Be an INVESTOR and not a GAMBLER

Some tips I have gathered from the book 'Techinical Analysis Demystified':
  • Do not be influenced by other's views, make independent decisions
  • If the market cannot move up on good news, sell fast. If the market cannot move down on bad news, buy fast.
  • It takes patience to wait for trends to be established or to wait for the correct setup to enter. You must have a precise entry level and reason for entering. Jumping in for dear that you'll miss out is not a good enough reason to buy.
  • Knowledge of human nature: Market hate to sell at even numbers. Keep stop orders just short of round whole number as well.

Here are some advice from Createwealth8888:

To not GAMBLE in the stock market, you can do one or more of these
  1. Leave your capital invested and focus on collecting stock dividends and likely over a long period of time you will finally recover all your capital plus more.

  2. Periodically recover your capital plus some capital gains and re-invest when stock market presents another opportunity.

  3. Periodically collect both stock dividends and some capital gains and re-invest when stock market presents another opportunity.

Read his 'Touchstone' story here - Opportunity in the stockmarket?



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The contents of this blog are author's personal opinions and do not constitute advice to hold, buy or sell any securities, commodities or assets mentioned. I do not guarantee the accuracy and reliability of any information provided, and shall not be liable for any losses incurred from reading my posts or using the materials herein. This blog may contain affiliate links to external sites.