How to make money in the stock market?

ejspkk49 (37)in #steem • 6 years ago

Steemians if you want to make money in the Stock Exchange, there are some things you have to know. Those who insist on trying to make money in the financial markets without learning a few minimums are only sticks. Sticks and more sticks

How to invest in the stock market and earn money
If you want to make money in the Stock Exchange, there are some things you have to know.

Those who insist on trying to make money in the financial markets without learning a few minimums are only sticks. Sticks and more sticks.

I'll teach you the three basic things you have to know so you can understand and apply the tricks to make money in the Exchange that I will explain:

Trick number 1 to earn money on the stock market
The Stock Exchange is not a casino. That first thing.

That is, there are no random dice that decide whether the price of your shares (or gold, or oil, or IBEX35, or euro / dollar, or whatever) will go up or down.

Prices always move for something, for some reason.

But that does not mean that you can always know the reason. In fact, the normal thing is that it is not known.

When I talk about the reasons that move the stock market, I do not mean reasons like the economic pressure of China or things like that.

That's fine for newspapers, but they are not real reasons, just simple justifications.

The reasons that move the price are always those of the law of supply and demand. That is what moves the Stock Exchange.

And, after them, sometimes, the news comes.

Therefore, the one that operates on the basis of news, always goes behind and always ends up losing money. Forever. It's a matter of time.

Trick number 1: Do not trade on the stock market based on news. The news is behind. The price is ahead. Learn to read the price to anticipate the news.

Trick number 2 to earn money on the stock market

This roulette, even being the most benevolent that exist (the American roulette is much worse), will make you lose money

Click on this infographic to download it!

forever; It does not matter how lucky you are. It is designed to take out the pasta.

In a casino roulette, you can bet almost 50%. For example, red and black or even / odd.

That is, if you bet red and red, you recover what you bet and you win the same, but if it does not turn red you lose the bet.

This leads us to think that, if you bet many times, you will end up just like you were; because half of the time you will win and half will lose. And in the end, you keep the same.

But it is that non-red is more likely than red: There is a green box (zero).

That kills you completely: The zero is neither red, nor black, neither even nor odd.

Whatever you do, it's always more likely that you lose than you win.

Whatever you do, playing roulette is like losing money patiently.

Well, in the stock market this is the same:

If you operate at random, in the long term you always lose.

That is, if you buy without looking, closing your eyes regarding what you buy and when you buy it, in the long term you lose.

This is because there are commissions (broker and market, are inevitable). It's like there's always a green square of zero.

In addition, there is one more important factor: The market is incredibly well designed so that whenever you think it's a good idea to buy, do it at the worst possible time. And the same happens when it comes to selling. Everything you do on impulse is practically guaranteed to be wrong.

Trick number 3 to earn money on the stock market
With the right knowledge, financial markets stop being a game of chance (loser) and become a game of skill.

Here the best wins, not the luckiest.

To win you do not need luck.

Even so, since there are a million ways to make money in the markets, the usual thing is that people are constantly changing their method without actually learning one.

Trader trainees are usually very impatient. They want to earn money before gaining ability, and that leads them to pass too superficially for what they have to learn. In turn, this leads them to think that the method does not work and they change to a new method.

So again and again.

I know people who have been stumbling for many years, from method to method, from course to course, and from teacher to teacher. Without realizing that what they have to do is stop for a moment and get serious with what they already have.

They just need to specialize at one time and endure there for a season; but they do not realize it.

Trick number 3: Specialize in a very specific way of operating that works and do not move from there. You will end up becoming one of the best and that will make you a winner.

If you want, you can learn the system that I use, explained with many real examples, in my online video course:

One of the biggest difficulties of investing in the stock market is knowing what to do when losing money.
Because when you buy an action, sometimes you win and sometimes you lose.

But long runs of losses always arrive, purely by statistics.

And with the losses come the doubts, the insomnia, the uncertainty.

Loss bursts can be of two types:

Long and progressive: you are gradually undermining your morale: one month you lose -5%, the next one -8%, then you gain + 2%, you lose -7%, you lose -5%, I lose -13% .. and you plant in -36%. And then you ask yourself ... what do I do?
Short and violent: an attack on your nervous system: the typical "black week" arrives and your investments in the stock market fall by 40%: what do I do?
If you're on a losing streak and you do not know what to do, it's something you've done wrong.
You have to have plan B planned from the beginning. Know what to do when we lose a predetermined amount in advance.
That implies that before buying anything we should think about the losses. It seems depressing, but it is the most appropriate psychological approach.
When you plan Plan B is when you see the confidence grow necessary to invest with self-confidence, with daring. But all are doubts, errors and changes of methods.
There are many ways to control risk and reduce the losses.

First system: if you're doing it wrong, leave it
This is the simplest method, and very logical if you think about it, although contrary to human nature:

When you enter a losing streak, when you accumulate failures, it stops operating.

It is a very simple, clear, but psychologically difficult method: when you get into losses of 10%, of 20%, the natural thing is to keep operating, to try to recover from the losses.

But it is better to retire for a while and return to the markets later.

How much later ?. It depends on the reason for the losing streak:

If your losses are due to a general market collapse, return when markets stabilize
If your losses are due to own errors, failures that you are not sure why they happen: come back when you find the errors and make your method evolve.
If your losses are normal, due to the volatility of the stock market, it returns after 1 month.
And although sometimes retiring in losses will hurt you, it's a good thing in the long term: with this one method this method will avoid the super-loss, it will have been worth it.
The most important thing in the stock market is to avoid big mistakes.

The monthly test in my case is due to the fact that the curve of the results curve is historically of slow movements.

If you use this same idea in your investments, you should study your historical results to adapt the frequency with which you test.

If you are not clear about the volatility of your earnings curve, you can use a simpler but similar method: when you lose 6% in a month, you stop trading until the following month.

conclusion
There are other more sophisticated techniques of risk control, although I always believe that simple techniques, if used consistently, can equal or surpass more complex techniques.

But the most important thing is to be clear about your method of cutting losses. Although it is a simple method,

I have known people who have lost amounts of five zeros in their investments, and I have seen the effect they cause: tears, many tears, feelings of guilt and even depression.