The Keys to financial Independence In the Stock Market

Before anyone starts investing in the stock market you must be sure to have a financial safety plan. Make sure that you payoff all debt owed, loans or any other financial obligations. Have at least 3 months of living expenses put away under the mattress set aside in case of an emergency. A safety net for emergency can be in a savings or checking account at a local bank so that when it’s needed you can get to it fast. Before you chose your investment strategy you must understand your goals. There are a few questions to be answered before you start investing in stocks. How often will I trade? How much risk should I tolerate? What will be my entry point? What will my exit point be? There are many questions to be answered especially being that many investors only buy stocks because of a tip they got from a friend or simply to show them off to their friends so that they can brag only to say I own 10 shares of XYZ. The question is, are they making money? The reason for investing is to make money nothing more nothing less. Are you buying stocks at the right time in order to guarantee huge profits? A strategy is what is needed to reap the benefits of every trade; education is the key, study and be patient. Time is one of the most impotent factors involved in buy and selling stocks.

Stocks can be bought, sold or even shorted at different prices. When do you get in and when do you get out is a question that many investors ask over and over again. That is a very important question because it does not make since to buy a stock at its peak after it made a huge run up. Say for instance you bought a stock for $8 per share the stock then goes up to $8.10, but little did you know that the stock had been on a run for over a month going from $1.09 to $8.10. Being that you were not paying attention, then again you might have been paying attention to a business network analyst on a popular business television show. You might have seen a guy on the television screaming BUY, BUY, BUY or even saying that the stock is in his or her charitable trust. Maybe you got a tip from your best friend, none of the above is good to you unless you study the markets carefully in order to find the very best stocks and at the right time.

That’s the only way the stock market will work for you. Follow the rules; put a strategy in place that will take you outside of your head. You must think outside the box to be not just a good trader but the best trader. Being financially free is very important. Follow the trend the trend is your friend until it ends. Take you time be patient and make the right choices. All it takes is time, like everything else we do everyday. Practice makes perfect and no one is perfect, but you can learn if you try hard enough. Pay attention to your surroundings as if you were trying to cross a busy street. The worse thing an investor can do is get emotional while trading. By doing this investors tend to rush their trades the fastest way to loose money. Instead of a stock holder you then become a stuck holder. Holding on to unwanted shares of stock you want to sell as soon as you can.

What an investor must do in a situation like this is go back to the beginning, start all over, following the rules. Following the rules will always lead you in the right directions. If you would have been following the rules all the bad unnecessary things that made you take losses would have never happened. The stock market is not about buy low and sell high. I know you have heard this term over and over again. The buy low sell high term is something that most investors use. There are many business magazines, newspapers, and books that state that buying low and selling high is the way to buy and sell stocks. Follow me throughout the information provided and you will learn that buying low and selling high is jus a piece of the puzzle when it comes to investing in the stock market.



By: Marlin Rolle