading, in stocks it is advisable to let time call the shots.
Patience and practice are the mantras to success in stock trading. Equipped with a solid trading platform and driven by a stellar strategy, you can never falter in stock trades! At WesternFX, we provide our traders with an impeccable trading platform to work with and our experienced traders will offer aid with excellent strategies. If you're looking to rock the Stock Market in Malaysia, call us today!
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