Do you know what kind of investor you are? Conservative, moderate or aggressive? To determine your investor profile, the objectives, age, degree of risk tolerance and the time period for which capital is investment are considered. The profile will define how you will act on a day of the stock market. An aggressive profile is willing to take more risks in order to make a bigger profit. But a conservative is not willing to take high risks and agrees to have a smaller return – in return for secure investment.
As for the purpose of understanding stock market, this should be as clear that the stock market, while delivering large profits, can also generate losses. With that in mind, now let’s get to the tips for making money in the stock market:
1 – Be Disciplined Every Day
Discipline should be part of an investor’s routine. The market only “rewards” those who engage in following a standard method: the operational condition will give you a greater chance of ending your days in profit. So the trend is for you to earn more and lose less. A trader who operates consciously, and has clear goals, tends to have good results in the long run.
So do not be upset with short-term fails. After all, not every day can be a profit. The trader who takes on the obligation to make money every day is certainly at disadvantage in the market. It is important that you outline your own strategy and not that of your colleague who succeeded. This may be the best way to make money in the Stock Market.
2 – Work, Develop and Be Faithful to Setup
You, as an investor, should be clear about what you want to do in the market. You should study the financial reports and market performance of the companies in which he wishes to invest. This knowledge should compose the basis of your financial strategy. Investors who do not go to school and go straight to practice have a good chance of souring losses. Understand that investing in variable income includes real risks. So you must manage them to minimize your chances of loss.
Operating in the financial market for professionals is a conventional full time job. But of course, it is also possible to invest in stock market in the open hours, studying and operating with few hours per week. But for this, you must determine a different strategy, based on the swing trade and not the day to day trade.
3 – Conquer Your Positions
If you have money and you allow it to operate that’s great. On the other hand having idle money reserves is not something a calculative person will do. The difference between operating and having money reserved is so huge. Those who confuse these both will end foregoing the profits that money in stock would have earned. Advancing this tip further, let’s understand, in a simple way, the two most common types of Stops: Stop Loss and Stop Gain.
The Stop Loss works as an insurance against possible losses. It interrupts a trade that is losing money before the loss becomes greater. To understand better, let’s consider an example: You buy a $60 share and, according to your studies, believe that if it falls below $55 it will tend to fall more. To protect yourself from loss, you schedule a stop loss order at $55 at the home broker. If the price falls according to your analysis, your paper is sold and you control the risk of the speculation.
Already Stop Gain is triggered when the investor believes that the action is coming to its maximum potential value and, therefore, prefer to sell it before its price starts declining.
4 – Do not believe in intuition, follow the serious analysis
Many investors lose money in the financial market by relying on “flatteries”. Know that “finding or not finding” will not change the opinion of the economic scenario. You may consider yourself a person with strong intuition, but when it comes to the stock market, you must prefer to rely on a serious analysis instead of getting carried away by the sixth sense. If you choose to speculate and act based only on your feelings, stock market is not a profitable option for you.
5 – Seek the annual goal on a daily basis
The last but not least tip is: the great secret of the market is to get positive results every day, even if small. If you want to earn 12,000 index points per year learn to earn 50 points per day.
This way, it will be easier to stay emotionally balanced to achieve the bigger goals. It is with discipline and the research for consistent and frequent results that a successful investor stands out from those who are undisciplined and inconsistent.
Making money in the stock market, operating from home, is the dream of many people. But understand that one of the laws of the market is that there is no “free lunch.” It is possible to obtain a good income by investing in stocks. However, there is a possibility of loss as well. So before you start, study and analyze keenly. You have a risk profile and operating out of it will only shake you, compromising your performance. To get started, just make a fully online registration by clicking the button below and wait for an email with the release of access to your account – with no opening or maintenance costs.