Be a Wise Investor – Don’t Gamble in Stock Market
As I was walking on the street today, I passed by an advertisement of an investment house. It stated “Be An Investor, Don’t Be A Gambler.” I could not agree more with this statement when it comes to money investment or trading in the stock market. You simply cannot have the gambling mindset if you like to make money in the stock market.
Many millionaires are born in the market simply not because they have very good skills or technique to forecast the market direction. The simple reason is that they have a trading plan to follow when they trade or invest in the stock market.
Don’t Be A Gambler
“If you fail to plan, you plan to fail”
I sure many of us have heard about this statement. It apply for stock trading and investment as well. Many of us get into the stock market wishing to make BIG BIG money at the FASTEST and SHORTEST time. That’s a gambler mindset. Imagine this, you heard your friends, or your relatives talking about a specific stock counter, how fast it grows and how it make money. I am sure you will start to feel a bit greedy and like to involve in the game. Then, you follow their suggestion, call up your broker and place an order. Good, the stock started to grow, but suddenly it crashed. You ended up holding on to the stock with huge paper loss.
Does that sound familiar to you? This is the mindset just that you are walking into the casino. You are betting that the market with 50-50 chance of winning. You are a follower and you make decision based on gossip, rumour or broadcast news. You are wishing simply that there is a day that the money pouring down from the sky and all lands into your garage.
Stop this day dreaming “Gambling” mindset. The only way you can be profitable in the stock market is to be a wise investor.
Be A Wise Investor
There is not free lunch in the world. It is the same in the stock market. No doubt that there are many people making millions in the stock market. But it simply did not happen by luck.
The single factor that distinguish between a good and bad investor is the willingness to learn.
If you are serious and want to be a millionaire in the stock market, you must be willing to learn. There are 2 main schools in stock market analysis. They are fundamental analysis or technical analysis. They both have pros and cons and none of them is perfect. However, start to pick up the skill by learning either technique will help you to analyse the market. These information about stock market trends or the stock valuation will help you to make an informed decision on what to buy or short.
This approach is a total contrast to placing order simply listening to your friends or relatives or even your brokers. Remember, they are not responsible for your money, only you are responsible for your own money. So, be a wise investor starting today!
KP Yang is a private trader are passionate about invest and make money in the stock market. He also enjoy using technical analysis to study the market trend and formulate trading strategies based on TA. He shares his view on the market on his blog at InvestMoneyLab: Best Way to InvestMoney “There is NO Secret Ingredients. That’s just YOU” – Kungfu Panda. I believe practice makes perfect, everyone can be successful in the stock market by constantly learning, practicing and taking action. You can download a free metatrader software too if you are learning about technical analysis.
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