The Keys to Financial Independence In the Stock Market

The key to being a successful investor takes patience as well as focus. Before anyone that is interested in trading in the stock market a plan of action will need to be put in place. Investors must make sure all debts are paid off, loans or any other financial obligations. Its a great idea to have at least 3 to 6 months of living expenses put away under the mattress or set aside in case of an emergency. A safety net for an 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 sense to buy a stock after it has made a huge run up in price.

The worst thing and investor can do is take stock tips from emails, rumors, or non professionals. You may have seen a guy on the television screaming BUY, BUY, BUY or even saying that the stock is in his or her charitable trust which doen not mean anything. All of the above would not mean anything in the long run to any investor unless they take the time to study the markets carefully in order to find the very best stocks and at the right time.

This is the only way the stock market can be benificial to any investor. Investors must follow the rules by putting 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 on a daily basis. Practice makes perfect and no one is perfect, but we can do anything if we try hard enough and with trading stocks patience is very important. Investors must pay attention to thier surroundings as if they are crossing the street. Stock have no emotions and they dont care about how investors feel.

The worse thing an investor can do is get emotional while trading. By doing this investors tend to rush their trades and that is one of the fastest ways to loose money. Instead of a stock holder you then become a stuck holder. Holding on to unwanted shares of a stock that continues to be a loser. What an investor must do in a situation like this is go back to the beginning, and start all over. Following the rules will always lead you in the right directions. If every investor follows a set of rules or strategies that work for them daily all the bad unnecessary things that make them take huge losses would help them make substantial profits.



By: Marlin Rolle